Times are hard and money is tight. With banks spiralling out of control and the cost of watches going up, is it better to shore up the money in the banks or buy a good watch, invest it, and put it away? Let us explore the truth of the matter.
Compare the Percentage Rate Increase
When you place money in a bank or in a savings account you often get given a percentage rate at which that will increase if left alone over the course of the year.
The average percentage rate of a bank’s savers account across the UK is 0.05%.
Let us say you had £5200 in 2014.
If you placed that in the bank savers account until now (2022) you would have a grand total of £5220.83.
Now let’s take a look at how much you would make if you took the route of investing that £5200 in a watch. In 2015 you could have bought a Rolex submariner for £5200. Today in 2022 that same watch is selling for £12,950. Your investment will have increased by £7750! A huge difference over placing your money in a bank.
Is that Just a One Off?
Thanks to the history, the craftsmanship and the following that has surrounded luxury watches for years they have been selling well for years and are likely to sell well for many years to come.
If you take good care of your investment there is a good chance it will increase in value over time in your care. Ultimately, it will give you a return on your investment when it heads into the hands of another watch collector.
Is Investing Right for You?
Investing in a watch definitely works, but is it right for you?
Speak to other investors about their experiences and gather some knowledge first. The chances of buying a fake are high when you first start out, it is important to do your research.
Do not get so excited by the figures above that you buy the first luxury watch you see. Take your time and look to understand what type of watch you would like to save for. Take the time to understand which watches hold value. (Pro tip: Rolex has been a leading seller in the UK since 1905 and classic watches from Hit Bond movies are considered collectables by many).
Another point to keep in mind is that it can be expensive to get started. Do not think you have to start by buying new. Second-hand shopping can be just as lucrative as buying new, it is also kinder on the wallet and a good way to start if you’ve never flipped a watch before.
Get Your Watch Maintained or Repaired in Glasgow
If you have recently started a watch collection or need to service, repair, or restore a luxury watch, please contact Martins of Glasgow at martin@martinsjewellers.co.uk or Gail, at gail@martinsjewellers.co.uk. Alternatively, pay us a visit at 1158 Maryhill Road, Glasgow. Our team is always ready to provide your watches with the best service possible.