What Makes a Watch Increase in Value?

Anyone that owns and collects luxury watches like Rolex, Patek Philippe, and Audemars Piguet knows they increase in value over time due to certain factors. What makes luxury watches increase in value? Let’s find out!

Luxury watches come in all shapes and sizes and have different price tags. Luxury watches continue to rise in value because of growing demand, limited editions, discontinuation, exclusivity, special promotional events, social media, auctions, and famous celebrities that promote and wear them.

To understand what drives the value up for luxury watches, we researched to help you understand it better. This article explains some critical factors driving luxury watch prices and their value. Read on to find out what causes watches to increase in value.

What Cause Luxury Watches to Increase in Value?

There are several luxury watches that not only retain their value but can even increase over time. However, knowing if a watch will increase in value depends on certain factors.

While it does not guarantee that your watch will increase in value, some guidelines can help you make a sure investment.

All the factors we listed here are guaranteed to work great individually, but these factors work well when combined.

We discuss some general tips to keep in mind below to help you find out if your watch has increased in value after time.

Growing Demand Increases Value

One of the factors that influence a luxury watches value is supply and demand. Typically, luxury watches are not manufactured anywhere near the demand.

Typically, more people want to purchase a particular luxury watch model than there is that brand or model watch on sale.

This leads to high demand, which can increase the value. Luxury watch retailers keep their stock low to increase demand. You might see fewer luxury watches on sale, and it is typical to find you cannot buy that model or brand luxury you desire.

The price will sometimes stay constant when there is a high demand for the watch. In other cases, the value will increase over time if there is a high demand on the market. When it comes to supply over demand, even if there is a high demand for the watch, but it is not exclusive enough, the watch’s value might not increase due to oversupply on the market. Supply and demand are intertwined, and both are influencers when it comes to value.

Is it a Rare Watch?

The other part of supply and demand is how rare a watch is. Sometimes when a watch is extremely rare, it can also increase and influence its value.

A watch that is rare and in high demand will increase in value over time. When a watch is in high demand and extremely rare, it becomes more valuable.

Specific designs and styles can also contribute to a watch increasing in value. Some watch brands like Rolex and Patek Phillipe purposefully manufacture a limited supply of certain models to keep their watches rare.

Even though rare watches can increase in value, if a watch is not popular, its value might stay constant. Rarity certainly plays a massive role in the value of a luxury watch; however, if nobody wants it, it will probably not increase. The line between rarity and supply and demand is intertwined.

The watch that will probably increase in value would be an extremely rare watch that is in high demand. These two factors influence the value of a luxury watch greatly.

Watch manufacturers like Patek Phillipe, Rolex, and Audemars Piguet intentionally manufacture even less than public demand to increase their value.

By keeping the watches rare and exclusive, they cleverly increase the value of the watches by retaining a sense of exclusivity.

Patek Phillipe and other luxury watch brands often release new models in limited editions, and there might only be 300 watches of a particular model available. This strategy helps keep luxury watches exclusive and rare, maintaining their value high.

Price can also influence the exclusivity of a luxury watch. Patek Phillipe watches maintain their exclusivity by being extremely high priced. A Patek Phillipe luxury watch can cost $60,000 or more. The high cost of their watches prevents average persons from buying a Patek Phillipe watch. This typically establishes its value and allows it to increase significantly in value over time.

The appearance of being exclusive can cause a watch to increase in value considerably. People buy luxury watches mainly to be exclusive.

Limited Edition Watches

When a brand announces it is releasing a limited edition watch, it typically creates a sense of urgency and excitement. That model watch is limited, and only a certain number of watches are manufactured.

Limited edition watches can increase in value because only a few people can own them. If it is a famous brand launching a limited-edition model, collectors will scramble to get their hands on that specific model.

Owning a limited-edition luxury watch is proven to be a valuable investment. Two reasons why watches can increase their value over time are exclusivity and limited production.

Luxury watches that are more likely to increase in value are watches that are made in celebration of an anniversary or limited-edition watches. Special edition, rare and exclusive luxury watches typically gain value over time.

Omega is famous for releasing many limited-edition watches and, in doing so, has diluted their exclusivity because so many watches are readily available on the market. Producing large numbers of limited-edition watches reduces the chances of the watches gaining value.

Patek Philippe very rarely launches limited edition watches. When they decide to release a limited edition watch, it is generally a minimal number of watches that make them collectible instantly. Patek Phillipe’s limited editions are so rare and exclusive that they are impossible to purchase at a regular price. Some of Patek Phillipe’s limited-edition watches are worth far more than their retail price.

Discontinued Luxury Watches

Discontinued luxury watches are among some of the most highly sought-after watches today. Because of their exclusivity and rarity, they can often be more expensive than they were previously.

Discontinued luxury watches represent pieces of horological history, whether they were limited-edition watches or commemorating a milestone. For example, when Patek Philippe announced their popular 5711 watches would no longer be made, their price rose from $60 000 to $90 000 in a matter of a day, a 50% increase in value. Discontinued watches hold a special place in our hearts and increase in value as they become rare.

