Are luxury investments the smartest way to wear and protect your wealth?

That’s not to say investors shun unusual or one-off items—the dynamic shifts at the top end of the market, where collectors with deeper pockets are moving beyond broadly tradeable names towards pieces of genuine historical scarcity. Thomas Perazzi, head of watches for Asia at auction house Phillips, says, “Collectors are becoming more selective, reallocating towards rarer pieces and positioning top-tier watches as stores of value alongside shares and gold.” At Phillips’ most recent Geneva Watch Auction in May, 14 timepieces crossed the CHF 1 million mark. A single Patek Philippe—the Ref. 2523 “South America” worldtime—sold for over CHF 7.96 million (US$10 million), setting a world record for the reference and becoming only the third vintage wristwatch ever to pass that threshold.

Perazzi points to the breadth of today’s buyer base as part of what makes the category so resilient. “Participants in our auctions now come from more than 80 countries, and we are seeing a growing share of younger buyers,” he says. “Watches are increasingly seen as a store of value that travels with you— recognised and tradeable anywhere in the world.” That global reach is a large part of why the market holds up when other assets waver.

The Knight Frank 2025 Wealth Report showed a 147 per cent rise in watch prices over ten years, outpacing vintage cars at 118 per cent and diamonds at 13 per cent. It further reported that the US$10,000 to US$20,000 investment range “represents a sweet spot where investment potential outweighs rarity”. Gold prices have added fresh impetus: full-gold bracelet watches are attracting buyers who understand that the metal content alone is worth considerably more than it was two years ago.

Read more: The best tennis bracelets to wear to Wimbledon 2026

Jean Ghika, Bonhams’ global head of jewellery, makes the same argument for jewellery—that it can protect and grow wealth outside the stock market, with one particular phrase doing considerable work in wealth management circles: hybrid asset. “Historically, jewellery has been viewed as a safe haven in periods of political and economic uncertainty. Many collectors see it as a hybrid asset, combining emotional resonance with intrinsic and market value.” What this means in practice, she says, is that, “Clients often look to diversify beyond traditional financial instruments, with jewellery collections functioning as tangible, wearable wealth.” The strongest auction interest centres on antique and art deco jewels alongside coloured gemstones, all with decisive provenance. “There is a focus on signed pieces from the leading jewellery houses, with provenance continuing to play an important role. Exceptional pieces are inherently scarce, and when they do appear, they tend to in practice, is also about being able to sell when you need to: pieces in prime condition trade far more reliably in any market.

The numbers at auction reinforce the appeal. Sell-through rates at top Phillips watch sales have held at close to 100 per cent, even during periods of wider market turbulence—meaning almost everything that goes up for sale, sells. “Trophy watches increasingly function like blue-chip shares,” says Perazzi. “Buyers are prioritising provenance, rarity and historical significance qualities that hold up in difficult times because they offer something no financial product can replicate: something beautiful to own while you wait.”

Another critical consideration is where these assets physically live. The rise of private secure storage has tracked the broader surge in tangible asset ownership: specialist vault operators across London, Geneva and Dubai have reported sharply rising demand, driven by high-net-worth clients who want their gold, watches and jewellery held outside the banking system entirely accessible, insured and attract competitive bidding, often achieving pricing that exceed pre-sale expectations.”

The word she returns to is condition. “Collectors are placing increasing emphasis on rarity and overall quality, with condition remaining a critical factor in any acquisition.” Buying only pieces in excellent condition in practice, is also about being able to sell when you need to: pieces in prime condition trade far more reliably in any market.

The numbers at auction reinforce the appeal. Sell-through rates at top Phillips watch sales have held at close to 100 per cent, even during periods of wider market turbulence—meaning almost everything that goes up for sale, sells. “Trophy watches increasingly function like blue-chip shares,” says Perazzi. “Buyers are prioritising provenance, rarity and historical significance—qualities that hold up in difficult times because they offer something no financial product can replicate: something beautiful to own while you wait.”

Another critical consideration is where these assets physically live. The rise of private secure storage has tracked the broader surge in tangible asset ownership: specialist vault operators across London, Geneva and Dubai have reported sharply rising demand, driven by high-net-worth clients who want their gold, watches and jewellery held outside the banking system entirely—accessible, insured and beyond the reach of institutional risk. IBV International Vaults, which stores everything from gold bullion and coins to watches, art, fine jewellery and even cryptocurrency hardware wallets, is one such operator.

Sean Hoey, gold London manager at IBV, explains that the company’s client base expanded by 121 per cent year-on-year in 2025, driven partly by rising street theft targeting watches and handbags in London, and partly by soaring gold prices drawing international investors to London’s stable legal infrastructure. With a hub also in Dubai, IBV Gold clients can “diversify geographically, benefit from tax-efficient gold ownership, hedge against currency depreciation, and access their assets seamlessly as they move between regions.

“We anticipate increased demand for luxury storage, most notably for gold, from businesses, family offices and individual investors. Across each of these groups, there is a growing demand for gold as a dependable reserve asset that helps diversify portfolios and mitigate financial risks,” he says. The infrastructure includes biometric iris scanners, AK47-rated ballistic glazing, and 24/7 surveillance, with up to £1 million in complimentary insurance.

While there is much to be said for the relative stability of such alternate investments, Von Bergen does advise some caution. The watch market corrected sharply after the pandemic-era peak of 2022, and he is candid about having entered at that peak. But the longer view holds. “I’m fairly confident that [, for example, luxury watches] will grow in emotional value over time, as they did before.” He says the market has returned to being driven by people who genuinely want the watches, rather than those who were simply betting on prices going up—a healthier place from which to grow. On the broader question of risk, Von Bergen says: “If I would tell you today, this particular watch would never drop in price, I would be lying to you. There’s no guarantee. As with any financial product, there are market shifts, trend shifts, demand shifts which you can’t predict.”

Perazzi’s read on where this is heading is straightforward. “Collectors are repositioning watches as a kind of hybrid asset— part store of value, part cultural object, and part way to spread risk alongside shares, gold and art,” he says. “The decisions being made now are driven by the same logic people apply to any financial portfolio.” High-quality timepieces, he argues, are increasingly functioning as wearable wealth: assets you can enjoy today and sell tomorrow.

With JP Morgan in May still forecasting gold prices moving back towards US$5,000 by year-end, the case for tangible assets is as compelling and even stronger than it has been in years. What is shifting, alongside the price of gold, is who is paying attention. The Daytona, the art deco brooch and the gold bars stored in a Mayfair vault were once the preserve of collectors and family offices. In 2026, they are being reappraised by anyone who has grown tired of watching a carefully built portfolio rise and fall entirely with the stock market, with nothing to cushion the swings.

NOW READ

Patek Philippe reveals two unique Rare Handcrafts pieces ahead of its Milan Watch Art Grand Exhibition

Priyanka Chopra Jonas’s style evolution, from Bollywood’s fashion icon to Rolex testimonee

How to typhoon-proof your jewellery box without sacrificing an ounce of glamour