Quote:
Originally Posted by Onitsuka
I know its been said here that watches are not an investment but would I be crazy in looking at a watch outside my price range on the basis it will hold its value and can be sold on in the future?
At the moment alot of people are struggling financially and the market for high end watches must be lower than it has been. This also leads to alot of motivated sellers who will be willing to accept a lower amount for their watches.
If I shopped around all the forums and ebay looking for a good condition used watch would it realistically hold its value for a few years? (minus the cost of service etc)
Just trying to jusify spending more than I should
there is money to be made doing this in a shorter time frame if you know the market and are connected enough to move your inventory.. finding motivated sellers of desirable (read: liquid) second hand pieces and giving them aggressive prices is critical.. you are basically only looking at rolex (vintage preferred). you have to be savvy enough to know how to authenticate and verify provenance then have the network and reputation to move your inventory quickly..
finding a "cheap" watch to buy in this market is easy, brokering an exit from that acquistion is the very hard part.
if you're looking at employing a buy and hold (and pray) strategy, i suggest you look at other vehicles.
IMO the only real pieces which have any long term shot of appreciation are ones with a truly limited supply (not one of the 500 LEs that come out every year).. you're basically looking at vintage pieces from major houses in good condition with impeccable provenance. of course you have to overcome the transaction costs (buyers premium, insurance) and be in good enough standing when you finally decide to move the piece to attract qualified buyers.