Cover Parmigiani Fleurier Tonda PF Split-Seconds Chronograph Platinum (Ref PFH916-2010001- 200182)

From the pre-owned to the brand spanking new, what determines a watch’s value?

At the beginning of 2022, a Patek Philippe Nautilus 5711A, which sells for US$35,000 retail, could be snapped up for a bank-busting US$240,000. By August, that figure nosedived to about US$190,000; slack-jawed collectors had a cryptocurrency collapse to thank—or blame, depending on whether they were buying or selling. High-end timepieces have long been favoured by high-rolling traders, so when the crypto market’s total value shrank from US$3 trillion (yes, that’s trillion) by two thirds, watch valuation experts wondered whether the Nautilus 5711A’s tailspin was an indication that the soaring second-hand industry was losing pace.

Head of region and client development for online retailer Watchfinder & Co Vivian Hau is confident that the market will hold steady. “We’re seeing an increase in the number of watch lovers bringing their luxury pieces to us for appraisal,” she says about the company’s Hong Kong space, which offers a curated selection of bestselling, vintage and limited- edition models from the likes of Cartier, Breitling, Rolex and Jaeger- LeCoultre. “When they [customers] do this, they are looking to refresh their collection and are thinking of selling or part-exchanging an existing watch or watches to make way for a new one.”

Now read: Chinese New Year 2023: The best luxury watches with the Rabbit

So, why is it that some watches hold and even increase in value, while others don’t? In collector communities, talking about timepieces as an investment is controversial—even frowned upon. When Tatler asks Bertrand Meylan, CEO of Melb Asia, which owns H Moser & Cie, Hautlence and Precision Engineering, how his company ensures the long-term value of products, he simply answers: “We don’t work that way.” Instead, Meylan and his team focus on building brands’ reputations through boundary-breaking collections. H Moser & Cie has been especially successful at attracting attention this way, having launched a parody of the Apple watch, a grass-covered pièce unique, and the Swiss Mad, which was made entirely out of cheese.

Meylan’s message to watch wearers worried about value retention: “You’re not a collector”. While watch enthusiasts have different motivations when it comes to acquiring a timepiece, the businessman strongly believes passion should always be factored into the equation. “When you get married, you don’t think about divorce. I think the majority of collectors buy watches because of the emotion they get from them. They are attracted to the movement and the design. The watch speaks to them, and if the watch happens to retain or increase its value in the long term: good for them.”

Tatler Asia
Above Bertrand Meylan of H Moser & Cie believes watch enthusiasts should be primarily driven by passion

For many, the term “investment watch” conjures up images of shifty flippers hoping to turn a quick profit, but if you’re spending hard-earned money on your first luxury timepiece, it’s important to know you’re getting bang for your buck. Surely collectors can be curious about the financial potential of a timepiece and remain passionate about the art of watchmaking—or are they mutually exclusive?

Anthony Tsang, head of marketing and digital for the Oriental Watch Company’s Greater China region, believes it’s important that watch wearers educate themselves so they’re less likely to regret their purchase. After all, a timepiece isn’t just a fashion accessory or salary indicator: it’s a statement of personal identity. “Does the watch match their lifestyle?” Tsang asks. “It’s important to always buy something that you will love and be able to wear.”

Meylan agrees. “Today’s trends are not the same as yesterday’s. What was hot a decade ago isn’t hot today and that’ll be the same in another decade’s time. Tastes and trends evolve, which is why collectors should have a diverse collection and buy watches that they feel they won’t get tired of.”

Justin Reis is CEO of The WatchBox, a global leader in pre-owned luxury watches that buys and trades from sellers. Based outside Philadelphia in the US, the company authenticates products and has sold to the likes of Michael Jordan and Giannis Antetokounmpo. “Watch collecting has blossomed beyond what was once just a niche hobby, and the increased interest and demand have contributed to a healthy and active secondary market,” he tells Tatler. “Top-tier brands with a robust history, dedicated collector following and recognisable aesthetic have performed the strongest over the last 10 years.” A brand’s reputation undoubtedly plays a huge role in determining its future value, says Meylan. Novelties from Audemars Piguet, Patek Philippe and Vacheron Constantin, which are also known as the “Holy Trinity” or the “Big Three”, will always go up in value. Regardless of the model, having one of these logos slapped onto the dial is an assurance that your money has been well spent. That said, there’s been extraordinary enthusiasm for independent watchmakers in recent years, particularly FP Journe, De Bethune, Greubel Forsey, Grönefeld and (you guessed it) H Moser & Cie. Reis says: “Market values have sharply risen as collectors recognise the artistry, ingenuity and extreme scarcity of these watchmakers’ collections, and we anticipate continued strength in the long term.”

Anniversary and milestone watches like the Omega Speedmaster Moonwatch are also a good bet, as is wrist candy that looks unexpected because of unique moon phase indicators or dial colours that aren’t usually offered by that manufacture—the Tiffany Patek Philippe Nautilus, anyone?

Even an unassuming watch can be worth a pretty penny if it’s powered by an exceptional movement. “Brands that develop their own calibres often produce the most sought-after watches when compared to those that resort to movements produced by large-scale manufactures,” says Hau. Jacob & Co, for example, has unveiled the hand-wound Calibre JCAM45 for its new Epic X. Featuring a balance wheel with regulating screws, the mechanism can be admired alongside Clous de Paris bridges through the open-worked dial. “Watches with well-finished movements require a lot of time and effort,” says Hau. “Special details such as deep hand bevelling and mirror polishing are difficult to achieve and therefore expensive, rare and desirable.”

Reis notes that rarity alone doesn’t spell demand: assessing both the aesthetic condition and mechanical health of a watch is also important. The WatchBox evaluates, authenticates and brings watches as close to “mint condition” as possible before offering them to clients. “Trust, authenticity and condition are some of the most important factors to consider when buying a collectible watch.” In instances where a watch is well worn, case components, bracelets, straps, clasps and pin buckles can be damaged. Mechanisms may also need attention if a watch has been improperly serviced.

Tatler Asia
Above Vivian Hau of Watchfinder & Co says watch prices can be very subjective

Watchfinder & Co has been specialising in second-hand luxury watches for nearly 20 years. “Collectors should buy pre-owned watches from a renowned and accredited company that will help you certify and refurbish [the watch], and provide you with all necessary professional after-sales services,” says Hau. To ascertain a watch’s financial value, collectors should be confident that their collection is authentic and in proper working order, which can be difficult if working with an unknown seller. It’s additionally important to keep the original box and papers, which show the product reference number or model and the serial number of the watch. “Collectors often treat original warranties as if they are birth certificates,” says Reis. “They help to confirm authenticity and ownership, and can play a significant role in determining secondary market value. Many collectors only look to buy pre- owned watches that are ‘complete’ with box and papers.”

Ultimately, price tags are figures that fluctuate over time. “Watches are like wine. Different people may have different perceptions of the same watch and value it differently. A higher price does not necessarily [mean] a better watch,” says Hau. Tsang agrees. “Watch prices aren’t always what they seem, and, at times they can be highly subjective. The reality is that there’s no exact formula to determining a watch’s value.”

So how do we avoid being burnt? “If you find a deal that’s too good to be true, it probably is,” says Reis, adding it’s important to curate a collection that personifies you. “If you truly love the watches in your collection, you won’t be disappointed if they don’t increase in value. If you only purchase them because of the hype or speculation, you’ll regret it.”

Topics