Watches: Investment?

[Jason's Auto Spa]

How many timepiece guys are here?

Do they just tell you the time, or do you have it to sell it later? (Like rare & limited coins)

I was given a watch as a gift (Nicest gift I will ever receive), never worn it, limited production, and I recently looked at the prices and realized that it now sells for 34% more than originally purchased for.

Hence the question...Looks good on your wrist, or keeping an eye on the resale value?

 

[TEXAS GT]

There was an old thread on this where most of us posted our horologic pride and joys. It might have been in the private section though.

As far as did I buy them for an investment, of course, but I still wear all but one and that's only because I don't like it.

I shoot my guns, wear my watches and drive my cars. I ain't saving crap for the next generation!

 

[BlackICE]

I shoot my guns, wear my watches and drive my cars. I ain't saving crap for the next generation!

Spend it quick, before Hillary takes it!

 

[B O N Y]

Did anyone catch the article about the watch auctions that appeared in last weeks WSJ?
I'll be posting a list of my watches after the list of cars, and guns that I don't own.

 

[B O N Y]

Watches are like cars, the rare watches may appreciate. Limited edition watches where they typical run is 25 to 150 units are collectable. Rolex and similar keep pace with inflation.

 

[Kayvan]

best description is forced savings....

Watches and most other like items rarely beat the SP500 over time....

That said, there are booms and busts and holy grails...

Recently "Professional Grade" and big watches (44+mm) went thru the roof...some compared it to Muscle cars as many were late 60-70s and were racing related.

Omegas 1969-74 Plo Prof Coustea 1000m Diving watch went from $1500 to $9000 in 18 months...cool emergency red button

http://www.gvlwatch.com/OMEGASEAMASTERPLOPROF.html

 

[Neilda]

I think watches are, by and large, like jewellery - as soon as you've taken it out of the showroom, take a 40% minimum hit immediately. A gold ring new might cost $2,000 - buy it and take it straight down the road for $400!

Many car guys (me included) have a collection of watches. I have some handmade watches that are quite beautiful. But investment? No. Bought for pleasure.

As previously stated, you might get lucky and find that you have a vintage Cartier or Rolex - but you would need the original box, papers etc etc.

It's also a sophisticated/mature market - so you'd really need to know what you were doing.

 

[B O N Y]

The WSJ exposed the bs that is going on at the auctions with brand owners buying their own makes and setting records.

Neil hit it on the head!

 

[Jason's Auto Spa]

Great info posted here, guys, thank you :cheers

 

[Doc]

The WSJ exposed the bs that is going on at the auctions with brand ownerd buying their own makes and setting records.

Neil hit it on the head!

I agree. I was amazed at that article.

The auction process is just a marketing tool for the watch manufacturers.

There is one watch that I'd like to have. It would have an engraving on the rear that would say "Rolex Champion". :biggrin

 

[Quickdraw]

From Kovels Comments:
===========

HANKY–PANKY AT AUCTIONS
Why did an Omega watch sell for over $350,000? A few special wristwatches have auctioned for astronomical prices in the past few years. In 2001 a Geneva auction sold a yellow-gold Patek Philippe wristwatch with perpetual calendar, moon phases, indirect center seconds and a screw-back case for $1,240,400. Since then, a 1930s platinum Patek sold for $228,900, and a Triple-date Patek sold for $1,169,555. And these are just a few of the "top dollar" watches. In April a 1953 Omega Platinum Constellation Grand Luxe gentleman's watch with diamond-set dial, self-winding, center seconds, water-resistant, original box and certificate of authenticity sold in Geneva, Switzerland, at auction for $351,000. It was the highest auction price ever for an Omega--impressive till you learn that Omega bought it. The buyer was the company, Omega Ltd. Even more frightening is that the Patek Philippe record watches listed above were sold to the Patek Philippe Company.
The Wall Street Journal (October 8, 2007) reported that there is "an alliance between the watchmakers and a Geneva auction house called Antiquorum Auctioneers." Omega bid on 30 of the 300 lots in the sale, but other bidders were not alerted to this unusual situation. The high-priced watches are used for advertising. The very high price suggests all the watches made by the company are worth top dollar because the company makes quality timepieces. We are used to smaller, less expensive auctions where the rule, in most cases, is the consignor can't bid or have someone else bid up the item. That practice is what we call "shilling." Ebay takes harsh measures with anyone proven to be shilling and in 2004 successfully charged some shillers, who were sent to jail. Once again it is "buyer beware." Bid what you think the item is worth and don't be swayed by other bidders. Although we report record prices every year, we can only list what is announced as a sale. We rarely learn who bought the item.
=========

 

[B O N Y]

Funny thing was the next day the Saturday edition was devoted to watch collecting with major ads from the luxury watch trade. Obviously the ad sales staff must have been dismayed by the article as well.

Collectables, including cars are great hobbies, but most should not be confused with investment grade products (Stocks-bonds-real estate).

Received a call from a Forum Member asking if he should buy a FGT with several hundred miles, same color and 4 options as his current car, because of potential appreciation of no/low mileage cars. It would cost him thousands of dollars to make the change. I told him to drive the wheels off his FGT, not to view it as an appreciating asset.

 

[B O N Y]

thanks for posting Harry!

 

[Gulf GT]

I am "in the business", mainly diamonds. I sell millions a year to some of the wealthiest people on the planet. I tell all of them; "It's not an investment, it's something pretty to look at and wear. The only thing you can do is buy quality for the least amount of money you can”.

 

[Empty Pockets]

"It's not an investment, it's something pretty to look at and wear. The only thing you can do is buy quality for the least amount of money you can”.

:thumbsup:thumbsup:thumbsup

 

[Neilda]

I sold a car recently at an auction (let's not say what, when and where in case the litigation button was ever hit!). It was interesting....

Bidding opened at about $30,000 and it wasn't until $115,000 that there was a 'real' bid in the room. The auctioneer was making it up.

It was incredibly skillful - but felt totally wrong. I thought it was illegal too - but I'm unsure.

Auctions scare me for this very reason, it's not the 'market' price, it's what the auction house wants. :thumbsdow

I was the winner in this instance - but didn't feel entirely comfortable about it.

 

[BlackICE]

Neil, don't feel too bad. No one forced the winning bidder to place the final bid. This stuff happens on ebay all of the time, but all much lower stakes.

 

[B O N Y]

In the auction world it is not illegal to shill bid up to the reserve amount, but not over it. It is often times called chandeleiring.... taking bids from the light fixtures and palm trees around the room.

 

[Empty Pockets]

It is often times called chandeleiring.... taking bids from the light fixtures and palm trees around the room.

:rofl:rofl:rofl

 

[SYCO GT]

Just had my 1973 Omega Speedmaster Professional Manual Wind serviced.

Cost me almost as much as what I paid (years ago) for the watch to get it serviced and gently refurbished. All genuine parts.

Looks like new. Almost too nice to wear now...