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