Luxury watches have gone from just being achievement pieces to the perfect place to park your money. While the rich are still investing in real estate, they have diversified their investments and one of the asset classes they have opted for is luxury watches. There are several reasons why these watches have become good investments. Let's explore these factors.

Luxury Watches: A Booming Industry

Watches were only considered an accessory that tells time. With our smartphones always in our hands, we dont even look at our watches anymore. But what matters is that the others are looking at your wrist. Unfortunately, we live in a world where people judge you on the basis of what you wear, what you drive and where you live. You cannot always shout out that you live in the Palm Jumeriah or drive your Ferrari right in the middle of a meeting. But what you can do is wear a flashy timepiece.

So, these days as soon as people make their money in real estate or any business for that matter, the first thing they do is buy a nice luxury watch. The benefits of buying luxury watches in Dubai are more than just being able to drag attention.

Value Appreciation

Limited edition and vintage watches often appreciate significantly over time. Brands like Rolex, Patek Philippe, and Audemars Piguet are known for their value retention and growth. While not all watches will give you stupendous returns on your investment but that one right piece can help you make quite a lot of money.

It all depends on the situation. For example, when the Rolex Daytona John Mayer got discontinued, the prices in the secondary market just sky-rocketed. Same was seen for the Patek Philippe 5711 and the Rolex Oyster Perpetual Tiffany.

Tangible & Liquid Asset

Unlike stocks or cryptocurrencies, luxury watches are physical assets that can be enjoyed and worn, adding a personal touch to the investment. These are also considered as liquid assets, which brings us back to the topic of this article. While Real Estate can give great returns, but there can be times where you can get stuck with an off-plan property or it might take a lot of time to find the right buyer.

With watches, that is not the case. As long as you invested in the right watches, you can sell them anytime. Even if you are on a trip somewhere in the world, these watches can act as your ticket to home. Just visit any watch dealer, sell it in about 15-20mins and walk out with cash.

The Perfect Hedge

High-end luxury watches tend to hold their value and can even appreciate during inflationary periods. People who are heavily invested in real estate, do like to hedge their portfolio with some stocks and gold. Similarly, investing in watches can also help you to further diversify your investments and in a time of need, you will always find your way towards some cash.

More than just a Status Symbol

Wearing a Rolex or an AP does you give you that pride but most people have started to understand that these watches are more than just status symbols. Yes, it does draw attention, but these watches can also prove to be great investments. As proven in the points above, these type of luxury watches could be just the right place to park your money!