Watch Collecting Guide: Prioritize Passion Over Profit in a Volatile Market

Key points

• The global watch market exceeds $135 billion with 5.6% annual growth, but most watches lose value over time.
• Experts like Charles Tian and Mike Johnson warn that watches rarely outperform traditional investments like the S&P 500.
• Rolex, Audemars Piguet, and Patek Philippe are the most reliable brands for value retention, with new prices starting at $6,200, $11,300, and $18,000 respectively.
• Buying used can save 40-50% but requires diligence regarding condition, service history, and seller reputation to avoid 'franken-watches' and fakes.
• Mechanical watches require servicing every 7-10 years, with costs ranging from $200 to thousands depending on complexity and brand.

Background

Recent trends show a shift toward vintage-inspired 'grandma' watches among Gen Z and a rise in microbrand launches, such as Formex's AirField, indicating a broader interest in horology beyond smartwatches. However, the luxury market has faced a recent slump, making value retention a critical concern for new collectors.

Why it matters

Understanding the distinction between collecting and investing helps beginners avoid financial pitfalls. The high cost of entry and potential for depreciation mean that emotional satisfaction and aesthetic appreciation are more reliable drivers for new collectors than financial returns.

What to watch

Collectors should focus on acquiring watches from reputable dealers or verified secondary market sources, ensuring original packaging and documentation are preserved. Regular servicing and proper storage in dry, secure environments will be essential to maintaining long-term value and functionality.