Luxury watches just like any other commodity decrease in value over time. However some wristwatches go down in value a lot faster than others. Brand new luxury watches are priced really high and never cost less than three or four thousand dollars. A lot of consumers that buy luxury watches do not really care about the depreciation in value factor and only look at the watch design and the price tag. There is nothing wrong with buying luxury watches based only on their price tag or design. However doing so consumers may get frustrated to see their luxury watches depreciate in value so drastically. Of course that happens only when consumers try to sell their wristwatches. But most consumers sooner or later tend to sell or trade-in their luxury watches for new ones so losses can be very costly.
Depreciation in value depends on various factors, however number one factor is of course the watch brand. A luxury watch brand that is extremely famous and is associated with luxury, prestige and high quality will have a better resale value on their watches. For example, Rolex watches do not decrease in value as fast as Piaget watches do. As a matter of fact Rolex watches are the best at keeping their resale value. And not surprisingly so, since Rolex watch company is so famous that almost anyone can tell that this watch brand manufactures luxury and very prestigious watches. However, Rolex watches are not the only ones that keep their resale value greatly. Watches from brands like Audemars Piguet, Omega, Vacheron Constantin, Breguet, Officine Panerai, Jaeger-LeCoultre, A. Lange & Sohne, Cartier, IWC, Breitling and Patek Philippe can keep their resale value greatly too.
Another important factor why watches keep their resale value greatly is the rarity or scarcity of a watch.Limited edition watches from famous luxury watch brands tend to be in a lot of demand. Since only a certain amount of them will be manufactured, lets say only one thousand, watch collectors and watch enthusiasts could be in a big interest about it. Just like with any other commodity limited edition always means eventual scarcity of an item. For example, a lot of luxury watch companies manufacture limited edition watches and some times even anniversary edition watches. All this makes watches very collectible and in a big demand especially when all edition is already sold out. For example, watch brand Audemars Piguet manufactures a very collectible Royal Oak Offshore Chronograph watch. This watch keeps it’s resale value greatly. Another example is a watch brand Breitling and their watch collection Breitling for Bentley. Watches from the collection Breitling for Bentley are very popular and collectible and keep their resale value greatly.
Precious metals like gold and precious stones like diamonds do not help with keeping great resale value of the watch. Gold and platinum made watches usually depreciate in value a lot faster than stainless steel ones. The same watch model that is made of eighteen karat gold will depreciate in value faster than the same watch model made of stainless steel. Watches that are decorated with precious stone like diamonds, sapphires or rubies depreciate in value a lot faster too. Also customizing luxury watches with precious stones will not help with keeping great resale value. For example, customizing a wristwatch with aftermarket diamond bezel, diamond dial or even custom paving and decorating the watch with diamonds.
Purchasing brand new luxury watch, just like any other valuable item, should require at lest some basic research. Investing time to learn more about the watch brand and popularity of a watch brand amongst watch enthusiasts or watch collectors can help in making the right decision about the resale value of a watch. When purchasing a luxury wristwatch think of it as investment and not just a regular buy.
