How To Invest In Luxury Watches In 2025 (ROI, Tips & Best Watches)

In a world where traditional investments are increasingly volatile, luxury watches have emerged as a tangible, status-driven asset class—blending cultural prestige with market-beating returns. In 2025, seasoned investors aren’t just buying Rolexes to wear—they’re holding them like fine wine or art, watching their value surge in tightly controlled, supply-restricted markets.

This isn’t about fashion. It’s about fundamentals: limited production, high global demand, and a fiercely active secondary market that rewards rarity, provenance, and condition.

Models like the Patek Philippe Nautilus 5711, Audemars Piguet Royal Oak Jumbo, and F.P. Journe Chronomètre Bleu have seen returns that rival equities—if not outperform them—when sourced and stored correctly.

Investing in luxury watches demands more than taste. You’ll need to understand how box and papers, waiting lists, service history, and reference numbers affect resale value. You’ll need a strategy for navigating both the authorized dealer network and the unpredictable, often risky grey market.

And you’ll need to protect your capital with proper insurance, storage, and authentication protocols.

This guide will walk you through the real mechanics of investing in luxury watches in 2025—from identifying which timepieces have upside, to understanding liquidity risks, resale channels, and the financial metrics behind the hype.

Benefits of Investing in Luxury Watches

• Tangible and portable asset: Unlike equities or digital investments, luxury watches are physical assets you can wear, store, and transport. They don’t require custodians or intermediaries, offering direct control over your investment.
  
  
• Historical appreciation on key models: Watches like the Rolex Submariner, Patek Philippe Nautilus 5711, and Audemars Piguet Royal Oak Jumbo have shown significant long-term price growth, often outperforming traditional asset classes when held over time.
  
  
• Scarcity-driven value: Top brands produce in limited quantities. Patek Philippe’s yearly output is capped at ~68,000 units, and Richard Mille’s is even lower—driving consistent upward pressure on secondhand prices for iconic references.
  
  
• Low correlation with financial markets: Luxury watches act as an alternative asset class, typically holding value during economic downturns or inflationary cycles. They are not directly tied to stock or bond market performance.
  
  
• Global liquidity and resale demand: High-demand models can be sold almost instantly across global marketplaces, auction houses, and boutique resellers. This makes them one of the most liquid collectibles in the world.
  
  
• Favorable tax treatment in some jurisdictions: In certain countries, capital gains on personal-use collectibles like watches may be tax-free or taxed at lower rates—offering a discreet and efficient investment vehicle.
  
  

Steps to Start Investing in Luxury Watches

• Clarify your investment intent and time horizon: Decide whether your strategy is long-term capital preservation (5–10 years), mid-term appreciation (2–5 years), or short-term flipping. Each requires different models, risk tolerance, and exit strategies.
  
  For example, flipping recent Rolex Submariners may yield ~15–20% profit in under 12 months, while holding a discontinued Patek Philippe Nautilus for a decade could result in triple-digit appreciation.
  
  
• Set a budget that matches your target tier: Most entry-level investment pieces start around €5,000–€7,000 (e.g., Omega Speedmaster Professional). For serious appreciation potential, budget €10,000–€25,000 for key Rolex sports models or €30,000+ for Patek, AP, or Richard Mille.
  
  Expect to pay a premium of 10%–50% above retail for highly coveted models on the secondary market due to demand.
  
  
• Learn the market by reference, not just brand: Every investment-grade watch has a specific reference number that determines resale value. For example:
  • Rolex Daytona Ref. 116500LN (Black Dial): Resale price in 2025 averages €32,000 vs. €14,750 retail
  • Patek Philippe Nautilus Ref. 5711/1A-010: Discontinued in 2022, now trades between €100,000–€130,000
  • AP Royal Oak Jumbo Ref. 16202: Trades around €75,000 vs. ~€35,000 retail
    
    
• Choose between retail allocation and secondary market: Getting a watch at retail from an authorized dealer (AD) offers immediate equity, but access is limited by waitlists and spending history. For instance, Rolex Daytona or Patek Aquanaut models often require prior purchases or VIP status.
  
