From Hype to Heirloom: Do Watches Still Make Great Investments in 2025?
In recent years, luxury watches have transcended their traditional roles as mere timekeeping instruments to become symbols of status, craftsmanship, and, notably, investment potential. As we navigate through 2025, the question arises: Do watches still make great investments? Let's delve into the current landscape of watch investments, examining market trends, brand performances, and considerations for prospective investors.
The Current State of the Luxury Watch Market
The luxury watch market in 2025 stands as a mature yet dynamic asset class, valued at approximately $72 billion globally, with projections indicating sustained annual growth between 5% and 12% through 2030. Following a brief cooling period in 2024—triggered by macroeconomic tightening and a correction from the speculative highs of 2022—the market has recalibrated, returning to fundamentals such as brand integrity, scarcity, and long-term value retention. The Luxury Playbook
Performance Comparison: Watches vs. Traditional Investments
A study analyzing various asset classes between January 2019 and September 2024 revealed that luxury watches exhibited an annual return of 5.68%, outperforming real estate (3.14%) and fixed income assets, though trailing behind equities (12.85%) and gold (13.06%). Notably, the watch market demonstrated the lowest annual volatility at 3.90%, suggesting a relatively stable investment compared to more volatile markets. Business Insider+1The Luxury Playbook+1
Top Performing Brands and Models
Certain brands have consistently demonstrated strong investment potential:
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Audemars Piguet: Average annual returns of 11.68%, with models like the Royal Oak "Jumbo" Extra-Thin (Ref. 15202ST) commanding premiums due to limited production and high demand.The Luxury Playbook
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Patek Philippe: Average annual returns of 10.92%, particularly for the Nautilus series, known for its scarcity and timeless design.
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Rolex: Models such as the Daytona and Submariner have seen significant appreciation. For instance, the Rolex GMT-Master II "Batman" (Ref. 126710BLNR) released in 2019 at a retail price of around $9,250 was trading for over $16,000 on the secondary market by mid-2023. The Luxury Playbook
Factors Influencing Watch Investment Value
Several key factors contribute to the investment potential of luxury watches:
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Brand Prestige: Established brands with a history of excellence tend to retain and appreciate in value.
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Rarity and Limited Editions: Watches produced in limited quantities or discontinued models often become highly sought after.The Luxury Playbook+3Hautehorologe+3YouTube+3
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Condition and Provenance: Well-maintained watches with original components and documented history command higher prices.
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Market Demand: Shifts in consumer preferences and cultural trends can influence the desirability of certain models.
Considerations for Prospective Investors
While the potential for appreciation exists, investing in luxury watches requires careful consideration:
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Market Knowledge: Understanding brand histories, model specifics, and market trends is crucial.
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Authenticity Assurance: Engage with reputable dealers and consider watches with certified provenance to mitigate the risk of counterfeits.The Luxury Playbook
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Maintenance Costs: Regular servicing is necessary to preserve functionality and value, which can incur additional expenses.
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Liquidity: Unlike stocks or bonds, selling a luxury watch can take time, and the market may not always be favorable.
Conclusion
In 2025, luxury watches continue to offer a blend of aesthetic pleasure, craftsmanship, and investment potential. While they may not universally outperform traditional investments like equities, their low volatility and tangible nature make them an appealing diversification option for certain investors. As with any investment, thorough research and a clear understanding of the market dynamics are essential to navigate the world of watch collecting successfully.The Luxury Playbook+1Hautehorologe+1
For a deeper exploration of the nuances of watch collecting and investment in 2025, consider watching the following video:
