Appreciation in Value of Watches
Value Appreciation of the Patek Philippe Nautilus
When Patek Philippe announced they would discontinue the steel Nautilus, the value of these watches skyrocketed. The model itself is one of the most popular, and in many cases, these watches are now worth more than 1 million SEK. Most sellers today ask for around 1.3 million SEK for a Patek Philippe Nautilus. Many people are on waiting lists for a Nautilus and have waited years for the opportunity to buy one, only to now disappointingly realize they will be forced to pay over a million for a model with a list price of 300,000+ SEK. But why did Patek Philippe choose to stop selling its most popular model? Their own CEO states that the watch fell victim to its own popularity. The model is the most affordable in the range, while simultaneously dominating the brand’s image due to its popularity.
A watch purchased solely for resale dilutes the brand and causes it to lose much of its credibility. Hence this bold decision, which in a way triggers exactly what Patek wanted to avoid. Because now, the value is increasing even more.
For those who already own a Nautilus, this is of course incredibly encouraging news. It naturally means you have the opportunity to make a significant profit when you sell the watch. However, with an increase in value comes a very important detail that is easy to forget: reviewing your insurance. Firstly, you should ensure you have watch insurance with favorable terms, and secondly, that the correct value is specified in the policy. Contact us at Brookfield if you wish to increase the insured value of your Nautilus or would like to take out a policy.
Depreciation
Watches and other collectibles are examples of items that risk losing value after a repair. If your vintage watch is damaged and cannot be repaired with original parts, it may lose market value.
Check with your insurance company to ensure you are compensated for this should damage occur.
Value Appreciation of Rolex Sea-Dweller & Audemars Piguet’s Royal Oak Jumbo
Only a few watches increase in value over time, and certain brands and models appreciate more than others. On the marketplace chrono24.com, one can see how the Rolex Sea-Dweller has doubled in value over the last ten years. Audemars Piguet’s Royal Oak Jumbo is another example of a classic watch model that has significantly increased in value recently. The exact designation of the model in question is the Royal Oak Jumbo Extra Thin ref. 15202ST.
Ensure that your insurance company does not apply age-based depreciation to watches and jewellery purchased as new.
Which watch brands increase in value?
Watch brands known for retaining or increasing in value include Rolex, IWC, Audemars Piguet, and Patek Philippe—though certain models are more sought after and appreciate more than others. There are also trends regarding which watches increase in value over a certain period.
Some models are in higher demand than others, such as the Patek Philippe Nautilus and the Rolex Daytona. However, only a few watches actually increase in value over time.
How do I know which watch is worth investing in?
Reading watch forums and blogs, and visiting sites that buy and sell watches, can help you navigate the watch market in search of a beautiful and unique timepiece.
If, however, you are looking for an investment, you should hire a watch expert who can help you monitor the market until the right opportunity arises.
Why do some watches increase in value?
Many factors influence why a watch increases in value. First and foremost, it is a matter of supply and demand. Some brands and models are simply more popular and harder to obtain. You may have to spend many years on a waiting list at an authorized dealer to acquire a specific watch.
And sometimes, even the waiting list is full. If a watch is already highly sought after and difficult to obtain, supply and demand will affect the price even more in the future. In summary, the harder it is to acquire a well-known and popular watch, the more it is likely worth.
Caring for Your Watch
The condition of the watch is crucial. Impact damage and scratches should be avoided. Insurance without a deductible helps you maintain perfect condition over time, as you can submit the watch for repair even for minor and purely aesthetic damage. An advantage is being able to return to the same store where you purchased the watch to ensure it is repaired with original parts by a professional.
At Brookfield, we have collaborated for several years with authorized watch dealers in Sweden and offer repairs without a deductible at the place of purchase.
Insurance Upon Value Appreciation
If your watch has increased in value since you took out your insurance, you should contact your insurance company to report this. In the event of a loss, this is crucial for receiving the correct compensation.
We use an annual index to adjust amounts, but it is your responsibility as the policyholder to ensure that the sums insured are sufficient. Occasionally, you may need to have your watch revalued to determine its current value.
Value Your Watch
We offer online valuation in collaboration with Barnebys. By providing details about your watch and uploading a few photos, you can have your watch valued within 48 hours by an expert from Sotheby’s or Christie’s.
We also recommend Chrono24.com, where you as a watch collector can buy and sell watches and receive assistance with valuation.
Insure Your Watch
A high-value watch differs from other valuables. Not only because it is valuable, but primarily because it is an accessory you likely wear daily. This increases the risk of loss and damage. Whether it involves theft and robbery, or if you unfortunately drop your watch, watch insurance allows you to receive compensation for such events.
At Brookfield, we can develop specific protection for your watch to ensure you have insurance up to a sufficient amount with coverage tailored specifically for precious timepieces.
Read more about our watch insurance or request a quote.