  Most new investors begin on the secondary market, paying a premium but avoiding years-long waitlists.
  
  
• Prioritize condition, provenance, and completeness: A watch with original box, papers, warranty card, and accessories (full set) can command 10%–30% more on resale than one without. A well-documented service history from the brand or certified center adds further value and trust.
  
  
• Authenticate before you buy—especially pre-owned: Use third-party services or purchase through platforms that offer in-house authentication. Counterfeits are sophisticated—check the movement, reference engraving, and serial number consistency.
  
  
• Understand how production rarity impacts value: Limited production runs and discontinued models drive long-term appreciation. Watches like the F.P. Journe Chronomètre Bleu (fewer than 1,000 produced annually) or Richard Mille RM 011 Felipe Massa editions (often capped under 100 units) consistently outperform mass-produced models in the secondary market.
  
  
• Consider servicing and maintenance costs: Luxury watches require servicing every 4–7 years. Expect costs of:
  • €500–€1,000 for Rolex
  • €1,000–€2,000 for Patek Philippe or AP
  • €2,000+ for Richard Mille or tourbillon-equipped pieces
    
    
    Factor this into your total cost of ownership to avoid surprises and maintain investment-grade condition.
    
    
• Protect your investment with proper insurance: Secure a specialty watch insurance policy that covers theft, damage, and market value (not retail price).
  
  
• Track resale value trends and exit liquidity: Follow secondary market platforms like Chrono24, WatchCharts, and Subdial Index to monitor pricing trends. High-liquidity models (Rolex Submariner, Omega Speedmaster, Cartier Tank) offer tighter bid-ask spreads and easier exits, while niche independents may require longer holding periods and targeted buyers.
  
  

Factors That Determine the Value of a Watch

The value of a luxury watch is not determined solely by its brand. While Rolex, Patek Philippe, and Audemars Piguet dominate the investment market, what drives price appreciation on the secondary market in 2025 comes down to a combination of objective fundamentals and collector psychology.

One of the most critical value factors is the reference number. A specific reference—not just the model—can dictate whether a watch is worth €10,000 or €100,000.

For example, the Rolex Submariner Ref. 16610LV “Kermit” carries a premium over other Sub references due to its limited production window and collector status. Similarly, the Patek Philippe Nautilus Ref. 5711/1A trades at 6–8 times its original retail price largely due to being discontinued and highly sought after by collectors and investors alike.

Rarity plays a central role. Limited production runs, low total output, or discontinued pieces often command significantly higher values. Brands like F.P. Journe and Richard Mille maintain exclusivity through tight production control, creating upward price pressure.

For instance, an F.P. Journe Chronomètre Bleu—a model with under 1,000 units produced per year—has risen from under €25,000 to over €75,000 in less than a decade.

Condition is another key driver. Unworn or “new old stock” pieces often sell for 20–40% more than their lightly worn counterparts. Even within used watches, a full set—including original box, warranty card, papers, hang tags, and receipts—can increase the resale price by 10–30%.

Watches with polished cases, missing paperwork, or unauthorized service history tend to lose collector appeal and pricing leverage.

Provenance and originality further impact valuation. A well-documented service history, preferably performed by the manufacturer or an authorized center, signals authenticity and care—two attributes that drive higher resale value. Watches with replaced parts, aftermarket modifications, or inconsistent engravings often trade at a significant discount.

Market dynamics also matter. Popularity within collector communities, trending visibility on platforms like WatchCharts or Chrono24, and even media attention can cause short-term spikes. Watches worn by celebrities or featured in high-profile auctions—like Paul Newman’s Daytona—have created demand surges that ripple through the broader market.

