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Characteristics of watches as investments

In our latest article we learned the things  to know about making the decision to buy a watch to form part of your investment portfolio. Let's discover the characteristics of watches as investments. 

Watches, like many passion investments, don’t produce an income during the period of time in which you own them. There are three other main factors to consider when investing in watches.

A. Liquid for some watches, highly illiquid for others

There are a number of different ways that you can use to sell your watch when the time has come to turn your investment back into cash – we cover that later on in the article. Some methods are more expensive than others and, unless your watch is of a highly desirable make and model, you might want to take the less expensive routes.

If you have a vintage watch, you may find it difficult to sell it via an auction house. Speaking tothe New York Times, Massimo Monti, a principal at independent advisory company Rasini & C., said that “auction houses pick their watches one by one, creating a bottleneck in the market..It could take 15 to 18 months...Right off the bat, there is a liquidity problem.”

B. Care and maintenance

As we saw earlier, part of the value of a watch is determined by its condition. Particularly if you choose to wear your watch every day or occasionally, you should take care to make sure that the surface and the interior are clean.

Don’t clean non-water-resistant watches – keep them away from moisture at all costs. Clean any water-resistant watch bracelets with a toothbrush and slightly soapy water. If you do decide to keep your watch on when you’re in the water, make sure all the knobs on the side are pushed down and screwed in as tightly as possible.

Keep your watch away from situations where they could be exposed extreme temperature. Keep them away from magnets and chemicals and take care that your watch doesn’t accidentally strike forcefully against any hard surface.

Experts recommend that you take your watch in for servicing every three to five years.

C. Insurance

There are many different insurers offering specific insurance for luxury watches which don’t require you to purchase home or other insurance to benefit from the protection.

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Stay tuned for our next article! We will let you know of the different approaches you can use to invest in watches. 

 

 

There is a multitude of new and exciting ways to invest your money today. Here at Planet of finance we keep track of the most relevant developments to signal them for you. We are the ultimate meeting place to discover, connect and learn about the latest topics relating to your financial wealth.

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