By Michael Manashirov, COO of Qollateral
Updated February 12, 2026 | 8-Minute Read
Investing in watches has become increasingly popular among collectors and investors seeking alternatives to traditional stocks and bonds. At Qollateral, we work with clients who view their luxury timepieces as financial assets, and we understand the question that drives many purchasing decisions: Will this watch appreciate or depreciate?
The answer depends on several factors. The right watch, purchased wisely, can appreciate significantly over time. The wrong one can tie up capital while losing value from the moment you leave the dealer.
We’ve seen both scenarios play out. Let’s break down what separates investment-grade timepieces from expensive liabilities.
Key Takeaways: Investing in Watches
- The right watches can be assets, the wrong ones are liabilities – Success depends on brand reputation (Rolex, Patek Philippe, Audemars Piguet), scarcity, and condition. Top investment watches appreciate 10-15% annually, but mass-produced or fashion brand watches typically lose value immediately.
- Hidden costs reduce investment returns – Insurance ($500-$5,000/year), servicing ($800-$5,000 every 3-5 years), and storage ($200-$800/year) add up. A $50,000 watch can cost $15,000-$25,000 in carry costs over 10 years, eating into appreciation.
- Original condition is everything – Complete documentation (box, papers, service records) can add 20-40% to resale value. Replaced parts, refinished cases, or aftermarket modifications can cut value by 50% or more.
- Watches are illiquid compared to stocks – Selling a high-value watch takes time and the right buyer. There’s no dividend or interest while you hold them. Best results come from 5-10 year holding periods, not short-term flipping.
- Collateral loans offer liquidity without selling – Qollateral lets you borrow up to 35% of your watch’s value (loans from $2,000-$10 million) while maintaining ownership. This preserves future appreciation potential while accessing capital for other opportunities.
Understanding Watch Investment Fundamentals
Luxury watches combine tangible value with emotional appeal. Unlike stocks, you can wear your investment, and you can enjoy it daily.
The materials matter. Gold, platinum, and precious stones have intrinsic value. But with watches, craftsmanship and brand heritage often contribute more to value than raw materials alone.
Three key factors drive watch values:
Brand reputation. Names like Rolex, Patek Philippe, and Audemars Piguet command premiums because they’ve earned trust over decades or centuries.
Scarcity. Limited production creates demand. When fewer than 1,000 pieces exist, collectors compete for ownership.
Condition and provenance. Original papers, boxes, and service records can add 20-30% to resale value. A well-documented history matters.
We see clients who treat their watches as both personal treasures and financial tools. That dual purpose defines smart collecting.
Top Investment Watches That Hold or Appreciate in Value
Some watches consistently perform well as investments. We’ve appraised thousands of timepieces, and certain models appear again and again in strong financial condition.
Rolex
The Rolex Daytona remains the gold standard for investment watches. Vintage models with exotic dials have seen 200-300% appreciation over the past decade. The Submariner and GMT-Master II also hold value exceptionally well.
Sports models outperform dress watches in the current market. The stainless steel versions often appreciate more than precious metal variants, which surprises many collectors.
Patek Philippe
Patek Philippe represents the pinnacle of watchmaking. The Nautilus and Aquanaut sport models trade above retail consistently. Complicated pieces like perpetual calendars attract serious collectors with deep pockets.
These are the top investment watches that collectors view as blue-chip holdings. Production is intentionally limited. Demand exceeds supply year after year.
Audemars Piguet
The Audemars Piguet Royal Oak changed luxury sports watches forever. Gérald Genta’s 1972 design remains relevant today. Annual production stays low, maintaining exclusivity and value.
Certain references appreciate 10-15% annually. We’ve provided loans against Royal Oak pieces that returned to clients worth significantly more than their original appraisal.
Richard Mille
Richard Mille occupies the ultra-luxury segment. Prices start around $80,000 and climb into seven figures. Celebrity endorsements and extreme scarcity drive demand.
These watches appeal to a specific collector profile. The investment case depends heavily on maintaining cultural relevance and celebrity association.
Which Watches Appreciate in Value?
Not all luxury watches make sound investments. Understanding which watches appreciate in value requires looking beyond brand names.
Discontinued models often see the strongest appreciation. When production stops, existing pieces become finite. Collectors scramble to acquire what they can’t buy new.
Limited editions can work, but be selective. Many brands produce too many “limited” pieces. True scarcity means production under 500 pieces, ideally under 100.
Historical significance adds value. Watches worn by notable figures or used in significant events command premiums. Provenance documentation is essential.
