Are watches a good investment?

Generally no, for the same reasons most physical collectibles are not: illiquidity, wide bid-ask spreads, storage and insurance costs, and no income. A few references have appreciated substantially, but selecting them in advance is difficult and the category as a whole does not behave like an investment class.

Does servicing improve resale value?

A recent service with documentation reassures buyers and can help, provided it preserved originality. A service that polished the case or replaced original parts can reduce value on a collectible piece. Keep the paperwork and specify that original components be retained and returned.

Do limited editions hold value better?

Not reliably. Limited production only supports value if demand exceeds the limit, and many limited editions are limited to numbers well above genuine demand. Some perform strongly; many trade below standard production models from the same brand.

Is buying at retail or pre-owned better for value?

Pre-owned generally, since the first owner absorbed the initial depreciation. The exception is references with waiting lists, where retail access is itself valuable and pre-owned trades above list. For everything else, a well-documented pre-owned example is the more efficient purchase.

Horology Database Blog

Do Luxury Watches Hold Their Value?

Updated June 10, 2026 · 6 min read · The Horology Database Team

TL;DR. Most do not. A small number of steel sports models from a handful of brands hold or exceed retail, and that visible minority shapes the general belief. The typical luxury watch loses a substantial share of its price the moment it leaves the boutique, like most consumer goods.

The idea that watches are an investment is one of the more successful pieces of received wisdom in the category, and it survives because the exceptions are extremely visible. Auction records and waiting lists get written about; the watch that sold for half its retail price three years later does not.

Which watches actually hold value?

Steel sports models with production constrained below demand, from a small group of established makers, plus historically significant vintage references with documented provenance. The common factor is scarcity relative to demand, not craftsmanship, precious metal content or complication count.

This is why a steel sports watch can outperform a gold dress watch from the same maker costing three times as much. Value retention tracks how many people want the specific reference against how many exist, which is a market fact rather than a horological one.

What does the typical watch do?

Depreciates. Precious metal dress watches, most complications and nearly everything outside the few sought-after references commonly resell well below retail, particularly once VAT or sales tax is stripped out. Retail price includes distribution margin that the secondary market does not return.

Framing helps here: a watch is a durable good you enjoy, and the ones that hold value are a fortunate exception rather than the design intent. Buying primarily for resale means competing with dealers who do it professionally and know the market better than a private buyer does.

Horology Database showing reference and specification data used when researching a watch purchase — Reference-level data matters: value tracks the specific reference, not the model family.

What preserves value on a watch you own?

Keep the box, warranty card, receipts and service records together. Avoid case polishing, which removes metal and sharp edges permanently. Retain original components when servicing and ask for replaced parts back. Store it dry and away from magnets, and keep it running or properly stored.

Polishing deserves emphasis because it is routinely offered as a courtesy at service and quietly reduces value on anything collectible. Sharp, unpolished lugs are a large part of what separates a good example from an average one, and no amount of later care restores removed metal.

Researching a reference before buying or selling? Horology Database holds specification and movement data across thousands of watches.

Is the secondary market reliable as a guide?

Listed asking prices are not transaction prices, and the gap can be wide. Dealer listings, auction results and private sales all price differently, and published indices track a narrow set of high-demand references rather than the market as a whole. Read them as indicative, not definitive.

Prices in this category have also proven volatile. The period around 2021 and 2022 saw sharp rises in certain references followed by substantial falls, which caught out buyers who had treated recent gains as a trend. Anyone quoting watch returns should be asked which references and over what window.

Key takeaways

Most luxury watches depreciate; the exceptions are visible enough to distort perception.
Value retention tracks scarcity against demand, not craftsmanship or metal content.
Retail price includes distribution margin the secondary market does not return.
Polishing a case permanently removes metal and reduces collectible value.
Asking prices are not transaction prices, and published indices cover a narrow set.

Frequently asked questions

Are watches a good investment?: Generally no, for the same reasons most physical collectibles are not: illiquidity, wide bid-ask spreads, storage and insurance costs, and no income. A few references have appreciated substantially, but selecting them in advance is difficult and the category as a whole does not behave like an investment class.
Does servicing improve resale value?: A recent service with documentation reassures buyers and can help, provided it preserved originality. A service that polished the case or replaced original parts can reduce value on a collectible piece. Keep the paperwork and specify that original components be retained and returned.
Do limited editions hold value better?: Not reliably. Limited production only supports value if demand exceeds the limit, and many limited editions are limited to numbers well above genuine demand. Some perform strongly; many trade below standard production models from the same brand.
Is buying at retail or pre-owned better for value?: Pre-owned generally, since the first owner absorbed the initial depreciation. The exception is references with waiting lists, where retail access is itself valuable and pre-owned trades above list. For everything else, a well-documented pre-owned example is the more efficient purchase.

The Horology Database Team
Watchmaking & Reference, BigBalli. We maintain specification and movement data across thousands of references, cross-checked against COSC, ISO standards and manufacturer documentation. Not financial advice.