[Supervised by an appraiser] Is buying a watch an investment? How to invest in a watch without losing money

Normally, when you buy something, its value starts to decrease from the moment you buy it.
Not to mention consumables, there are very few cars worth investing in, even those costing over 1 million yen .

However, it is not uncommon for luxury watches to be counted as investment assets.

This time, we will introduce you to the relationship between watches and investment in more detail.

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Why are watches an investment?

The reason why watches are good investments is simply because certain watches are desired by many people around the world .

Gold is famous as the world's number one physical asset. The reason gold is so valuable is because people want it. In ancient times, it was used as an ornament, and now it is in high demand for industrial purposes as well.

Asset value is based on people's demand .

In the case of watches, too, brand models backed by overwhelming demand will retain high asset value for many years to come, and in some cases will be traded at prices far higher than their original price (premium prices) .

Why watches are a good investment

Reasons why watches are a good investment: 1. They can be used for decades

In addition to gold, silver, copper, etc. are also recognized as physical assets. In addition to demand, assets are required to be "hard to break" as a property.

Due to these characteristics, the type of watch that is able to maintain its value for a long time is the "mechanical watch," which is not battery-powered but is powered only by the power of a complex mechanism .

So, why are luxury watches a good investment? The fundamental reason is that if they are properly maintained, they will almost never stop working .

No matter how well a car is maintained, which is counted as an asset, it is not uncommon for it to stop working after 10 to 20 years or to require maintenance costs that exceed the original price.
However, luxury watches can operate indefinitely with much lower maintenance costs .

For these reasons, although watches are consumable items, they can also be counted as assets .
Because it is an asset that does not lose its value over time, it meets the minimum requirements for investment.

Reason why watches are good investments: 2. The absolute number of watches does not increase, so their value does not decrease

The term "limited edition" may sound like there is a set number to be produced, but in fact , each luxury watch model has a set production period, and the same model will never be released again except as a reissue.

So the numbers are relatively small.

Value is driven by the balance of supply and demand.

If there are 10 people who really want a particular watch, and there are only 5 in circulation on the market, the price will naturally rise. Conversely, if there are 100 in circulation, the price will fall.

Since the supply of popular luxury watches rarely exceeds demand, they do not lose value easily and in some cases are traded at prices higher than the list price (premium prices) .

Reason 3 why watches are good investments: They can be converted into the monetary value of the time.

Do you know what the price of Rolex, the world's most famous luxury watch brand, was 10 years ago?
The Submariner Date, which is still a popular model, was traded for around 400,000 yen around 1995 , but now has a list price of 874,800 yen.

After some research, we found that used versions of the previous model Submariner Date (Ref. 16610) are currently trading for around 650,000 to 1,000,000 yen, depending on the condition . The popular green bezel model is around 1.5 million yen.

Of course, technological advances are one factor, but a bigger factor is the decline in the value of 1 yen.

If you put 400,000 yen into your bankbook in 1995, even if you withdraw it now, it will still be 400,000 yen. So, if you had bought a Submariner Date in 1995, you would have made a considerable profit.

This price is also related to the fact that the value of money back then is not commensurate with the value of money today.

Although they do not necessarily sell for a high price, watches are less affected by long-term inflation and can be traded at the prices of the time, which is why they make good investments .

What are the patterns of watch investment failure?

As I explained at the beginning, what supports the value of a wristwatch is "demand."
So if you choose an unpopular brand or model, and therefore a watch that is not in demand, the price will drop and your investment will be a failure .

In addition, maintenance is very important for mechanical watches, so if they are not looked after regularly, their value will decrease.

And even if you buy a popular model, if you sell it immediately after buying it, it may not fetch a premium price and you may end up having to sell it for a little less than the list price.

This kind of know-how in investing in watches is difficult to acquire overnight, so we recommend consulting an appraiser who is familiar with the second-hand market before purchasing .

You can add value to your watch while enjoying it

If the only consideration is that value does not change, many people would think that physical assets such as gold and silver would be a better option.

So why invest in watches? It's simply because it's fun to wear a nice watch .

Wearing a watch, which can be considered a work of art, not only shows your status and attracts the attention of others, but you can also enjoy wearing the watch yourself.

This is something that physical assets like gold and silver cannot do.

In addition, watches that have been properly maintained and cared for can also be valuable as vintage watches. Vintage watches are watches that are 20 to 30 years old or more, and there are many cases where the value of a watch that originally had a list price of several hundred thousand yen exceeds 10 million yen.

Another advantage of investing in watches is that it allows you to combine hobby with practical benefits.

If it is purely for investment purposes, it is better to keep it unused.

However, there is a risk that the watch will break if you wear it regularly. Even if you manage to get your hands on a popular Rolex model that is sure to increase in price, it would be a waste if you break it.

If you are buying it purely for investment purposes, we recommend that you store it in an unused condition without opening it at all . Store it in a special case in a dark place that is not hot or humid.

As years go by, the number of unused items becomes increasingly rare , so by aging it in the same way as wine, its market value will increase.

It is possible to make a profit while using it, but if you are purely for investment purposes, this is recommended .

summary

In this article, we have explained why watches are an investment and what you can do to avoid losing out.

First, we have explained the following reasons why watches are suitable as an investment:

• Since it is mechanical and operates without fuel, it can be used for decades with proper maintenance.
• The production period is fixed and the supply is limited, so the value does not decrease easily.
• Not only can it be stored as valuable in today's world, but it is also likely to fetch a premium price.

Here are some reasons why investments fail:

• I bought an unpopular brand or model
• Neglecting regular maintenance
• The time between purchase and sale is short, so the value does not increase sufficiently.

We also mentioned that since it can be difficult to find models that are likely to become more valuable in the future on your own, we recommend consulting a store like Commit Ginza that has appraisers who are familiar with the second-hand market.

Finally, I told you that there are two ways to invest in watches.

1. Enjoy your watch, take good care of it, and bring out its vintage value
2. If you keep it completely unused and then sell it once its value has increased, you will have a higher profit margin.

Investing in watches is considered to be a unique investment method that is different from investing in physical assets such as gold and silver.

My advice is to find a watch that you like and that is also a good investment.

We hope you will visit Commit Ginza to help you achieve this.

In addition, among the specific watch models worth investing in, we will introduce Rolex, which is particularly likely to gain value, so if you are considering investing in a watch, be sure to take a look.

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Thank you for reading.
If you are interested in investing in watches, be sure to check out Rolex, the most famous watch brand in the world!
Also, if you have any luxury watches you would like to sell, please feel free to contact Commit Ginza!

If you want to buy luxury watches at a low price, be sure to come to Commit Ginza!

• "I want to sell my unused Rolex for as much as possible."
• "I want a thorough assessment."
• "I want to buy from a store with a good track record."
• "I want to buy luxury watches at low prices."

If you have these requirements, Commit Ginza is perfect for you !

Commit Ginza is a watch store that operates on the concept of " buy high, sell low " in the used watch market, where prices are said to be difficult to understand.

Our experienced watch appraisers assess the watches to determine the market value and set the appropriate price. We also strive to maximize the profit margins of our stores and improve customer satisfaction.

As a result, the commission rate for deposit sales is only 3% (industry average is 10%).

Please feel free to consult with Commit Ginza whether you are purchasing a watch for investment or selling.