Could your watch now be worth more than your car?
Keep a close eye on its value.
Find out why…
Watches encapsulate craftsmanship, technical brilliance, innovation, aesthetic value, rarity, heritage and sometimes, provenance. Whether buying a gift for a special birthday or anniversary, or perhaps a keen horologist, it is not hard to see why so many of our clients opt for brands such as Rolex, Omega or Patek Philippe when investing in a high quality time piece. Whatever the way you come to own such a watch, its important you stay up to date with the current market, as replacement values have rocketed in the last twelve months.
Combining craftsmanship with a mastery of technical precision, certain watches have become the ‘Holy Grail’ for collectors. If they are part of a limited edition or production has stopped, as it has for the Patek Philippe Ref. 5711 Nautilus, they increase dramatically in price.
Take the Rolex Daytona for example. In December 2016, the steel version of the Daytona sold for an average retail price of around £14,200. The price steadily rose from 2017 to 2020 as one could expect from a luxury watch by a well-known iconic brand such as Rolex, however, at the beginning of 2021, the market saw the price of a Daytona dramatically increase to over £30,000,1 a profit in just five years of nearly £16,000.
It is not just the stars of the timepiece ‘show’ which increase in value. A Rolex bought for approximately £5,000 – £8,000 a few years ago, is now likely to be worth around £9,000 or more. Previously less popular watches such as the Rolex Air-King is now becoming very fashionable and reflected in prices currently reaching 40% above its list price. In the last 12 months the Rolex Oyster Perpetual has seen the most significant increase in cost. Initially designed to be a lower cost luxury watch, the colourful dials became a ‘hit’ with customers and the value skyrocketed from around £5,000 to approximately £20,000 2.
Popular watch brands with a high return on investment
As a rule of thumb, the rarer the watch, the more likely it is to increase.
Rolex sports watches are likely to increase in value and at the very least, hold their value. Collectors love the various unique features in a Rolex which are also practical, such as ceramic bezel inserts and hour markers which are individually set by hand.
Patek Philippe aficionados fall in love with the unique yet understated elegance synonymous with this brand. Each year, 62,000 3 pieces are made. It is not as flashy as the Rolex, but it holds its own when it comes to rising prices. An original Patek Philippe Nautilus 1970’s watch cost just under £2,500. Today it is worth more than £41,000 4. Some modern Patek Philippe Nautilus (especially the Ref. 5711) pieces were valued at more than £200,000 three to four months ago, and although they have recently slightly dropped in value to around £150,000, if you do own a Patek Philippe Ref. 5711 Nautilus or in fact any Nautilus models, keep a close eye on its value as this model was discontinued last year. Even a lower value Patek Philippe will command a price of around £30,000 so it is worth keeping an eye out.5
Why have prices skyrocketed?
Supply – COVID affected all business, including watch production. There has always been a waiting list for many luxury watches, some would say a situation created by manufactures to ensure exclusivity and drive pricing up. With production having ground to a halt for so long however, and demand continuing; even increasing, this has only served to extend the waiting list even further. As such, the second-hand market has boomed, with prices having done the same.
Patek Phillipe Nautilus
Popularity and rarity – The Rolex Daytona and the Patek Philippe Nautilus are two of the most popular watches in the world at the time of writing, and it is a case of “if you’re not on the list, you’re not coming in,” with the waiting list for the Rolex Daytona and GMT-Master II now stretching to 5 years 6. Meanwhile the Patek Philippe Nautilus is simply not available anymore. Low supply, high popularity and a lack of pieces available for purchase, results in even greater increases in value.
Global market – Since watch sale auctions have moved to online channels, the market has expanded, bringing more and more buyers into the mix, all vying for the same stock. Almost like artwork; something is worth what a person is willing to pay for it.
Economic downturn – Precious metals such as gold have become popular during times of economic crisis or uncertainty. As a result, the component values in many watches will also increase. Some buyers may even see investing in a gold watch as an opportunity for a good return on investment.
Are your watches properly insured?
If you do choose to wear your investment (and why not?), you might be so attached to your exquisite timepiece that you don’t want to let go of it, even for the healthy profit we have just seen. Either way, it is important that it’s properly insured. Recent price increases could mean it is drastically undervalued. Best case scenario if you have to claim? The amount you receive from the insurer may not be sufficient to replace it and/or you will lose the benefit of your investment. Worst case scenario? It may not be covered at all.
For some watches, checking replacement values online may be sufficient, but for many it is worth getting a reliable valuation from a professional valuer who really knows the market.
Omega Seamaster
Are you underinsured? ‘Not on our watch.’
If the value of your watch has increased, it’s important to make sure the limits of cover remain sufficient. On most policies, there are two key limits to be aware of:
- The single item limit – which is the maximum amount the insurer will pay for any one item.
- The total cover for all high-risk items (sometimes referred to as ‘valuables’) in the house.
If your watch has exceeded the single item limit, it will need to be specified on the policy at its specific replacement cost, with an up-to-date valuation to support this figure.
Whether you need to specify it or not, if the total value of all the high risk/valuable items in the house now exceeds the limit of your specific product, you will need to seek an increase from the insurer or potentially change products.
Get in touch
If you are already insured with us and are uncertain how this might affect you, please give us a call and we’ll guide you through what you need to know.
Call us on 01787 888415
If you don’t have your home insurance with us and you’re worried that your current policy might not be suitable, or the insurer is applying additional policy clauses, please get in touch. We’ll happily help source something more appropriate.
Call 01823 761085 (New clients)
Email: listed@lloydwhyte.com
- https://monochrome-watches.com/market-analysis-continous-insane-rise-in-price-of-the-rolex-daytona-116500ln/#image-gallery-3
- Alastair Meiklejon (Senior Value and Wristwatch Specialist at Doerr Valuations) outlined this in a telephone call and email 8th-10th August 2022
- Forbes Website
- https://www.christies.com/features/5-reasons-collectors-love-Patek-Philippe-7390-1.aspx
- Alastair Meiklejon (Senior Value and Wristwatch Specialist at Doerr Valuations) outlined this in a telephone call and email 8th-10th August 2022
- https://www.watchmaster.com/en/journal/news-en/rolex-waiting-list-watches-with-the-longest-waiting-times
