With house prices expected to rise over time and mortgages already integrated into the fabric of our society, how do high-end watches compare to property as far as investments are concerned? The fake watch market is currently booming with some watches showing triple-digit appreciation in the last 12 months, but is it safer, in the long run, to invest in a house? Arfan Mohammed, founder of the London Watch Exchange and a watch enthusiast, gives his opinion.
While real estate usually appreciates steadily, with an average of 5% per year, the watch market is not so stable. In some years, the lowest risk watches will see a 2-4% increase, but in other years, there will be a 20% to 100% gain.
Housing is a solid investment vehicle considering other benefits such as extensive leverage, tax efficiency, or the fact that it can generate income through rent.
However, if you choose wisely, it can sometimes fall short of the returns you can reasonably expect from an “investment grade” watch when you consider the amount of money you might put down on the property.
While this certainly does not represent the typical investment experience in the watch market, it does emphasize the importance of having industry knowledge and insight.
While Richard Mille replica watches may not have been a great investment five years ago, the vast majority of RM models are now experiencing a similar appreciation in value.
Brands including Tudor, Vacheron Constantin, Bulgari, and Cartier are now making extraordinary strides as investment vehicles, but while they pose a greater risk than safe brands such as Rolex, they offer greater potential returns.
Avan Mohammed has worked with the world’s leading department stores and has over a decade of experience in replica Rolex timepieces alone. He is a renowned watch historian and has traded hundreds of millions of pounds worth of luxury timepieces over the years. Avan is adept at predicting investment trends due to his sophisticated knowledge of the watch market. Fellow jewelers and retailers often ask for his expert advice as his judgment is highly regarded in the industry.
However, as the continued strength of the blue dial suggests, some trends persist, making watches with such characteristics a good investment choice.
