Investment luxury watch: What should investors know

After the economic crisis and the consequent fear of inflation, many investors are now focusing on new investment opportunities, such as gold, real estate and luxury watches. In insider-circles luxury watches are considered to be an investment with a high yield prospects.

Alfredo Paramico, a banker from Milan, founded the first watch investment company in 2010. Its share-index grew in the first half of 2012 by 18.2 percent. In comparison, the S + P stock index only grew by 11.2 percent within the same period! That means a special luxury watch can increase its value significantly within a few years – regardless of the economic situation.

What should investors know:

No one can say for sure which increase of value a luxury watch will show over the time.
Some models win particularly on value because celebrities are wearing them in public. The watch should definitely be a limited edition and should be undamaged. Individual designs and exceptional features are additionally increasing the value. Also a high quality finishing like Diamond-Like-Carbon-Coating can increases the value. Investors should therefore not only look for specific brands but also for refined luxury watches.

Collector watches – this is what matters:

1. Certificate of Authenticity

2. Limited Edition

3. Mechanical and independently-produced movement

4. No scratches or damages

5. Regular maintenance

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