Now that you’re in a position to do so, the idea of investing in luxury watches holds a lot of appeal. The focus now is figuring out how to begin the process. What would it take for you to learn how to invest in watches? There’s more than one strategy, but these five recommendations will help you determine the approach that works best for you.
Learn All You Can About Luxury Brands
Before you make that first purchase, take the time to learn all that you can about the luxury brands currently available. You want to get an idea of what makes them so popular among collectors and possibly among those who are looking for timepieces of the highest quality.
What you will find is that those brands do have some characteristics in common. They also have some particulars in terms of design and style elements, the market sector that forms the foundation of their sales efforts, and even how often they release new designs.
You also want to learn about the history of current and previous releases. How did they fare in terms of being investments? When you see consistent track records of increasing value, that’s a sign you should consider those models as well as those brands.
That Includes How to Spot Fakes
The design and style elements will also help you in terms of learning more about how to spot counterfeit luxury watches. This is a huge market and some counterfeiters are adept at creating fakes. Typically, there is at least one flaw that will give the fake watch away. If you know what to look for, it’s all the easier to not spend money on something that’s ultimately worthless.
Do you know how to wind a Rolex? What about how to adjust the time or the date? Little things like that could help you spot a fake, since not every counterfeiter will take the time to replicate those functions. The more you know, the harder it will be for someone to take advantage of you.
Working With a Reputable Dealer is a Must
This is a smart move even for seasoned investors, but it’s all the more important when you’re looking for your first luxury watch. Reputable dealers use a number of means to confirm that everything they carry is authentic. That includes inspections of the containers that accompany each watch, the markings found on the casing, and a number of other key points.
You can expect dealers with impeccable reputations to provide plenty of background on each watch offered. That also helps you to understand the price and what you can expect in terms of appreciation in the future. As a bonus, dealers also have connections that make it possible to find brands and models that you might never find on your own.
Finding a Mentor is a Good Thing
Mentors are nothing new in the world of investments. It’s not unusual for someone who is just beginning to invest in stocks or bonds to find an investor who is willing to help them understand how to spot a good deal. You may be surprised to find that there are also mentors who help people like you find the best watches to purchase as investments.
This is not just a way to get advice. In fact, the mentor may not offer much in the way of specific recommendations. What you will likely get is the chance to see a negotiation as it takes place, learn some basics about how to evaluate watches for possible purchase, and maybe some reminders as you embark on that first buy.
Invest for More Than the Potential Future Return
The nature of investing does involve considering the future appreciation of any purchase. That applies to luxury watches as well. Even so, don’t base the purchase solely on what it might mean in terms of future returns. Also consider the intangible benefits of owning the watch.
For example, it could be a good way to protect yourself from future economic distress. Perhaps it will be something you choose to pass on to future generations. Maybe it will be something that you take great pleasure in wearing for certain occasions. These and other considerations also need to be part of the decision to buy any luxury watch.
As with any new venture, it takes time to become an expert. Proceed with your investment strategy slowly and be willing to adapt it as you learn something new. In the long run, those efforts will pay off in more than one way.