Should I Invest in Limited Edition Watches?

Introduction:

The allure of limited edition watches is undeniable for many collectors. However, should you consider investing in these exquisite timepieces?

No: Why Limited Edition Watches May Not Be the Best Investment

While the sentiment may be strong among watch enthusiasts, financing experts recommend against relying on limited edition watches for substantial gains in value. The key is to seek the advice of a financial advisor to ensure your investment is well-balanced and aligned with your financial goals.

Yes: The Case for Investing in Limited Edition Watches

What convinces many enthusiasts to proceed with limited edition watch investments?

The primary driver is scarcity. These unique timepieces represent a significant portion of the luxury watch industry's appeal. With a limited number of pieces available, collectors are willing to pay premium prices, driving up the value.

Once a limited edition watch is out of production, its sold-out status often translates to scarcity in the secondary market. This scarcity can lead to exponential growth in value, especially over time. However, the road to accessing these watches is not straightforward. Many are reserved for high-value clients and do not appear in retail stores.

The Secondary Market: A Trader's Dream

While the primary market for limited edition watches may be elusive, the secondary market offers substantial opportunities. Platforms like Chrono24 and Chronext provide a avenue for investors to purchase these watches and potentially realize significant returns.

Example: Omega Speedmaster (Tropical Broad Arrow)

A notable example of the value these watches can store is the Omega Speedmaster, nicknamed the Tropical Broad Arrow. Sold for CHF 3.15 million at a renowned auction house in Geneva, this watch serves as evidence of the potential for substantial gains.

Long-Term Worth and Valuation

For those not purely interested in wearing the watch, the long-term worth of limited edition vintage watches is notably strong. However, the key is careful acquisition. Buying at a premium introduces risk to the investment. The watch must be purchased at a reasonable price to ensure a stable return on investment.

Expert Insight and Investment Vehicles

For those willing to put in the expert knowledge and industry network required to make informed decisions, the pursuit of limited edition watches offers significant opportunities. WatchFund, based in Singapore, exemplifies the professional approach to luxury watch investment. With a 20% annual average historical appreciation, WatchFund is a leading investment vehicle for high-net-worth individuals.

Investors can participate through direct investment, starting from 250,000 SGD (approximately 183,000 USD), or through a crowdfunding platform like Konvi, which allows retail investors to invest as low as 250€.

One of the notable success stories Drawn from WatchFund's portfolio is the Richard Mille RM-004, which was bought in 2014 for 98,000€ and sold in 2018 for 270,000€, showcasing the potential for significant returns on investment.

Consider the H. Moser Cie Tourbillon Dual Time unique piece, with its 125,000€ retail price, also a prime example of the investment potential in limited edition watches.

In conclusion, while limited edition watches may not be the primary asset class for everyone, their potential for value storage and appreciation is undeniable. For those willing to put in the research and groundwork, the rewards can be significant.