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Research Outline

Prepared for Jeffrey F. | Delivered July 12, 2020

Return on Luxury Watches

Goals

To identify information related to the annual % return on luxury watches (defined as those priced at $100,000 or more) over the last 20 years, ideally in the form of a luxury watch price index or the typical % return on luxury watch brands such as Rolex, Audemar Piguet, Richard Millie and Patek Phillipe.

Early Findings

Overall Luxury Watch Price Appreciation

  • According to The New York Times, luxury watches are expected to appreciate by 69% between 2015 and 2025.
  • In parallel, industry experts such as Time Rating report a much stronger price growth of 487% for vintage luxury watches, particularly due to buyer demand in China and the Middle East.
  • However, industry experts also suggest that only 20% of all luxury watches represent a "profitable investment."
  • Specifically, Time Rating asserts that a luxury watch must be "attractive and popular" to grow in value over time.

Individual Luxury Watch Price Appreciation

  • Price tracking websites such as Collector Square and Time Rating provide more detailed statistics on the sale price of luxury watches over time.
  • For example, Collector Square reports that the price of the Patek Philippe Grande Complication (currently priced well over $100,000) has not necessarily enjoyed significant price growth over the past decade.
  • In contrast, a variety of lower-priced Rolex watches have appreciated significantly in value since 1994.