Why you need to put your money where your wrist is

Unlike the stock market, you're guaranteed a hefty return on investment

It's no secret that superior art appreciates in value and is far more precious than being a wall hanging or sculpture in your home or office. The same algorithm applies to fine watchmaking, as practiced by storied brands like Rolex, Patek Philippe, Audemars Piguet and Richard Mille. “Luxury watches over the past decade have seen a tremendous amount of appreciation,” says Jay Makhijani, managing director of Simone Ventures and R & M Luxury. “A watch is a piece of jewellery for men and it's quite evident that affluent people, including those who buy art and collectibles, are investing a part of their yearly budgets in timepieces,” he adds.

Watches can be collector's items that go beyond technicalities to give the wearer more than an accessory on their wrist. Some portray a story and have even been popular vehicles for designers and artists to expand their creative horizons, dating back to the highly decorated pocket watches of the 16th century. But it can be argued that watches are not quite art because they serve the practical function of simply telling time, right? The truth is that there's a whole range of timepieces that can be considered excellent investments, much like a Picasso, Pollock or Souza. Viraal Rajan, director, Time Avenue believes that “Watches like art are overall priceless, the only difference is watches have a heartbeat making them a true form of living art.”

Time is money

Possibly the most iconic is the legendary Rolex 'Paul Newman' Daytona, a motor racing-inspired chronograph. The late movie star's wife gifted one to him in the late 1960s, and it was rare even then, distinguished by its Art Deco style numerals. Its price, new, at that time? Roughly $250. The price his watch fetched at auction in 2017? A mind-boggling $17.8 million. If you were to search a pre-owned watch website like chrono24.com, you'd be hard-pressed to find a 'Paul Newman' Daytona for less than $250,000.

When it comes to rocketing values, Patek Philippe is the king of the hill. Its Grandmaster Chime is the most expensive watch ever auctioned, netting a near-outrageous $31.19 million at the Only Watch auction in Geneva in 2019. The watch was admittedly purpose-made for the event, but even at that stratospheric price, it's almost certain that the buyer will make a profit if they decide to sell it. Most recently, the first of 170 limited-edition Patek Philippe and Tiffany & Co., the Nautilus Ref. 5711––that celebrates 170 years of a good-looking partnership between the two giants––sold for $6.5 million at auction, more than 120 times its retail price. Even a 'regular' Nautilus 5711/1A with a blue dial (now discontinued and which had a recommended retail price of $30,620 in the US), lists up to $650,000 on chrono24.com. Don’t overlook the classics either. A Cartier Crash––a 1970 model sold for a record $884,972 at the Sotheby’s Important Watches: Part I auction in Geneva last November––is timeless enough to be worn on the regular and still appreciates over time. “Buying a classic timepiece is a low-risk choice and will always be in demand, no matter the trend. They have history and prestige value. The Cartier Santos is another fine example. It’s been in production for several years and was relaunched a few years ago and the demand for it has been outstanding,” says Art of Time’s CEO Gaurav Bhatia.

Some collections from these brands also tend to be more in demand than others like Rolex Daytonas, Patek Philippe Nautilus’ and Calatravas, Audemars Piguet Royal Oaks and Richard Mille. Makhijani adds, “The minimum price of these in the aftermarket is four times the retail price at an average. People who have bought these years ago have not only enjoyed wearing them but have seen a considerable appreciation even if it’s used and they decided to sell them.” Some genres of watches––like diving, auto-racing, aviation and high complication––are also more prized than others. Then there's a straightforward supply and demand situation. If Roger Dubois decides to make only ten pieces of a particular watch, it's going to sell out almost as soon as it's announced. When (or if) it comes up for resale, keen collectors will be ready to splash the cash to get hold of it. “An important watch has its own charm and if you're out for an important meeting, it does make a difference. You can't wear your art or take your car to an important meeting. In fact in the last two years watches have been conversation starters at dinners,” says Makhijani.

Popular culture

A connection with celebrities can also make a watch's value head to the moon. Timepieces belonging to celebrities usually sell at auction for large sums, and even if a celebrity is seen wearing a particular model, it can drive up the watch's price by association. The Tag Heuer Monaco, launched in 1969, was worn by Steve McQueen in his 1971 racing film Le Mans and instantly became a cult classic; an example from his personal collection sold for over $2 million in 2020. Richard Mille's timepieces are very popular with movie, music and sports stars worldwide and part of the reason they're so coveted. “The RM11-03 has the most important people in the world literally requesting their authorized dealers for a favour,” says Makhijani. It explains why Jay-Z, Drake, Rafael Nadal and Natalie Portman are loyal fans. "We don't wear a watch because of the utility it offers. There's history, heritage, artistry, scarcity, and when these sentiments are influenced by marketing, a gold rush ensues," says Sarosh Mody, director, Luxury Watch Works, a timepiece repair, service and restoration workshop based in Mumbai.

If you're thinking about adding watches to your portfolio, there are a few things to keep in mind. Firstly you need to be able to afford it. You have to be patient since a watch can take a few years to appreciate. You need to be willing to sell your watch at the right time. Unlike the stock market, there's no regulated exchange for watches, and you need to deal with unorganised entities when you want to sell, like websites and independent watch dealers.

So, where should you look? Start with authorised luxury watch dealers like Time Avenue, Simone Ventures (exclusively Rolex), Art of Time and Ethos Summit (Mumbai, Delhi, Bengaluru), where you can buy both new and pre-owned timepieces. If you're travelling abroad, then you'll have access to a far greater number of authorised dealers as well as websites like Bobswatches.com, Chrono24.com, Hodinkee.com and Analogshift.com. According to Mody, you'd also do well to look for brands other than the legacy ones. "I don't see the euphoria for brands like Rolex, Audemars Piguet and Patek Philippe dying down, but I do foresee an upswing with the stronger independent watchmakers and luxury brands—the likes of MB&F and H. Moser & Cie. Buy them. Lock them in for a decade or two," he says.

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