Right now, it’s hard to talk about money and markets without referencing the current political landscape. Knowing where and when to invest is tougher than it has been for many years, with the markets fluctuating with every Downing Street announcement.
Stock and shares have proved volatile recently, with markets swinging on a daily basis. Even the usually-stable property market has caused concern for investors, with mortgage products being pulled and uncertainty around property values. With recent poor performances in crypto, too, one of the only meaningful alternatives to both traditional stocks and shares is to be found in the luxury asset investment market. Typically, high-end Swiss-made watches – Rolex and Patek Philippe – preserve their value at times of financial instability as they’re considered to offer both tangible benefits in terms of craftsmanship and an intangible, almost mystic, romanticism that’s connected with their provenance and brand name that translates into solid performances for pre-owned watches.
The Time Is Now?
While the pound may be performing poorly against the dollar, it throws open the door for savvy international investors and buyers – as well as UK residents who want to purchase in foreign currency – to pick up something very special indeed. With British luxury pre-owned resellers attracting global buyers attracted by favourable-to-them exchange rates on international currencies, this represents a rare opportunity for both overseas and UK buyers to make the most of any foreign currency that they hold. Not only should you get more bang for your buck (than your pound), but the markets will level out in the future, and the currency held in your watch can be released back to you in sterling if you opt to sell it.
Currently, there are hard-to-find models entering the market as owners want to release the value that’s held in their watch investment to ensure their financial liquidity. After all, it was an investment made for a moment such as this. However, luxury watches remain a safe asset in even the most uncertain of times. For owners who want to both keep their investment but are in need of a cash injection, luxury watches can be leveraged with a short-term pawnbroking loan that bridges a liquidity gap without selling the asset altogether.
Hold, Hold, Sell
When the UK exits this period of financial instability, your watch investment has become an asset with its value intact and not tied to either the currency that you bought the watch in or go on to sell your asset in.
Whether or not watches are the best thing to invest in feels like a moot point. The big Swiss brands relentlessly perform well at auction and in resell, with the appetite for many models seemingly unquenchable. Retailer waiting lists become ever longer and pre-owned buyers move from model to model, just to own a luxury watch rather than hang out for one in particular. While Rolex’s stainless-steel sports models are most in demand, if buyers can’t get their hands on a Submariner or a Daytona, they’ll be happy to pick up a Datejust, Milgauss or Yacht-Master.
What also makes luxury watches a sound investment is the ease with which they can be stored. One of the aspects that ensures luxury watches hold their value is that they can be worn and enjoyed, rather than kept in a safe – although, a luxury watch also has a small footprint in terms of storage space if not worn.