Hands up if you think luxury watches are an investment!
The fact is, most people don’t think of them as anything but what they are, luxuries. After all, luxury Swiss watches in Singapore are not cheap. But, here’s the thing, the affluent and the rich still keep on buying them, and for a good reason – they are great investments!
The value of high-end, quality watches
Most people don’t look past the initial price of a luxury watch. For example, a watch that costs thousands of dollars will be immediately be deemed as nothing more than a luxury. However, for the affluent, they see them as more than that – they see it as something that increases in value over time.
The main reason for this is the law of supply and demand. The most expensive watches have a limited supply in the market. Globally, only a couple of hundreds, if not thousands, are released in a year. A huge portion of that number is only sold directly to repeat buyers, which means that only a handful will ever be seen in the market.
As a result of this exclusivity, what would normally be an already expensive luxury watch, becomes even more valuable.
Turning a hobby into a business
Most people who use luxury watches as an investment don’t really see it that way. For a lot of people, they buy luxury watches as a hobby, and they enjoy doing so. This hobby will then transform into a form of business, either by purchasing luxury watches when they first come out and then selling them at a premium or by trading them for other high-value investments. On the resale market, it’s not unusual for luxury watches to go up as much as 20% to 30% in value in a couple of months.
It is true that some only go up by about 5% to 10% in value, but when you’re talking about money in the hundreds of thousands of dollars, a 5% increase in value is still a lot of money.
Conclusion
Just like in many industries and cultures where hobbyists turn their passion into a business, the same applies to luxury watches.
Buying, selling, and trading luxury watches is just one of the many ways the rich get richer. Although some of us can’t afford to spend hundreds of thousands of dollars on a luxury watch in Singapore, we can always start small and go for the more “affordable” luxury watches on the market.
Here at Leong Poh Kee, we have a range of fashion and luxury watches you can choose from to start your own collection. Check out our product offerings today!