Once upon a time, watches were just about telling time. You wore one to work, took it off at night, maybe passed it down to your kids. But somewhere along the way, wristwatches became investments. Not just “nice things to have,” but legit, portfolio-worthy assets. So, how did we get here?
The first wristwatches were more about function than fashion. In the early 1900s, they were mostly worn by women, while men preferred pocket watches. But after World War I, when soldiers needed to keep track of time hands-free, the wristwatch caught on as a practical tool. Fast forward a few decades, and watches started becoming status symbols. By the time brands like Rolex, Patek Philippe, and Audemars Piguet were gracing the wrists of movie stars and world leaders, watches had moved well into luxury territory. Still, a few people in the ’80s or ’90s were buying a watch thinking, “This will outperform the S&P 500.”
That didn’t really happen until recently.
Around 2015, the luxury watch market began to shift. A combination of social media, scarcity, and hype brought attention to specific watch models, especially steel sports watches like the Rolex Daytona or Patek Philippe Nautilus. Suddenly, it wasn’t just collectors and enthusiasts buying watches. It was resellers, flippers, and even investors. A limited-edition watch released at retail for $10,000 could be flipped the next day for $30,000 or more.
And the numbers started turning heads. A Rolex Daytona 116500LN, released in 2016 for around $12,000, was selling on the secondary market for over $40,000 at its peak. The Patek Philippe Nautilus 5711, famously hard to get even at its $30,000 retail price, soared above $100,000 after being discontinued in 2021. Some vintage watches, like a Paul Newman Daytona, have sold at auction for over $17 million. Yes—million.
Unlike stocks or real estate, watches don’t generate cash flow. They don’t pay dividends or rent. So why are they catching investor attention?
They offer a unique mix of factors that appeal to today’s collectors. First, there’s scarcity. The most sought-after models are made in limited quantities, and brands like Rolex carefully control supply. Second, there’s tangible value. A luxury watch is a physical object you can wear and enjoy, unlike a stock certificate or a crypto wallet. Third, the market is fueled by passion. People love watches. They follow brands, chase grails, and are willing to pay top dollar for the right piece. And finally, thanks to platforms like Chrono24, WatchBox, and Hodinkee, there’s global liquidity. You can sell a watch to someone halfway across the world with just a few clicks. But it’s not all glitz and gains.
Before you go mortgaging your house to buy a Royal Oak, it’s important to acknowledge the risks. The watch market, like any hot sector, can be volatile. Prices fluctuate, trends change, and there’s always a chance you overpay chasing hype. After the explosive highs of 2021, the market corrected sharply in 2022 and 2023, with some models dropping 30 to 50 % in value. There’s also the issue of counterfeits—some fakes are so good, even experts get fooled. And while online platforms make buying and selling easier, there’s no guarantee you’ll get your asking price.
So while a watch can be an investment, it probably shouldn’t be your only one. For watch lovers, buying a timepiece that holds or grows in value is a sweet bonus. But the smartest approach is to think of luxury watches like fine art, vintage cars, or rare wine: niche, tangible, and best used to diversify a broader investment strategy. Buy what you love, learn what you can, and if the market rewards you down the road? Even better.
Because at the end of the day, while stocks may rise and fall, a great watch is always… well, timeless.
– Everts Hemmelis