What Is an Automatic Watch and How Does It Work?
Luxury Timepieces Outperforming Traditional Assets
A new Swiss study has confirmed what many collectors and enthusiasts have long suspected: luxury watches are not just stylish accessories—they're increasingly solid investment vehicles. Conducted by a consortium of Swiss economists and horology market analysts, the study reveals that high-end timepieces, particularly from brands like Rolex, Patek Philippe, and Audemars Piguet, have outperformed traditional assets such as gold, stocks, and real estate in several key metrics over the past decade.
Key Findings From the Study
Value Appreciation: Between 2013 and 2023, luxury watch prices increased on average by 7–10% annually, with some models appreciating by over 200%.
Resilience During Market Turmoil: During economic downturns—such as the COVID-19 pandemic—watch values, especially for rare and highly sought-after models, remained stable or even climbed.
Limited Supply + Global Demand: Brands like Rolex intentionally limit production, creating scarcity that fuels secondary market premiums. This dynamic mirrors classic economic principles driving asset inflation.
High Liquidity: Unlike niche collectibles, luxury watches enjoy a robust secondary market across global platforms, making them relatively easy to resell.
Low Maintenance Compared to Other Assets: Unlike real estate, watches require minimal upkeep, and service intervals are typically every 5–10 years.
Top Performing Investment Watches
The study highlighted a few standout models that consistently deliver strong returns:
Rolex Daytona (especially Paul Newman variants)
Patek Philippe Nautilus 5711
Audemars Piguet Royal Oak “Jumbo”
Rolex Submariner (particularly vintage references like 5513 and 1680)
Rolex GMT-Master “Pepsi” and “Batman” models
These watches benefit from both historical significance and contemporary demand, often commanding premiums well above retail on the pre-owned market.
Why Watches Are Gaining Ground Among Investors
Luxury watches offer a tangible, wearable asset that’s deeply tied to global culture, status, and craftsmanship. Unlike stocks or crypto, you can enjoy a watch every day, while it quietly appreciates in value. And in a world increasingly concerned with inflation and diversification, more investors are viewing timepieces as portable wealth.
According to the report, watch investing has become especially attractive to younger demographics. Millennial and Gen Z collectors, driven by digital platforms like Instagram and YouTube, are not only fueling demand but also reshaping market perceptions. They're treating watches like sneakers, NFTs, or art—only with centuries of heritage and mechanical genius behind them.
Caveats and Considerations
While the outlook is bullish, not all watches are created equal. The study advises:
Buy the Right Brand and Model: Focus on heritage brands with limited production and strong resale histories.
Condition and Provenance Matter: Original papers, box, and documented service history can significantly increase value.
Avoid Overpaying: Just because a watch is trending doesn’t mean it will hold its value. Do your research or consult a professional before investing.
Final Word: Timepieces With Staying Power
The Swiss study affirms that fine watches are no longer just a symbol of taste—they’re becoming legitimate financial instruments. For those looking to diversify a portfolio or invest in something tangible, elegant, and timeless, luxury watches offer an appealing option.
Whether you’re eyeing a vintage Submariner or a new Patek Philippe Aquanaut, the message is clear: Buy wisely, wear proudly, and watch your investment tick upward.
