Watches Resale Value: What You Need to Know to Make Profitable Decisions

Let's start with the question on everyone’s mind: How do you choose a watch with high resale value? It's a mix of brand recognition, rarity, craftsmanship, and historical significance. Not every luxury watch will appreciate, and not all will hold their value. The difference between a well-chosen timepiece and an impulse buy could mean tens of thousands of dollars in potential profit or loss down the road.

What Determines a Watch’s Resale Value?

The first step in understanding resale value is knowing what factors influence it. Brand prestige tops the list, with certain brands consistently holding their value better than others. Names like Rolex, Patek Philippe, Audemars Piguet, and Omega are well-regarded for their long-term resale potential. These brands have strong followings, are made with exceptional craftsmanship, and are steeped in horological history.

Rarity and Limited Editions:

Watches released in limited quantities or as part of special collections often appreciate over time. Collectors value exclusivity, which drives up demand and, therefore, the resale price. Patek Philippe’s Nautilus and the Rolex Daytona models, for example, have achieved cult status and are now sold at several times their original retail prices in the secondary market.

Here’s a useful chart that highlights the most sought-after watch brands and how their average resale values stack up in the secondary market.

Notice the wide gap between brands like Rolex and TAG Heuer. While both are well-respected, Rolex holds its value much better due to a stronger brand reputation, limited production, and iconic models that are always in demand.

The Role of Craftsmanship and Material

Craftsmanship also plays a vital role in a watch’s resale value. High-end watches are made with impeccable precision, often incorporating hand-crafted components that take months or even years to produce. Brands that emphasize superior engineering—like Jaeger-LeCoultre or Vacheron Constantin—tend to retain higher value because of the complexity and skill involved in their creation.

The materials used, from the type of metal to the movement inside, also affect the value. Watches made with precious metals like gold or platinum typically hold more value than those made with steel or less valuable materials. Moreover, models with intricate movements, such as tourbillons or perpetual calendars, often appreciate more than simple time-only watches.

Market Trends and Collectability

The watch market is not static; it’s driven by trends, cultural influences, and collector preferences. Some models that once went unnoticed now sell at premium prices due to the increased attention from social media, celebrities, or historical events. For example, Paul Newman’s Rolex Daytona sold for an astounding $17.8 million in 2017, largely due to the cultural cachet surrounding the actor and his watch.

Another example of this is the rise of vintage watches. Models from the 60s and 70s, particularly from brands like Omega and Tag Heuer, have seen a resurgence as collectors seek out unique timepieces that tell a story.

How to Protect Your Investment

There are several ways to ensure that your watch holds or increases its resale value:

1. Buy Limited Editions or Iconic Models: Watches that are part of a brand's flagship series or a limited release have a higher chance of appreciating over time.

2. Maintain Condition: A well-maintained watch—complete with its original box and papers—will fetch a higher price in the secondary market. Be cautious with refinishing or repairing a watch too many times, as this can lower its value.

3. Stay Updated on Market Trends: The watch market fluctuates, and staying informed on what models are in demand can help you sell at the right time.

4. Insure Your Watch: A luxury timepiece is a significant investment, and insuring it ensures that you’re protected from financial loss due to theft or damage.

Buying as an Investment vs. Buying for Passion

There’s a clear divide between those who buy watches as investments and those who buy them purely for personal enjoyment. However, even if you fall into the latter category, you should be aware of how the resale market could impact your future decisions.

Let’s say you purchase a Rolex Submariner for $10,000. If you maintain it well and the model is discontinued (which happens frequently in the luxury watch world), you could potentially sell it for $15,000 or even $20,000 in a few years. On the other hand, a watch from a brand like Breitling might lose up to 30% of its value after the first few years, meaning your $8,000 investment could be worth only $5,600 if you decide to resell it.

Long-Term Appreciation: Why Patience Pays

Luxury watches generally don’t appreciate overnight. Instead, they require a certain level of patience. Most watches need several years, if not decades, to mature in value. Patek Philippe, for example, has a famous slogan: “You never actually own a Patek Philippe. You merely look after it for the next generation.” This captures the essence of luxury watch investing—many of these pieces grow in value as they are passed down to future generations.

For instance, the Patek Philippe Nautilus 5711/1A, which originally retailed for around $30,000, is now selling for upwards of $100,000 due to its recent discontinuation and high demand in the market.

Closing Thoughts: Is It Worth It?

Investing in watches isn’t for everyone, but for those with a passion for horology and an eye for detail, it can be a rewarding venture. Not every watch will appreciate; some will only maintain their value or even depreciate. The key is doing your research and understanding what makes a watch collectible, from brand prestige to materials, craftsmanship, and market trends.

Whether you’re a seasoned collector or a newbie looking to buy your first luxury timepiece, knowing the ins and outs of resale value can mean the difference between a lasting investment and a fleeting expense. After all, time is money—and nowhere is that truer than in the world of luxury watches.