Timepiece Knowledge: How to Choose the Best Investment Watch
Watches add a touch of style or professionalism to an outfit. If you’re a seasoned collector or considering investing in watches, you already know that a well-thought-out collection can be a goldmine. Watches have proven to be a surprisingly rewarding investment for daring investors and those looking to hedge the value of their money.
Watches, unlike other investments, are subject to trends and evolving business sentiments. Premier timepieces are marvelous works of art with countless hours of labor put in, but they are still just an accessory at the end of the day. Unlike classic cars and real estate, their tangible value is significantly lower than that of other investments.
Things can get complicated when looking to buy an investment watch that will hold its value or even increase in value. We’ll share our top tips to help you make the best decision possible when shopping for an investment watch.
The Incredible Story of Panerai
Panerai is one of the investment watches globally. This company has an enthralling history, but the story of how the brand came to be in America will astound you even more. In the iconic city of Florence, Italy, Panerai was founded in 1836. The brand began by creating watches for the Royal Italian Navy and frogmen (forerunners to the modern Navy Seals) during WWII. Panerai, Rolex, and Italian authorities collaborated between 1936 and 1938 to refine the model that would become the definitive Panerai military tool watch, according to The Watch Box (3646). Panerai’s deliveries to the Italian Navy between 1938 and 1956 were dominated by these watches.
How did this brand become known in America and Hollywood? Surprisingly, it wasn’t until 1993 that the company began selling limited-edition watches to civilians. While filming Daylight in Florence in 1995, Sylvester Stallone came across the brand. He was so taken with it that he brought back a few for his friends. Arnold Schwarzenegger, a well-known friend, and fellow beefy action star, still wears a Panerai today!
Panerai was purchased by The Richemont Group, the world’s second-largest watch group, after Swatch Group shortly after its meteoric rise. By 2002, the brand had built a massive watch-making facility in the picturesque Swiss town of Neuchatel. Panerai has been a huge success since then, and the brand is now associated with strength, masculinity, military history, and style. In today’s world, colossal action heroes like Jason Statham, Arnold Schwarzenegger, Sylvester Stallone, and, of course, Dwayne “The Rock” Johnson wear Panerai watches. The trend for large wristwatches was started by Stallone, and it is still going strong today.
Things You Need to Know About Investing
When it comes to researching which watch to buy, being interested, passionate, or even liking the brand is critical. Investing is the process of putting money aside now to receive money later. These brands’ timepieces were created to outlast trends; they are timeless classics, they retain their value far better than cheaper and people are willing to spend more money on watches as time passes. Here are a few things to consider before spending a lot of money on a timepiece.
1. Begin your collection with the greats
When it comes to building your collection, you stick to well-known brands. Classic, desirable pieces, according to experts, will always hold a special place in the hearts of investors. While the initial investment may be high, these classics will serve as the foundation of your watch collection.
2. Conduct your research
Fundamental to any investment, research and preparation is essential if you are to succeed. Amateur investors frequently make the mistake of purchasing the most expensive watch they can afford in the hopes of jumping on the bandwagon. Don’t make the same mistake. Instead, conduct research and consult with industry experts or other investors.
3. Think long term
According to the economic rule, when supply falls, demand naturally rises and this can then be applied to purchasing watches. Vintage investments have a limited supply in the market, which drives their value. Such characteristics can be found in timepieces, automobiles, antique furniture, and wine. While vintage timepieces are typically out of most people’s price ranges, watches nearing the end of their production run are particularly important. These watches are not overly expensive, making them a worthwhile purchase. Furthermore, when a product is discontinued, the sudden drop in supply can cause prices to rise, allowing your investment to appreciate.
4. Lower Your Risk
Always keep in mind that investing too much of your portfolio in watches is a bad idea. Make certain that you never invest more than 10% of your total investment capital in watches. By establishing such a personal limit, you will reduce your own risk and be able to enjoy profits for a longer period. It is critical to remember that the price of a watch does not determine its worth as an investment opportunity. Although high-end luxury watch brands will always retain the majority of their value, many high-end luxury watches lose a significant portion of their value once worn.
Remember that nothing is guaranteed when it comes to investments, so do plenty of additional research and rely on your own intuition when deciding whether or not to make a purchase. Investing in timepieces, on the other hand, can be a very rewarding experience. With some careful investment and thorough research, you should have no trouble building a solid watch portfolio.
Stick to classic pieces that people will always want, and you’ll have a watch that will recoup the majority of your initial investment in 10 years. Discontinued watches are extremely valuable, and you should consider purchasing one.