Why it’s the perfect time to invest in rare watches

An instant investment profit of close to 250pc sounds fantastical — impossible, even. But in the sleek world of luxury watches, those who manage to get their hands on brand new rare timepieces can sell them on for a fortune.

A high-end Swiss watch is the symbol of wealth, and while many view them as unaffordable and frivolous items, a subset of collectors have approached them purely as a sound investment.

Michael Ayres, of pawnbrokers Suttons & Robertsons, said: “I know plenty of people who have used their savings on a watch as a store of wealth, so it can be a family heirloom for the next generation. Others don’t save towards a pension at all and claim their collection will be their retirement fund. Watches are like liquid cash.”

The global stock market has gained 63.1pc over the past five years, according to FE Fundinfo, a data company, while house prices have increased 28.9pc, the Office for National Statistics found. But many high-end watches have far outstripped this: some Rolex models have gained 250pc in value over the same period.

Part of the appeal – and the rise in value – is due to the rarity factor. Mike Manjos, of WatchBox, a secondhand luxury watch seller, compared owning a luxury watch to having a vintage Ferrari. One of the most exclusive brands in the world is Swiss watchmaker F.P. Journe. The company trades on its rarity and makes just 800 watches a year. Only 20 exist worldwide of its initial Tourbillon range. 

Mr Manjos said: “All over the world people are chasing this very small pool of watches, which can be as expensive as £2.9m each. It seems crazy until you realise the rarity and artistry.”