Next-Generation Collectors See Old Timepieces As Hot New Asset In Their Investment Portfolios
Alex Williams
As tattooed rockers, tech bros and Instagram influencers pile into the tweedy world of watch collecting, prices for sought-after classics from brands like Rolex, Omega and Patek Philippe are shooting up. In some cases, they have doubled in just a couple of years.
These next-generation collectors see old timepieces not just as a subtly stylish way to dress up a T-shirt and jeans, but also as a hot new asset in their investment portfolios. In a market where stocks, bonds and real estate seem at an unsteady peak, do vintage watches present a bitcoin-in-2017-like growth opportunity? Or are they in a bitcoin-in-2017-like bubble?
Time — elegantly monitored — will tell.
Even though his investment in watches has doubled in value in just 18 months, Peter Goodwin, a private investor in Charlottesville, Virginia, who also collects watches, said he is concerned about frothiness in the vintage market.
“It’s much like momentum investing in stocks,” he said. “You see them rising and you want to jump on.” “The question,” Goodwin said, “is when does it stop?”
Watch collectors hide in plain sight. John Mayer’s watch collection is nearly as famous as his guitar work. His bank vault contains a vast array of collectibles, including sapphire-encrusted gold Rolexes a nd Luftwaffe watches from World War II, that he has said is valued in the “tens of millions.”
Silicon Valley heavyweights like Kevin Rose, the Digg founder Matt Jacobson, have museum-worthy Rolexes and Patek Philippes, helping to establish a head-turning timepiece as a techworld style flourish to rival the hoodie.
Ellen DeGeneres wore a holy-grail Paul Newman-model Rolex Daytona from the 1960s, now worth perhaps $250,000, while bantering with Jerry Seinfeld in an episode of “Comedians in Cars Getting Coffee” last year.
What even makes a watch valuable? Consider the bezel insert from a 1957 Rolex Submariner. A bezel insert is the featherweight aluminum disk with numbers on it that surrounds the dial of a diver’s watch.
On Submariners made in 1957, the bezel insert was made with an unusual red triangle at 12 o’clock and slightly different typography on the numerals. Because it is rare, that insert is so sought after by collectors that it can fetch more than $30,000 these days, said Eric Wind, a dealer of fine vintage watches in Florida, up from maybe $10,000 just a few years ago.
The rebound may seem intoxicating. But people who think of their watch collection as an alternative to an ETrade account may be in for a rude surprise when they discover that watches often come with sizable dealer fees, not to mention substantial outlays for insurance, secure storage and other hidden costs, Khoo said.
In other words, newcomers to the watch world may want to heed the warning attached to brokerage advertisements on television: Past performance is no guarantee of future results. NYT NEWS SERVICE
Guitarist John Mayer estimates the value of his watch collection in the tens of millions
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