Headlines about watches selling for millions at auction create the impression that watches are a great investment. The reality is more nuanced: most watches lose value, a small number hold it well, and a very few appreciate. Buy a watch to enjoy it — and understand the factors that protect its value.
This article is general information for enthusiasts, not investment advice. Watch prices can fall as well as rise, markets are illiquid, and past performance does not predict the future. Consult a qualified financial adviser before treating any purchase as an investment.
Why most watches depreciate
- Retail markups — a significant part of a new watch's price is dealer margin and marketing.
- Supply — most brands produce as many watches as the market will absorb.
- Discounts — grey-market and dealer discounts undercut resale.
- Wear and servicing — used watches need service, reducing what buyers will pay.
As a rough guide, many mid-range and fashion brands can lose 30–60% of their retail price on resale, while a handful of luxury references hold near retail or above.
What tends to hold value
| Category | Typical value retention | Examples |
|---|---|---|
| High-demand steel sports models from top brands | Strongest, sometimes above retail | Rolex Submariner, GMT-Master II, Daytona; Patek Nautilus; AP Royal Oak |
| Other Rolex models | Strong | Datejust, Explorer, Oyster Perpetual |
| Iconic luxury models | Moderate to good | Omega Speedmaster, Cartier Tank and Santos, Tudor Black Bay |
| Most luxury and mid-range | Moderate depreciation | Many models from Omega, Breitling, IWC, TAG Heuer, Longines |
| Fashion, microbrands, entry-level | Heavy depreciation | Fashion-brand quartz, most microbrands |
| Smartwatches | Very heavy | Technology obsolescence |
Secondary-market prices fluctuate significantly. After a sharp rise in 2020–2022, prices for many popular luxury models fell back substantially. Nothing is guaranteed.
Factors that drive value
- Brand — Rolex, Patek Philippe and Audemars Piguet dominate the resale market.
- Model and reference — iconic, recognisable references outperform obscure ones.
- Scarcity — limited production, discontinued references, unusual dial variants.
- Material — steel sports models are often the most liquid; precious metals depend on demand.
- Condition — unpolished, original cases and dials command premiums.
- Completeness — box, papers, tags, receipts and service records ("full set").
- Provenance — celebrity or historic ownership can add enormous value.
- Market sentiment — fashions change; today's hot model can cool.
How to protect your watch's value
- Keep everything — box, papers, receipt, spare links, tags, manuals.
- Avoid unnecessary polishing — ask your service centre not to polish the case.
- Service with the brand or authorised centres and keep records.
- Never add aftermarket parts — diamonds, custom dials or coatings usually destroy value.
- Store properly — see storage guide.
- Insure valuable watches.
The healthiest mindset
Think of a watch as a durable luxury good that may retain some of its value — not a savings account. The best "return" is years of enjoyment and, perhaps, an heirloom to pass on. If a watch holds its value, that's a bonus that makes it easier to trade up later.
FAQ
Do Rolex watches go up in value?
Some popular steel Rolex models have historically resold at or above retail, but prices fluctuate and many fell from their 2022 peak. There is no guarantee any watch will appreciate.
What is the best watch to buy that holds its value?
Historically, steel sports models from Rolex, Patek Philippe and Audemars Piguet have been the strongest. Among more accessible brands, the Omega Speedmaster, Cartier Tank and Tudor Black Bay tend to hold value comparatively well.
