We watch aficionados know that gold watches are a timeless classic that can look good in almost any situation—however, you might be wondering if a gold watch is as good of an investment as it is a fashion choice.
In the world of luxury watches, it can be tempting to see a high-quality gold watch as a solid choice for investment.
Gold watches are overall not the safest investment because there are many unknown variables. Generally, collectibles such as watches do not increase in value over time, and it is difficult to predict whether a watch will be successful years ahead. If you want to purchase a gold watch as an investment, it will require meticulous research and a degree of risk.
So, gold watches may not be as easy to invest in as they are to wear, but this does not mean it is impossible.
Keep reading to learn more about the risk factors behind investing in a gold watch, as well as some guidelines to follow if you do choose to invest in this unique form of luxury jewelry.
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Should You Invest in a Gold Watch?
I love a good timepiece as well as anyone else, and I fully subscribe to the age-old saying that gold never goes out of style.
However, are gold watches a good monetary investment? This is a question that is common among those who love to collect and admire watches.
In general, you should avoid thinking about gold watches as a purely financial investment, such as investing in stocks or real estate.
Several factors can make gold watches an overall risky investment.
The time for return
As you may know, vintage or antique watches can net a lot of money on the luxury goods market. Some people who bought Rolexes or other high-end watch brands fifty or more years ago can now see a return of thousands of dollars or more on their investment.
However, it is worth noting that this turnaround takes years in the making. If you need to make a fast profit, you should avoid buying a gold watch as it could take fifty years before you see the wealth coming back to you.
I don’t know about you, but I certainly do not have that kind of patience.
The unpredictability of watch value
Some watch companies have been around for centuries and have garnered a reputation as leaders in the timepiece industry.
Despite this, the enduring nature of watch companies is not necessarily the norm. There are many instances where watch companies that were popular decades ago have since gone out of style or have seen their products devalued.
So, if you are thinking about purchasing a gold watch as an investment item, think twice about the brand you are choosing.
While it can be reassuring to see a track record of success in a company’s past, this does not necessarily guarantee future success.
Though a high-quality watch will always be a high-quality watch, the desirability of the brand name is not as strongly guaranteed.
This is one of the main reasons that contribute to gold watches’ status as a risky investment, and why you should carefully research before investing in a watch.
The price of gold
The price of gold can fluctuate over time, especially in tumultuous political or economic times. But, as we both know, it is impossible to have any personal control over the political environment.
If you buy gold high, you will not be able to determine for sure if the price will necessarily be as high when you choose to sell.
In general, gold does trend upward over time, but there are certainly massive fluctuations. Though we all wish we had a crystal ball, there’s no way to know the future for sure.
Your gold watch may devalue if the circumstances are not in your favor.
The cost of upkeep
Gold watches will not necessarily be able to sit in a safe untouched for fifty years, even if you are planning on a long-term investment.
And, of course, part of the joy of watch ownership is wearing your timepiece. Naturally, there are some required maintenance procedures to keep your watch in tiptop shape.
These can include the following:
- Recommended servicing every 3-5 years
- Dry oil for mechanical watches
- Battery failure for battery-powered watches
The more expensive your gold watch is, the more likely you will need to have complicated services and maintenance checks done on it—and this comes at a price.
If you are thinking about investing in a gold watch, factor these costs in and subtract them from the money you someday hope to make.
Things to Know Before Buying a Gold Watch
Now that I’ve given you plenty of warning about the risks in this investment, know that it is still perfectly normal to want to invest in a gold watch.
Gold watches can be a great investment if you want to think of it as a family heirloom or something you can wear every day with pride.
Here are some tips to consider before buying your gold watch:
- Consider it a personal investment. Though you may not see a huge increase in money, you probably won’t lose money either. Consider it an opportunity to own a remarkable watch and someday make your money back.
- Do your research. Get to know the brand and see how it has done over time. Talk to experts and get their read on how the value may change.
- Look for warranty options. Try to find a watch brand that will reimburse you or repair the watch if things go awry. This way, you can reduce your investment in up-keeping or fixing the watch.
Your gold watch can be a great addition to your life and taking the necessary precautions will help ensure that you will make the right investment.
Though we shouldn’t think of gold watches as a killer investment, they do have real sentimental value and the opportunity to make some money back.
The bottom line is this: don’t buy a gold watch if you’re hoping to someday make a killing but do buy one if you genuinely appreciate the style and beauty and are looking for something that can withstand the test of time.