The watch industry is adapting to the cultural change that we are experiencing in consumption, in which the new commercial channels have eliminated the stigma associated with the exchange and sale of second-hand products, also in luxury items.
What until now was strictly reserved for collecting becomes little by little, a growing practice among users of high-end watches, either by hobby or in many cases, by investment, being items that can be significantly increased in value long-term.
According to the latest Luxury Investment Index of Knight Frank (KFLII), investment in vintage watches grows throughout Europe as a refuge value due to its high profitability in the short, medium and long term, especially if we take into account that profitability at 10 years exceeds 66%.
Thus, the investment in second hand watches, despite not being so well known by the general public, is totally comparable to that of classic cars, wine or art.
A good watch brand like Panerai, Rolex or Breitling, is an object of worship, transmits emotions, is immune to ephemeral trends and increases its value over the years. Some experts predict a growth of this type of investments given that, that of vintage watches is a relatively new market to have an age of only 25 years.
In fact, there are specialized investment funds within the sector, which as ‘Precious time’, can offer annual returns of 15%. According to the same fund, 70% of the investments in the next few years will be made in vintage watches, while the rest will go to modern watches.
The vintage watch brands will always be in competition, not solely because of their technology but because of the luxury and personification offered.
One of the vintage brands best known to the general public that offer greater profitability is the luxury brand Patek Philippe. The Christie’s auction house has sold about twenty of these watches worth more than a million dollars each.
Other Patek Philippe pieces have broken records, as was the case of the reference model 1527 manufactured in 1943 whose price at a Christie’s auction reached 4.5 million euros.
The vintage watch is fashionable
Brands know that vintage is fashionable and not oblivious to it, squeeze icon models at limited edition prices. The 2017 edition of the BaselWorld trade fair, the quintessential event where the watch industry presents its novelties year after year, which was held in Switzerland 2 years ago, has served as a thermometer for this phenomenon.
In the edition, the great novelties of the main luxury brands focused on the reissues of vintage models, imitation of packagings of the time, emulation of aged materials and simulated tropical dials, among others.
The vintage watch collection has an added benefit to investment and profitability: to be able to enjoy watches on your wrist every day. Certain brands and models icon, has high revaluation and demand rates. There are always opportunities to invest in this market, something that some investors might not imagine.
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