Investment Watch

Quartz movements started the Swiss watch crisis of the 1960s, and thanks to Mr. Nicolas Hayek, sole saviour of the swiss watch industry, we can be here to talk about these phenomenal watch investments. In part, the premiums that mechanical watches carry now are also due to the 60s quartz crisis.

With fewer manufacturers of haute horology, these watch investments can pay great returns IF you know how to pick iconic movements, iconoclast looks or have an eye for heritage timepieces. Here are some watch investment factors and timepieces worthy of investment.

What to consider

1. A history of watchmaking If the brand has a long history of watchmaking (at least 100 years), chances are, it'll be a good watch investment. Read watch forums or better yet, have a look on ebay, what are the prices of a 5 or 10 year model? Has it appreciated? Look into rarity, limited editions are great but with marketing hype, it's hard to separate the wheat from chaff, look at the production run.

Patek Philippe Grand Complications Minute Repeater

For timepiece aficionados, the Patek Philippe Grand Complications Minute Repeater Ref. 3939 was considered the pinnacle of the horological arts. Launched in 2000, this fine platinum wristwatch is a blend of elegance and simplicity, and much lauded for its minute repeater, tourbillon and subsidiary seconds dial. It has even been auctioned for up to half a million US dollars. Patek Philippe has a watchmaking tradition of over 170 years- their latest Grand Complications Minute Repeater 5339 is a direct improvement of the 3939 model.

2. It has to be unique From a watchmaking standpoint, the design, manufacture of both parts and case finish are important aspects. Buying source components like ETA or Valjoux don't add value though these movements are considered good quality and reliable workhorse staples of the industry.

Montblanc Metamorphosis

The Montblanc Metamorphosis is patented and equipped with a world’s first horological concoction of wheels and pinions with built-in metamorphic functions controlling 10 lamellar wings that regulate the speed of transformation – an engineering feat in itself within a 4.3mm subassembly consisting of 80 parts. Also unprecedented is its centrifugal force regulator that works in tandem with the MB M Calibre 16.29. The entire complication yields 567 individual components.

3. It helps if it's highly complicated Many collectors are look out for high end complications like Perpetual Calendar, tourbillon, moon phases and power reserve indicators. Perpetual calenders keeps the day, date, month and year perfectly while Tourbillons minimise the error causing effects of gravity. Minute repeaters like the Patek Philippe Grand Complications piece are considered highly complicated due to its turn on turn off chiming mechanisms. 

Roger Dubuis Double Tourbillon

The Roger Dubuis Double Tourbillon RD01 manual hand-wind movement has been improved since its initial 2005 launch; over 30 components have been re-designed and manufactured. The double flying tourbillon cages are set between four and five o’clock and seven and eight o’clock, both making one revolution per minute, keeping close to perfect time for the 360-degree jumping hour hand and retrograde dragging minute hands. Amazingly, even with two power-hungry tourbillons, this watch keeps ticking for 48 hours.

4. Think long term investment It won't appreciate overnight, you never buy and sell it off the next day UNLESS you happen to own the last timepiece on the planet and some rich collector is pounding your door because he has to have it.

Corum Golden Bridge Tourbillon

The Corum Golden Bridge Tourbillion bridges art and engineering in fine style. It took two years of effort to breathe life into calibre CO212, which is considered a masterwork in micromechanics, involving 182 components on a 33mm by 3mm sliver baguette.

5. The value of the watch is worth what collectors are willing to pay Unless your watch is packed to the brim with precious metals and stones, chances are the true value is highly dependent on what other collectors are willing to pay for it.

Omega Central Co-Axial Tourbillon

With the Omega Central Co-Axial Tourbillon, the calibre 2636 represents minute and hour hands using two concentric sapphire discs with the regulator of the tourbillon serving as the seconds hand. This 45-hour power reserve marvel oscillates at 21,600 featuring a Breguet balance-spring and a one revolution per minute titanium tourbillon cage. Technically and aesthetically outstanding, the movement is hand polished and luxuriously brushed with circular graining finish and anthracite galvanic processing.

Don't forget Emotional and Sentimental value Watch collecting is tougher due to the very personal and emotional nature of the investment. It's like investing in art, it's a statement of who you are and the level of appreciation one has in a fine horological engineering.

Lastly, keep the boxes and documents Collectors value what ebay calls "box and paper". Not having these items literally means halving your investment value. Not even getting certification papers from LVMH or Omega counts for anything when listing your watch for auction.

For a highly detailed look at these watches, look out for the RETAIL VALUE section in the August 2010 issue of August Man.