Home Discover Journals Do some luxury watches actually appreciate in value with time?

Do some luxury watches actually appreciate in value with time?

By Finserv MARKETS - Aug 12,2019
Views Icon418 Views 0 0 Comments

Do some luxury watches actually appreciate in value with time

For decades, watches have evoked a sense of luxury – we have often attached societal notions like wealth and status to them. But there’s more to the dial on our wrist. They also carry investment value and appreciate in value over time, depending on the features the watch carries. People were known by their watched – the Rolex guy, the Cartier guy, the Omega guy. There were people who were watch collectors. Watches have evolved with changing times. We now have the smartwatches that do more than just the time. They are fitness trackers, tools, remotes and full-fledged gadgets in their own right. The watch has changed its personality from the classy and royal gold and silver watches to electronic devices that multitask, but the charm hasn’t gone away. If luxury watches have been your thing, your earlier expenditure of the gold price of watches may have changed into an expense for premium features, but the sentiment is still the same. A band on the hand emanates power.

What’s the catch, though? Despite their high-value feel, they are an accessory – at the end of the day. Therefore, most of the inflated demand comes from the status and hype it builds. While watches follow cyclical trends, as an investor, you’re not looking to wait over 20 years for the watch to come back and make headlines.

Here’s where alternative options like investing in digital gold and gold ETF come in. Investments channelled towards digital gold and gold ETF will help towards hedging inflation rates. If included in an investment portfolio, it would help in reducing your risk exposure that comes from other instruments like equity and mutual funds. Then you have digital gold, that surpasses all these modes.

Digital gold would allow investors to buy and sell gold anytime they want. It even tackles the accessibility problem that comes with the gold price. More often than not, you will need to buy at least 1 gram of gold when you buy physical gold. With the current gold price, this would come to about Rs. 3,606. However, investors can buy and sell digital gold for as little as Rs. 10. By investing in a gold ETF, investors can gain exposure to gold prices by buying and selling funds that are traded on an exchange. These funds primarily invest in gold and gold-linked assets. At Finserv MARKETS, investors can buy gold online in two simple steps: log-in and make the payment.

Gold, not enough sheen?

In case you’re still wary of investing in digital gold or gold ETF, and would rather opt for luxury watches, there are several pointers you will need to consider. For starters, the brand plays a huge role. Investing in a Rolex watch would be like buying stocks in Microsoft or Apple. Buying an obscure brand is a risky jump, particularly one where you are not able to evaluate performance throughout generations. History means a lot when it comes to watches.

In terms of style, going vintage has garnered some attention. Look out for the older styles that were inspired by Omega, Cartier or even Seiko. Older brands and models might be sold for surprisingly good prices across exhibitions or auctions. Auctions for luxury watches can be an investors playground, and a large focus at auctions has been on contemporary watches, but tastes have changed and there is a recognition that vintage watches have a larger collectible value.

Moreover, investors need to exercise prudence over the amount they spend on assets like luxury watches. It’s crucial that they reduce their exposure to risk since returns are not guaranteed and you would need an expert’s help with this investment. It’s suggested that you limit your exposure to just under 5 to 10 percent of your total investment portfolio value.

If you’re looking to sell, be willing to wait it out – more often than not, you may not have many investors in the market and might not be able to make the sale. If you do like investing in gold, the latest way to do this is buying digital gold, which can be done easily through Finserv MARKETS.

Conclusion

Investing in luxury watches is no child’s play. It takes time, effort, ample risk appetite and money. This calls for a disciplined approach in terms of research and portfolio allocation. It’s best advised that you seek the help of an expert before taking the plunge. You really have to be a watch aficionado to stay interested in the product.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!

Comments

Connect with Us
Connect with Us

Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522