A Beginner Guide to Investing in Luxury Timepieces for a Lifetime Wardrobe

Most people treat watches as accessories, something to match an outfit and replace when trends shift. That’s an expensive habit. A better approach is thinking of a well-chosen timepiece the way you’d think of a well-made coat: buy it once, buy it right, and it pays for itself over decades.

Now the secondary market for luxury watches accounts for some $24 billion of sales and is forecast to reach $35 billion by 2026, propelled by younger buyers seeking both style and value retention (Boston Consulting Group, 2023). That number tells you something important: these are not just accessories. They are wearable assets, and novices who realize this early have a real edge.

Start With Versatility, Not Flash

The first watch has to walk before it can run. Forgo the tourbillon, power reserve, and day indicator. Steer clear of the racing stripes, carbon fiber, and the neon dial. Look straight past the ‘homages’ to the watches that inspired them, partly because it’s often a euphemism for a rip-off, but more because you don’t want to play endless explanation defense every time your new purchase is spotted.

Instead, look for a face that says in one glance what you want it to say every time you put it on your wrist. That might be the major horological manufacturer’s commitment to finishing and detail that’s visible only under a loupe. Or the history of a house that turns every purchase into a plus-one for a boardroom debate on milestones in post-war design. Or it might just be that you simply like the way it looks. Don’t overthink it. The comparison of one watch’s movement or heritage with another’s is cheating. The only watch you get to compare this to is what your smartphone tells you is the time. And if you need more than one sentence, it’s probably not simple enough.

Why the Secondary Market Makes Sense For Beginners

Opting for a pre-owned timepiece isn’t cheating. It’s often the savvier choice. New luxury watches bought through authorized dealers often have long waiting lists or are allocated based on a buyer’s history of purchasing other watches from that dealer. The secondary market is far less complex and in many ways far more rewarding. Not only is the price often more agreeable, the selection is vast and the ability to source watches that aren’t available new makes buying pre-owned an easy decision.

Take second hand Rolex watches, for example; it is better in the pre-owned market than nearly any other brand. As the world’s largest and most valuable watch brand, the demand for rare and iconic references is always high, as is the resale value. What this means for buyers is that by the time the watch has been out of production for a year or two and you’re looking for a modern classic, the biggest hit of depreciation has already passed. Of course, buying through a grey market dealer is riskier, but buying through a reputable specialist rather than a bloke with a bulky overcoat makes those fears largely unfounded.

Then there is the question of provenance. Box and papers, a recorded ownership history and a few other factors aside from just the watch itself only serve to confirm its authenticity. For a modern watch, it’s largely floss, but if you own a vintage Rolex and want to make a few more bob when the time comes to sell it, it will all count for a lot more than a fancy box.

The Real Cost of Ownership

When you’re spending cash on a premium product, it’s important to know that this is as functional as it is beautiful. A mechanical movement needs servicing roughly every five to ten years. Skip that, and you’re not just risking accuracy, you’re risking a repair bill that dwarfs what the service would have cost, and you’re likely shaving money off the resale value at the same time.

Passion First, Investment Second

This conversation can go a different way and become an exercise in spreadsheets. Certainly, some watches appreciate. A handful of references from Patek Philippe, Audemars Piguet, and Rolex have made for phenomenal investments over the years. But speculation is a different game than collecting or curating a long-term wardrobe, and it’s not the one most novices should be playing.

The test is simple: Buy what you like. Buy what you’d wear even if that watch never went up in value. If it continues to hold value or even appreciates, great. If you bought it thinking of it purely as an investment, and it doesn’t appreciate, you’ve got a watch on your hands that you never wanted to wear.

The math on a cost-per-wear basis here is simple. A reasonably well-selected watch worn almost daily for twenty years and then sold for roughly what you paid for it costs you next to nothing. A fashion watch or a frivolous purchase replaced at a two-year interval costs you a lot, even if each individual watch only costs you a little.

Authentication Isn’t Optional

Make sure you know what you’re getting before you get it. Counterfeits are good enough now that touch and feel isn’t enough. Find an expert, compare serial numbers to brand databases where possible, look at service records if it’s been represented as being recently serviced.

One real, well-serviced piece beats a drawer of unknowns. Start small, buy right, and the collection will come.