Luxury watches are often spoken about as “investments,” but their true resale value depends on far more than brand names or glossy marketing. Some models will hold value remarkably well, while others depreciate the moment they leave the boutique. This guide sets out the practical factors that influence retention, helping you take a level-headed view.
What “holding value” really means
When people say a watch “holds its value,” they usually mean one of two things:
- Relative to RRP: Does it sell pre-owned close to—or even above—its retail price?
- Relative to ownership cost: After accounting for servicing, insurance, and dealer fees, how much would you realistically get back if you sold?
In truth, very few watches appreciate significantly. More often, a strong luxury watch resale value means the loss is smaller than with other luxury goods.
Drivers of retention: brand equity and model lineage
Certain names carry more weight than others. Brands with deep heritage, recognised designs, and broad service networks are likelier to sustain investment watch appeal. Within those catalogues, long-running models—think classic divers, chronographs, or iconic steel sports watches—are generally more liquid than niche dress pieces.
It isn’t just the logo, though. A watch that sits in a clear lineage, with minimal design changes over decades, tends to reassure buyers it won’t become unfashionable overnight.
Supply, scarcity, and the limits of “limited”
Scarcity matters, but only when it’s real. Limited edition watches can be a double-edged sword: some soar because demand dwarfs supply, others stagnate if they feel like a marketing exercise. A production cap of 10,000 units isn’t truly rare if buyers lose interest.
By contrast, models in permanent production that are chronically under-supplied—especially steel sports references—often outperform official “limited runs.” The secondary market rewards genuine difficulty in obtaining a watch, not just what’s printed on the caseback.
Condition, box & papers, and service history
Collectors pay for reassurance. The following factors directly impact resale value:
- Condition: Original, unpolished cases are prized; heavy refinishing knocks appeal.
- Box and papers: Complete sets add trust and value; missing accessories reduce liquidity.
- Service history: Proof of recent official servicing boosts confidence, though over-servicing or lost originality can dampen collector interest.
For modern pieces, “full set” status is almost expected.
Macro cycles and why timing the market is hard
Watch prices are not immune to wider economic trends. After 2020, some hype models doubled in secondary value, only to soften as markets cooled. Trying to “time” these market cycles is notoriously difficult, and many owners end up chasing peaks and troughs rather than enjoying the watch itself.
Long term, resilience tends to track brand strength and timeless design, not speculative bubbles.
Buy for love first: a responsible approach
The safest philosophy is to buy what you genuinely enjoy wearing. A luxury watch is a personal companion as much as a financial object. If it happens to hold value well, that’s a bonus. If not, the years of use should justify the outlay.
For those set on exploring the market angle, stick to reputable dealers, documented service histories, and brands with enduring recognition. Even if you happen to win a luxury watch through a raffle or promotion, treat it with the same lens: condition, demand, and long-term serviceability will still dictate its resale strength.
Final thought
A true investment watch is rare. More often, good retention is about careful buying, patient holding, and choosing models with proven desirability. But above all, the watch should reward you daily, on your wrist, not just in a future listing.
