Are you interested in purchasing a luxury watch? Are you longing to feel the weight of a classic Swiss-made timepiece on your arm? However, you feel you can’t justify the capital outlay. As a result, have you been hoping that a family member, or your significant other will catch your hints and gift you a watch?
By way of responding to the valid point that you feel you can’t justify the capital outlay, let’s consider turning this argument on its head and consider the merits of investing in a luxury watch.
Return on Investment (ROI)
It is essential not to just consider the financial outlay for a luxury watch like one of the Omega watches that hold their value.
The phrase “watches that hold their value” provides the raison d’etre for purchasing a luxury Swiss watch. Not only do these watches hold the value, they also increase in value over time, if looked after.
The 2016 Baselworld luxury watch fair noted that even though we live in uncertain economic times, watch prices are not making a cut-price concession to the unstable global economic conditions.
As an aside, it is July 2020, and the world has moved into a recession similar to the Great Depression, if not worse. Therefore, it’s reasonable to assume that these watch prices depreciate accordingly.
However, based on a historical analysis of watch prices in other recessions, they might decrease in the short-term, but they are a valuable way to preserve the value of your investment, especially if it is a long-term investment. The world will move forward and out of the current recession. Consequently, these watches will continue to increase in value over the medium to long term.
Let’s look at the following financial calculation:
You have decided that you would like to invest in an Omega Speedmaster Professional Moonwatch. It is also worth noting that the prices for this watch have sharply increased over the last couple of years. This price increase doesn’t only affect new watches, but also for watches sold on the pre-owned market that were manufactured before 1968.
Consequently, based on this fact, you’ve decided you’d like to purchase a 2017 Speedmaster Professional Moonwatch – dark side of the Moon timepiece. The watch face and strap are both pitch black. You’ll pay circa $8 500 for this preowned watch but it comes with the original box and an authenticity guarantee.
Omega watches are known to decrease in value by between 20% and 30% in the first year after their purchase. However, your watch was manufactured in 2017, so this depreciation has been factored in. It doesn’t affect you. Therefore, you can expect your watch to increase in value by at least 5% per annum. When compared to leaving the $8500 in your bank account, a 5% increase in value is a substantial increase when considered in relative terms.
This article has provided the rationale for investing in a luxury Omega watch from the Watches Guild. Therefore, it only thing left to do is to decide what model you’d like to buy, and whether you should purchase a new or quality pre-owned timepiece.