Features
Mechanics Do Matter
The Art of the Timepiece
Craftsmen in the 16th century figured out how to turn a clock into something small enough to wear on one's person. Pocketwatches became all the rage by the 17th century as a symbol of efficiency, fashion and status. Wristwatches at that time were almost exclusively worn by women and marketed as bracelets. The pocketwatch held favor until the early 20th century, when military men started to wear wristwatches as well — a simpler solution for men at war. The British dominated watch manufacturing for much of the 17th and 18th centuries and geared most of what was produced towards the wealthy. A few centuries later, technology reimagined the functionality of the humble wristwatch by making it smart. Our watches talk to our phones, track our fitness, receive and send messages, play music, and do so much more than simply tell time.
The Investment
You might think that the humble wristwatch, regardless of how expensive or high-end it might be, would be completely out of fashion in this current technology-based climate. However, you would be mistaken. The well-made watch is an investment that has stood the test of time. And yes, the mechanics really do matter. Truly timeless timepieces are still being hand-made. The ones that hold and increase their value are those that are entirely mechanical, meaning spring-driven without batteries. Added complications — the ability to include the date, day of the week, alarms, chronographs and automatic winding mechanisms — definitely add to the value and desirability of the watch. Additionally, the type of metal used and whether it includes any gemstones in the design increases its worth. All original parts are necessary to maintain the value of a watch. Even something as simple as the crystal needs to be repaired or replaced by the manufacturer in order to keep your investment intact.
The Market
We sat down with our resident jewelry expert, Peter Sedghi from Luxury Jewels of Beverly Hills, and talked watches. The watch market right now is so hot that Sedghi can't manage to keep inventory in the store for more than a few days. His top three favorite brands right now are Rolex, Audemars Piguet, and Patek Philippe — all high-end luxury brands that can retail anywhere from $10,000 USD to $100,000 plus.
"Due to COVID and the world-wide quarantine, all of the major watch manufacturer factories had to completely shut down. This caused a shortage of inventory. With a lot of people getting PPP money and the help of the government stimulus, believe it or not, people are looking to invest in watches."
With the increased desire to buy and the shortage of supply, watches have increased in value by double — and sometimes triple in some cases. Take for instance a basic, stainless steel Rolex Daytona. Only six months ago, you could have picked a second-hand one up for maybe $4,500 if you were lucky enough to find one. Now that exact same watch would cost you $8,000–$11,000.
Youth & the Watch
Sedghi tells us that we'd be surprised at how popular watches have become with young people right now. After school, most days, Luxury Jewels will get kids as young as 12 or 13 coming in just to look at the watches. "They have done their research as well, knowing which brands are hot and exactly what details to ask about." Aspirational future customers to be certain, these teens might just surprise you with their knowledge of what's important and what features are desirable.
Why Buy a Watch?
So why buy a watch? You have the time at your fingertips with your cell phone. There was a historic dip in the watch market from about 1973 until around 2007 when people got very used to carrying their time-telling devices in their pocket in the shape of a phone. However, the status and the style of the humble wristwatch never really went out of fashion. Men, in general, have far fewer jewelry options than women. The purchase of a fine watch is always a winner. But also, if you are going to wear one, why not make it something that increases in value year after year with a little care?
Where to Start
Like all expensive purchases, consider your budget. You can spend thousands of dollars on a quality timepiece and you should be sure that you can afford making that leap. Come up with an amount that you can afford to part with and then start doing a bit of research to see what your options in that price range would be. It is not only wise but prudent to consult with a respected jeweler before purchasing something that might not be all that was promised. Obviously, shopping directly from Rolex or Cartier themselves would be one way to secure your investment. But you can find some amazing deals second-hand if you know what to look for and who to consult.
What to Watch Out For
When shopping for a second-hand luxury watch, make sure the seller is reputable — do your research, ask around, and get friendly with some jewelers who can help guide your decisions. Make sure you see if the movement (the mechanics of the watch) have been changed. It's one thing to have a watch cleaned, but entirely another to pop out the old movements and replace them for something less desirable. Make certain the parts are original. If the crystal or the band has been replaced, but not officially by the watchmaker, this impacts the value.
Most luxury watchmakers won't sell replacement parts to wholesalers anymore, so if someone assures you that they can get an actual replacement Rolex crystal and do the work, they are most likely telling tales. It is also extremely important to have the original diamonds or gems in the watch. Some jewelers will drill into a plain watch to add such embellishments, and this seriously hurts the overall value — even if they are seemingly adding a precious stone into the mix.
""Due to COVID and the world-wide quarantine, all of the major watch manufacturer factories had to completely shut down. This caused a shortage of inventory — and people are looking to invest in watches."
— Peter Sedghi
In Summary
Now is a great time to buy or sell a luxury watch. Be smart about your sources and know as much as you can about the origins and originality of the watch you are considering. If you are selling, be sure that your watch is entirely original. If there is anything on your watch that needs replacing, it will be worth it to take it to the retail location of the original manufacturer. For example, a crystal on a Rolex might cost you anywhere from $1,600–$2,400 USD to replace. However, an unofficial crystal replacement can decrease the value of your investment by tens of thousands of dollars — and to make matters worse, it can also invalidate the manufacturer's warranty.
While technology marches ever forward, a good, quality wristwatch will never go out of style. Even if that means wearing your status on one hand, and your smart watch on the other.
