Fractionally invest in the timelessness of luxury watches.
In recent times, the secondhand watch market has gained significant traction, driven by heightened buyer interest and a scarcity of sought-after models. Surprisingly, this surge in popularity is primarily motivated by financial considerations rather than purely aesthetic appeal. There is a growing trend of luxury watches being seen as alternative investments, resulting in increased demand. Buyers are willingly paying significant premiums for preowned timepieces from renowned brands like Rolex, Patek Philippe, and Audemars Piguet. Moreover, independent watchmakers such as F.P.Journe.
According to the Boston Consulting Group’s most recent study, luxury watches have performed very well in relation to traditional investments. From August 2018 to January 2023, average prices in the secondary market for top models from the three largest luxury Swiss watchmakers; Rolex, Patek Philippe, and Audemars Piguet, rose at an annual rate of 20%, despite broader market drops during the pandemic, compared with an annual rate of 8% for the S&P 500 index. Luxury watch prices also outperformed the S&P during the 2007–2009 recession and took less than two years to recover from the 2008 market crash, while many traditional financial categories and consumer products categories took longer.
As seen below, the big three average, consisting of Rolex, Patek Philippe, and Audemars Piguet, in line and at times exceeding the world’s most prominent index:
How can retail investors reap the rewards?
Today’s market is transparent, fuelled by online information sharing, supported by authentication services, and composed of knowledgeable buyers and established sellers. The secondhand market is essential for collectors who seek rare and special watches, given that nearly 95% of watches are no longer in production. However, factoring in storage and insurance is always the hardest part, and where the fun kind of ends, unless you go through an expert. Investors globally are seeing alternative investments to diversify their portfolios as a hedge against inflation.
Locked access. Previously, such assets were only reserved for a select few. But why?
Storage:
The watch needs to be kept in a secure and controlled environment and protected from extreme temperature variations, humidity, and direct sunlight, as they can damage movement and affect its value
Authentication:
Experts need to ensure the watch's authenticity by obtaining proper documentation, including the original box, papers, and certificates
Validating the Investment Case:
Research and understanding the brand's reputation, historical significance, and market demand for the specific model is required
Market value data is driven through reputable sources, auction results, and watch forums
Insurance:
There are necessary steps to ensure that all watches are protected through insurance coverage. This means that each watch should be covered by a specialized insurance policy that safeguards its full value. By insuring watches, you mitigate the risk of financial loss in the event of theft, damage, or other unforeseen circumstances.
But we took care of it for you!
How to start investing in watches with Splint Invest:
Do you have a credit card and a smartphone? Then you can start benefiting from the price appreciation of watches today as well! Within two minutes, you can set up your account and browse through our platform. We fractionalize rare luxury watches into shares, or so-called “Splints”, making the asset accessible to everyone. Our certified experts carefully evaluate every investment to ensure only the best opportunities for you.
We help private investors diversify their portfolio by providing easy access to alternative investments. We'd love to have you as part of our community; so here’s a little gift to get you started; redeem this code upon creating your account:
