From the pre-owned to the brand spanking new, what determines a watch’s value?
At the beginning of 2022, a Patek Philippe Nautilus 5711A, which sells for US$35,000 retail, could be snapped up for a bank-busting US$240,000. By August, that figure nosedived to about US$190,000; slack-jawed collectors had a cryptocurrency collapse to thank—or blame, depending on whether they were buying or selling. High-end timepieces have long been favoured by high-rolling traders, so when the crypto market’s total value shrank from US$3 trillion (yes, that’s trillion) by two thirds, watch valuation experts wondered whether the Nautilus 5711A’s tailspin was an indication that the soaring second-hand industry was losing pace.
Head of region and client development for online retailer Watchfinder & Co Vivian Hau is confident that the market will hold steady. “We’re seeing an increase in the number of watch lovers bringing their luxury pieces to us for appraisal,” she says about the company’s Hong Kong space, which offers a curated selection of bestselling, vintage and limited- edition models from the likes of Cartier, Breitling, Rolex and Jaeger- LeCoultre. “When they [customers] do this, they are looking to refresh their collection and are thinking of selling or part-exchanging an existing watch or watches to make way for a new one.”
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So, why is it that some watches hold and even increase in value, while others don’t? In collector communities, talking about timepieces as an investment is controversial—even frowned upon. When Tatler asks Bertrand Meylan, CEO of Melb Asia, which owns H Moser & Cie, Hautlence and Precision Engineering, how his company ensures the long-term value of products, he simply answers: “We don’t work that way.” Instead, Meylan and his team focus on building brands’ reputations through boundary-breaking collections. H Moser & Cie has been especially successful at attracting attention this way, having launched a parody of the Apple watch, a grass-covered pièce unique, and the Swiss Mad, which was made entirely out of cheese.
Meylan’s message to watch wearers worried about value retention: “You’re not a collector”. While watch enthusiasts have different motivations when it comes to acquiring a timepiece, the businessman strongly believes passion should always be factored into the equation. “When you get married, you don’t think about divorce. I think the majority of collectors buy watches because of the emotion they get from them. They are attracted to the movement and the design. The watch speaks to them, and if the watch happens to retain or increase its value in the long term: good for them.”