Why Do Watches Appreciate In Value?

If you don’t think watches are great investments, this might change your mind. CNBC’s article on luxury watches highlights that the demand for luxury watches has skyrocketed in the past few years, and will continue to grow thanks to the increase in new watch collectors.

More individuals are investing in watches than ever, especially because of the increase in online information sites and social media posts about watch collections. On top of that, long-time watch collectors are also getting their hands on new models, since their values can appreciate over time. 

This value appreciation is mainly due to these factors:

Consumer Demand

The surge of new watch collectors is one of the reasons for the climb in value over the years. Since there’s a limited supply of these specially crafted timepieces, many collectors are willing to pay higher prices so that they can get specific models as soon as possible.

This trend will likely continue because watchmakers can’t simply increase their production to meet consumer demands. In fact, Bloomberg illustrates that watch scarcity isn’t a company strategy, considering that watches undergo a complicated and precise manufacturing process. These meticulous processes ensure watch quality, which in turn inspires more collectors.

Inflation Rates

Numerous consumer products are rising in value because of inflation, and watches are no exception. While it can be alarming to see the increasing prices of daily necessities, inflation can be a blessing for individuals who benefit from the rising value of their investments.

Since products are subjected to the time value of money, AskMoney claims that the value of products will increase over time due to inflation. It’s no surprise that watch values are slowly rising now, given that companies need to raise their prices to allocate for the rising costs of materials and labor. So even though it seems like watch values can't get any higher, you can expect more rises in the next few years.

Unique Materials

Watches with unique materials can be pretty irresistible, so it’s no wonder that many collectors are willing to pay a high price for them! Some individuals even look for models with a specific material or a unique dial color, which increases the value of these watches.

There are quite a few elegant timepieces that are designed to stand the test of time. Our article on the ‘Five Accessories That the Sophisticated Black Man Should Own’ emphasizes that watches can be made with a scratch-resistant face made of Hardlex material and gunpowder colored metal hardware. Considering that these unique materials can be easily preserved for years, one can expect that their value will remain high in the future.

Celebrity Usage

Believe it or not, certain models have greater value because of who they're associated with. Now that more celebrities are collecting watches, fans and even other collectors are following suit.

Avi & Co founder Avi Hiaeve pointed out that watches have historically proven to retain or increase their value over time, which is why his celebrity clients are willing to pay extra for these investment pieces. These celebrities raise the consumers’ awareness regarding these watch models, thus increasing the demand for the goods. Some individuals are even willing to go as far as purchasing watches that celebrities have used, such as Elvis Presley’s Omega watch that sold for $1.8 million.

Watches are a great buy, whether you want to make an investment or you simply want high-quality accessories. And since each model is carefully crafted by manufacturers you can ensure that your investment will serve you well over time.

Article contributed by Jenny Roth exclusively for A Few Wood Men.