Which Luxury Watch Brands Grow In Value?
When purchasing an expensive luxury item of any kind it’s always wise to choose brands that have a solid history of holding their value under any market conditions. Of course, if you ever decide to sell or trade your watch in for another, you don’t want to be stuck accepting a fraction of what you paid for it in value.
Likewise, if you’re investing in stocks or are considering selling watches, you’ll want to deal with watchmakers that have a consistent track record of growth. Unfortunately, the vast majority of watch brands do not hold their value and instead will become increasingly less valuable with each year that passes.
In fact, only about 15 brands in existence are known to consistently grow in value. With that said, here are some of the factors that allow certain brands to become more valuable while the rest are on a steady decline:
Exceptional Brand History and Resilience
Most of the luxury watch brands that hold their value are at least 100 years old and have thrived through multiple eras of economic uncertainty, wars, and other major social disruptions.
Thus, one of the best ways to find out which watch brands hold their value, is to simply determine which ones were already doing well 50-100 years ago. A longstanding history not only proves the brand’s competency and experience in watch design, it also attracts investors who are looking to partner with the most successful watchmakers.
Although a lucrative past doesn’t always guarantee the same for the future, it’s hard to imagine the downfall of certain powerhouse watch brands. So long as luxury fashion remains a massive global market, certain brands should continue to perform as expected.
Country of Origin and Manufacturing Locations
Switzerland is a haven for failproof watchmaking companies, with almost all of the best luxury watch brands being based in the Geneva area. Of course, watches made here are more likely to grow in value than cheap alternatives made in Asia, especially over the long-term.
While smaller brands may experience exponential growth during trending seasons, eventually their value always declines when the next big thing comes along. On the other hand, leading brands out of Switzerland have an impressive track record of increasing company value on an ongoing basis.
Steel Watches Hold Value Best
Surprisingly, it isn’t the fancy watches comprised of precious metals and jewels that hold value the longest. Instead, the steel versions of flagship models tend to hold value better because there’s a larger market for them due to the fact that they’re more popular and affordable.
This is a commonly overlooked factor — how easy it will be to liquidate or trade. With online luxury watch marketplaces like Chronoexpert making it easier for people to shop around, it helps to invest in watch brands that are top sellers in a variety of categories and material types.
Certification and Movement Type
Finally, one thing that the most valuable luxury watch brands tend to have in common is Contrôle Officiel Suisse des Chronomètres (COSC) Certification. The best luxury watches are typically given quartz movement certification versus the less reliable automatic or mechanical movements.
These certifications primarily serve to verify the quality, durability, and accuracy of the finished products, thereby instilling confidence in both consumers and investors.
Still, it’s worth noting that there are many COSC-certified watch brands that aren’t known to increase in value, so this attribute should be considered in conjunction with the aforementioned points rather than as a standalone indicator of a watchmaker’s future growth potential.