Why buy a pre-owned watch?
When it comes to the world of luxury goods, it can be a fantastic idea to buy a pre-owned luxury watch. There are many reasons why the second-hand luxury watch and jewellery market boomed and dominated new sales during 2020. This was largely down to the growth of eCommerce and online auction sales.
PRE-owned can be cheaper
The most compelling reason to buy a pre-owned watch is often the price. A brand new watch can be very expensive and older models can often be obtained for a much lower price. For example, it’s usually much cheaper to buy a 1960s Rolex Air King than it is to buy a brand new version of the same model, and second-hand watch dealers often sell watches at a lower profit margin than a new luxury watch brand or retailer would be willing to. Also, If you buy a pre-owned watch, you can buy through auction houses such as Fellows or Sotheby’s where you can often get a good deal.
PRE-OWNED DEPRECIATEs SLOWER
Much like cars, watches and jewellery often depreciate the most when they are purchased and used for the first time. Watches and jewellery with a single owner will likely cost more than pieces that have had multiple owners, even if the item is in perfect condition, has a box and papers and bought from a trusted seller. Imagine the price drop of a new watch after just two years and then imagine a 1996 Rolex Submariner sold two years later. They can often remain at the same price or even increase given the right market conditions.
Larger Range of Models and Designs
Every year Rolex, Omega, Breitling and Philippe Patek make changes to their product lines. In January 2021, Omega made a bold move to launch a brand new Speedmaster model and they stopped making the old one. If your buying luxury watches because they look good, having a wider range of second-hand options might be a better option for you. Rolex have stopped making the Submariner with a date dial however it can still be bought in the second-hand market. When companies make changes like this, it is great for collectors.
A MUCH BETTER INVESTMENT
When it comes to investments, it is worth considering having part of your portfolio invested in luxury assets. In 2020, we certainly saw how some second-hand watches can rise in price.
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© 2021 Suros Capital – all rights reserved. Suros Capital is a trading name of Hopkins & Jones Limited who are authorised and regulated by the Financial Conduct Authority. Firm reference number 731198. www.suroscapital.co.uk is a site operated by Hopkins & Jones Limited, registered in England under company number 433606. Registered office: 88 Fleet Street, London EC4Y 1DH. VAT number: 238 8280 37.