With the proliferation of time, technology, and mankind, comes what is considered the modern-day investment. Found in pristine (and not so pristine) red and green boxes is the current choice of asset expenditure far beyond the mere stocks and bonds of Wall Street: the timepiece.
The luxury investment ‘movement’ may seem to have started with the Birkin, but watch collecting has been fueling the market for decades. And though it might be easier to understand than NASDAQ, the resale market is just as volatile. If you’re new to the game, there are several variables to consider when buying, selling, or investing in a preowned timepiece, some seeming to contradict others.
Because of the internet, the pre-owned watch market is projected to total around $30 billion by 2025, which means learning how to navigate it can be overwhelming. There are three major watch brands to consider that continue to keep their value in a turbulent market: Cartier, Rolex, and Omega. If you plan to buy a pre-owned piece from any of these watchmakers, here are a few things to know.
Legacy and historical significance
Some watches weren’t supposed to be successful. Audemars Piguet’s Royal Oak and Patek’s Nautilus were both considered ugly (in today’s terminology, that would directly translate to “fu-go”) watches at the time. But that’s only because it went against the cultural norm. But in today’s climate, these brands can do wrong. Their value has grown so exponentially that any certified pre-owned (CPO) watch from these brands is seemingly unattainable.
Omega, on the other hand, has been creating some of the most sold and most searched collections on the resale market. The Moonwatch was notorious long before its collaborated debut of the MoonSwatch last year. When NASA deemed Omega’s Speedmaster as the only wristwatch suitable for space travel in the 60s, the tectonic plates of the watch zeitgeist shook. Since then, the watch has been on every hot list, wish list, and A-list celebrity, guaranteeing it a sound investment.
Vintage appeal
No one buys a Cartier for its movement. Regardless of the resale or retail market, the more complicated a watch is, the higher its value. However, the vintage appeal of certain timepieces can significantly influence price, availability, or both.
The greater age of a watch can demand higher price points since it captures specific designs, movements, and mechanisms that are no longer in use or are difficult to copy. For watch collectors and hobbyists, getting a hold of vintage pieces is a major addition to acquire. Vintage pieces are more likely also to be rare, often having a limited supply.
But on the flip side of the vintage marketplace are many affordable options at starting prices. Vintage Cartier Tank’s can be found for around $2000 depending on the quality, and you can score a Panthere de Cartier for around half the price of its retail value.
Supply/Demand
Supply and demand issues aren’t exclusive to vintage watch collecting. But, because of the resale market, you can still buy a Rolex. You’ll just have to pay more for it. Ultimately, its value is decided by the consumers and its highest selling price. Rolex’s aren’t rare, but very much the opposite, and its abundance on wrists, culture, and economics has earned it a cult following, that combined with collector demand, has inflated prices. Pre-owned pieces can often sell for more than their retail value, even with hundreds of the same reference number available.
As a result, there’s an abundance of fakes as well. Collateral damage to heightened demand and decreased supply means many fake Rolex’s are disguised and circulating the resale market. Ensuring certification and buying from authorized dealers is imperative. Rolex has also just launched its new endeavour as a certified dealer of pre-owned Rolex pieces, making it easier to source real pieces.
4 CPO Watch Buying Rules of Thumb:
Seek Authorized Dealers and Private Sellers: Some luxury watch retailers offer CPO watches in-house. Though this is the best option for guaranteed authenticity, cons include higher price tags and limited selection. CPO dealers, private sellers, and peer-to-peer marketplaces offer authenticity while leaving space for better deals, negotiations, and creating relationships.
Assess condition: If you’re buying a watch online, assess the photos provided but also seek more information through email or DM. A watch in excellent condition may demand a higher price, and pieces in poor condition offer more room for negotiation. Just keep in mind that the more vintage a watch, the worse its condition. If it’s very rare or in demand, it can still have a higher cost that’s reflective of its value.
Seek a professional’s opinion: Second opinions never hurt, especially if you’re unsure of pricing, condition, and authenticity. Advice from experts, watch connoisseurs, and even online hobbyists provides deeper insight into validating your next purchase.
Authentication and documentation: Proper documentation, including original papers, certificates of authenticity, proof of purchase, service history, and even packaging material solidifying authenticity. They also help maintain the value of a timepiece if you ever decide to sell it in the future.
Understanding the Appeal of CPO Watches:
Certified Pre-Owned watches have gained popularity for good reason—they offer an opportunity to own a high-quality timepiece with a storied past at a fraction of the cost of a brand-new equivalent. These watches, carefully inspected, serviced, and authenticated by experts, often come with a warranty, providing peace of mind to the buyer.
Defining Your Style:
Before delving into the technicalities, take a moment to define your style. Are you drawn to the timeless elegance of vintage watches, the modern aesthetics of contemporary designs, or the robust functionality of sports watches? Knowing your preferences will narrow down the options and make the selection process more enjoyable.
Establishing a Budget:
Determining a budget is a crucial step in the watch-buying journey. CPO watches offer a range of options to suit different budgets, making luxury timepieces more accessible. Be realistic about your financial comfort zone and explore CPO collections that align with your budget while maintaining the quality and brand reputation you desire.
Researching Brands and Models:
As a beginner, it’s essential to familiarize yourself with renowned watch brands and their iconic models. Researching the history, reputation, and key features of various brands will empower you to make an educated decision. Consider factors like craftsmanship, movement types, and design elements that resonate with your personal taste.
Choosing a Reputable Seller:
Selecting a trustworthy and reputable seller is paramount when purchasing a CPO watch. Look for dealers or platforms with a proven track record of authenticity verification, transparent descriptions, and customer reviews. Reputable sellers often provide detailed information about the watch’s condition, service history, and any included accessories.
Inspecting Certification and Documentation:
When considering a CPO watch, thoroughly review the provided certification and documentation. A comprehensive set of paperwork, including the certificate of authenticity, service records, and warranty information, adds credibility to the purchase. These documents not only ensure the watch’s authenticity but also offer insights into its maintenance history.
Examining the Condition:
The physical condition of a pre-owned watch is crucial. Look for any signs of wear, scratches, or damage on the case, bezel, and crystal. Assess the functionality of the crown, buttons, and date change mechanism. A reputable dealer will provide detailed images and descriptions to help you make an informed decision about the watch’s condition.
Negotiating and Finalizing the Purchase:
Don’t hesitate to negotiate the price, especially when purchasing from an authorized dealer or a reputable online platform. While CPO watches already offer excellent value, there may be room for discussion, especially if you have done your research and identified comparable market prices.
CTA: Or, let me do it.
Message me the details of what you’re looking for and I’ll get back to you ASAP.