Finally, macro factors such as currency strength, economic uncertainty, or inflation often push capital into hard assets. During such times, tangible luxury investments like watches see elevated demand.

In 2025, with global interest rates fluctuating and equity markets uncertain, watch investors continue to favor models with historical resilience, strong brand equity, and limited supply.

Best Investment-Grade Watches (2025)

New vs. Pre-Owned Watches for Investment

Storage Tips for Investment-Grade Watches

Proper storage is a critical but often overlooked element of luxury watch investing. In 2025, as prices for collectible timepieces continue to climb, preserving physical condition is just as important as selecting the right reference. Scratches, moisture exposure, magnetism, or poor storage environments can erode thousands of euros in resale value—especially for unworn or limited-edition pieces.

The first step is to store your watch in a humidity- and temperature-controlled environment. A safe deposit box at a reputable bank offers maximum security and environmental protection, but a home safe with dehumidifying features can also be a solid option—especially if you own multiple pieces and want more flexible access.

Watches that are part of a rotation and worn occasionally should still be kept in a watch box with soft interiors and individual compartments to prevent contact and scratching. Avoid stacking watches or using generic travel rolls for long-term storage.

For automatic watches, many investors use watch winders to keep movements running and lubricated. While winders aren’t necessary for all pieces, they’re helpful for complex mechanical watches with perpetual calendars, moonphases, or annual calendars that are difficult to reset.

If your timepiece is unworn or a collector’s item, it’s best to leave the factory stickers and tags intact, especially if the watch was purchased new. These features, combined with a full set (box, warranty card, manuals, and hangtags), can increase resale value by 10%–30% in the collector market.

Finally, watch insurance is non-negotiable. Specialized insurers can offer policies based on current secondary market valuations—not just retail pricing—ensuring full coverage in the event of theft, fire, or loss. Be sure to document your collection with professional photos, serial numbers, and proof of purchase for every piece.

Investment-Grade Watches vs Traditional Investments

When evaluating investment-grade watches against traditional assets like stocks, bonds, and gold, the numbers speak for themselves. Over the past decade, the performance of certain timepieces has not only rivaled—but in many cases outpaced—mainstream financial instruments.

According to the Knight Frank Luxury Investment Index, watches appreciated by an average of 96% between 2013 and 2023, outperforming classic cars, art, and even gold. Some specific models have dramatically exceeded this average.

The Patek Philippe Nautilus 5711, for instance, sold at retail for around €30,000 before being discontinued in 2022. By mid-2025, clean full-set examples routinely trade for €110,000–€130,000, reflecting an annualized return well above 30%.

Similarly, the Rolex Daytona Ceramic Ref. 116500LN, released in 2016 with a retail price of €13,000, now trades in the €30,000–€34,000 range on the secondary market—a compound annual growth rate (CAGR) of roughly 11%–13%, assuming a 7–8 year holding period.

Contrast that with the S&P 500, which posted a CAGR of ~10.4% from 2014 to 2024. Government bonds and savings accounts, adjusted for inflation, offered real returns closer to 1–2%. Gold—often considered the go-to hedge in uncertain markets—grew by approximately 4% CAGR over the same period.

In addition to appreciation, luxury watches offer unique inflation protection and currency hedging advantages. As tangible assets priced globally, their value tends to rise during currency devaluation or inflationary cycles. In 2022–2023, during high inflation across the U.S. and Europe, the luxury watch market surged as investors sought hard assets.

Another key advantage is lower volatility. While equities and crypto fluctuate daily, high-demand watch models tend to hold steady, even in market downturns. Liquidity, while not instantaneous like a stock sale, remains high through platforms like Chrono24, WatchBox, and Sotheby’s.

However, it’s worth noting that watches are not without risk. Illiquidity for niche models, servicing costs, grey market fraud, and authentication issues all exist. But for informed investors who focus on blue-chip horology—think Rolex, Patek, AP, Richard Mille—the risk-return profile is increasingly compelling.

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