When a major watch manufacturer announces that a famous model is unexpectedly being discontinued, there is usually a sudden rush to get that watch from retailers worldwide. When the demand soon outruns the supply, it drives up its value considerably.

Luxury Watches Brands That Best Hold Their Value

Some luxury watch brands hold their value, and some watches even increase in value, making them more valuable than their original price. For example, purchasing a Rolex or any of the luxury brands watches we listed in this article is an excellent investment and will definitely give you a high return when you decide to sell it.

Patek Philippe is associated with exclusivity, sophistication, and class. These attributes make Phillipe Patek’s watches extremely valuable in the market, and their best sellers are the Aquanaut, Philippe Nautilus, and Chronograph.

Cartier Paris is famous for its exceptionally sophisticated designs, and its watches definitely stand firm against time. A Cartier watch can cost anywhere from $5000 to $ 370.000. When you purchase a Cartier, expect its value to increase over time.

Jaeger-Le Coultre is another famous luxury watch brand that offers exceptional designs. Most watch collectors consider Jaeger-Le Coultre watches a significant investment because they always increase in value.

Recommended Omega watches that are excellent investments include the Omega Seamaster, Constellation, or Speedmaster.

Certain watch brands and some specific watch models are highly collectible and continue to increase in value; examples of these are Rolex, Patek Phillipe, Audemars Piguet, Richard Mille, Lange & Sohne Cartier, IWC, Tudor, TAG Heuer, Jaeger-Le Coultre, and Panerai Luminor Marina are all watches that retain their value and increase over time.

Celebrities Wearing Luxury Watches

Celebrities are great influencers when it comes to watches gaining value. The type of luxury watch celebrities wear is photographed and published in magazines and news outlets, which drives the value up for those watch brands and models. When famous celebrities wear certain luxury watches, it increases awareness and demand and therefore increases the watch’s value.

Actors, fashion designers, musicians, and sports stars all wear luxury watches, and showing them off on tv or in the movies drives up demand for those models.

Jay Z has been photographed wearing a Richard Mille Blue Sapphire Watch worth a whopping $2.5 million, a Cartier Crash, and Rolex Daytona. Actor George Clooney is a loyal Omega Speedmaster wearer, while Bradley Cooper likes wearing his IWC Aviator watch when he is in public or on a movie set.

Tag Heuer is a favorite watch many male celebrities love to wear. As Tag Heuer’s original brand ambassador, Brad Pitt chose the Tag Heuer Carrera Heuer-01 as his trusted companion.

The Cartier Crash saw a considerable increase in value from $34,000 to $100,000 in a short while because it was regularly seen on Kanye West’s wrist.

Tom Hanks has been seen wearing the Omega Speedmaster Moonwatch. The Omega Speedmaster is most popular for being the first watch worn by Neil Armstrong to make it to the moon, while Buzz Aldrin wore an Omega watch.

Richard Mille is an exclusive luxury watch brand celebrities love. Richard Mille watches often exceed $1 million and is the ultimate status symbol to show off your wealth.

Omega is the official James Bond brand, and ever since the Seamaster became the official James Bond watch in the 1990s, several 007-inspired limited editions have been launched. Luxury watch manufacturer, Omega excels in producing themed watches. Daniel Craig wears the Seamaster Planet Ocean as James Bond 007.

Celebrity actor Tom Cruise has been seen wearing several luxury watches in all his movies and personal life. His favorites are the Rolex Datejust, Panerai Luminor Marina, Cartier Calibre Chronograph, and Day-Date Yellow Gold Rolex President.

He wore a Vintage Omega Caliber 321 in War of the Worlds, and in Vanilla Sky, he was seen wearing an IWC Mark XV. As agent Ethan Hunt in the Mission Impossible franchise, he is often seen wearing a Tudor Heritage Chrono, and in Top Gun, he is seen wearing a Porsche Design Orfina.

Celebrities seen and photographed wearing different luxury watches while in character greatly influence their value. People watching their every move often like to imitate their style, pushing the demand for those watch models, increasing their value.

Several male celebrities appreciate the classic design of the Cartier Tank watch. Tom Hanks and Leonardo DiCaprio have both been seen wearing the Cartier Tank. While David Beckham always looks sophisticated wearing a Tudor Black Bay watch.

The Panera Luminor Marina watch became a highly popular watch when Sylvester Stallone wore it in his 1995 film Daylight. As Sylvester Stallone was why Panerai Luminor Marina watches became so famous, the Panerai brand launched a limited-edition watch dedicated to Sylvester Stallone.

Conclusion

The primary factors that cause watches to increase in value are supply and demand, exclusivity, rarity, and their unique identity.

Investing in a luxury watch is an excellent idea because, historically, watches have increased in value over time. Several factors influence a watch’s value. A watch’s value can increase due to growing demand, limited editions, and discontinued celebrities and models wearing and promoting specific brands.

The collectability of particular brands and models also plays a massive role in the value of luxury watches. When choosing a luxury watch, keep the model and brand in mind, the popularity of the model, and how often limited editions are launched. These factors will ensure an increase in value.

We hope you found this article informative and understand what makes a watch increase in value.