Why is Demand for Luxury Watches Rising?

During times of economic uncertainty, when inflationary forces are cutting real earnings, the price of certain items tends to remain stable – and in some cases, even be pushed upward. Those with lots of cash to spend are incentivised to invest that cash in items with resale value – and there are few items that fit the bill better than a luxury watch.

The right watch is extremely portable, and will confer a lot of prestige upon the wearer. Pre-owned watches will tend to hold their value even better, since the premium attached to a brand new watch won’t be a factor.

Growth markets

Certain parts of the world, like China and India, are experiencing sustained economic growth, which is helping to drive up worldwide demand for luxury items like watches. As more people in these markets come into money, those big-name manufacturers are producing products that will cater to their needs. In both countries, the annual growth rate for this market is well into double figures.

Material factors

You might think of a mechanical wristwatch as something that’s been perfected long ago. But the truth is that new manufacturing methods, and advances in materials, are helping to make the watches of today much more impressive than their predecessors. This is helping to drive up demand, especially among extraordinarily wealthy consumers who want the latest and greatest innovation.

Endorsements

Luxury manufacturers like Patek Philippe and Rolex tend to command an enormous amount of prestige – and it’s this prestige that keeps people buying from these names. The endorsement of certain high-profile influencers, musicians and actors has helped luxury watches to break into demographics that might otherwise not be interested in them.

Jay-Z, for example, has his own signature Audemars watch – to match with his extensive collection. Thus, fans of Jay-Z become more likely to invest in watches from this brand – or in luxury watches more generally.

What to consider when investing?

Perhaps the most important consideration when you’re buying a luxury watch is your own personal taste. After all, you’re going to be wearing this item, and so you’ll want it to match your style.

We should also think about the money you’re going to be spending on insurance and security. Having invested thousands of pounds in a watch, you’d be well advised to spend a few hundred more on an appropriate safe.

If you lack experience in this market, then it’s a good idea to seek the advice of an expert. This is where luxury watch brokers come in. They’ll be able to point you in the direction of an item that matches your personal tastes and budget. Don’t allow yourself to be pushed, however!