Original condition matters more than most realize. Replaced dials, refinished cases, or aftermarket parts can cut value by 50% or more.
We’ve appraised watches where owners assumed value appreciation, only to discover that modifications killed resale potential. Keep your investment watches original.
Are Watches a Good Investment?
So, are watches a good investment? The honest answer: sometimes.
For carefully selected models from prestigious manufacturers, yes. A Rolex Daytona purchased at retail in 2015 could be worth double or triple today. That’s exceptional performance by any standard.
But watches differ from traditional investments in important ways. They generate no dividends or interest. They require insurance, storage, and periodic servicing. These costs reduce net returns.
The market can be illiquid. Selling a $100,000 watch takes longer than selling $100,000 in stocks. Finding the right buyer at the right price requires patience.
Here’s where we see watches shine as investments: They provide enjoyment while you hold them. You can’t wear shares of Apple stock to a business meeting. You can wear a Patek Philippe Nautilus.
The best watch investments happen when you love the piece, and it has strong fundamentals. Buy what you’d be happy owning even if it never appreciates.
The Hidden Cost of Holding: When Watches Become Liabilities
Even appreciating watches carry costs that many collectors underestimate. Let’s talk about what we call “carry costs.”
Insurance. A $50,000 watch might cost $500-$800 annually to insure. A $200,000 collection could run $3,000-$5,000 per year.
Service and maintenance. Mechanical watches need servicing every 3-5 years. Costs range from $800 for a basic Rolex service to $5,000+ for complicated Patek Philippe pieces.
Storage. If you’re not wearing it, you need secure storage. Bank safe deposit boxes cost $200-$800 annually, depending on size and location.
Opportunity cost. Capital tied up in watches isn’t earning returns elsewhere. If you have $100,000 in watches but that money could earn 7% in the market, you’re foregoing $7,000 annually.
These costs add up. A $50,000 watch might cost $1,500-$2,500 annually to hold. Over ten years, that’s $15,000-$25,000 in carry costs before any appreciation.
This is where watches can become liabilities. If appreciation doesn’t exceed carry costs plus inflation, you’re losing purchasing power.
Leveraging Your Watch Collection Without Selling
We created Qollateral to solve a problem we saw repeatedly: Collectors needed capital but didn’t want to sell appreciating assets.
Traditional options were limited. Sell the watch and lose future appreciation. Keep the watch and tie up capital. Neither option was ideal.
Our approach offers a third path. We provide luxury watch loans that let you access liquidity while maintaining ownership.
Here’s how it works:
You bring us your watch for appraisal. We assess current market value based on recent sales, condition, and market demand. Within 30 minutes, you receive a loan offer.
We offer loans from $2,000 to $10 million. You can borrow up to 35% of the watch’s liquid wholesale value. For a watch worth $100,000, you might access $35,000 in same-day funding.
The loan terms are straightforward. Interest is 2.9% per month (34.8% APR). The maximum repayment period is 120 days. No credit check required. No personal guarantee. No prepayment penalties.
Your watch is stored securely in our vault in the International Gem Tower, fully insured by Lloyd’s of London. When you’re ready to repay the loan, you get your watch back.
This structure preserves ownership. If your Rolex Daytona continues appreciating, you benefit from that gain. Meanwhile, you’ve accessed capital for other opportunities or expenses.
We see clients use these loans strategically. Some need short-term liquidity for business opportunities. Others want to invest in additional watches at favorable prices. Some simply prefer keeping assets rather than selling them during market peaks.
The loans are non-recourse. Your watch serves as collateral. Your personal credit isn’t affected. This makes our approach different from personal loans or credit lines.
Making Smart Decisions About Investing in Luxury Watches
Success in investing in luxury watches requires both passion and discipline. Here’s what we’ve learned from working with serious collectors.
Buy what you love first. If the watch doesn’t appreciate, you should still enjoy owning it. Investment potential is a bonus, not the primary reason to buy.
Do your research. Understand the specific reference, production numbers, and historical performance. Not all Submariners perform equally. Details matter.
Condition is everything. Original parts, boxes, papers, and service records significantly impact value. A complete set can add 25-40% to resale prices.
Consider timing carefully. Buying at peak hype often leads to losses. The best acquisitions happen when markets are quiet and sellers are motivated.
Think long-term. Watches aren’t day-trading instruments. The best returns come from holding 5-10 years or longer. Short-term flipping rarely works consistently.
Have a strategy for liquidity. Know how you’ll access value when needed. Selling takes time. Using watches as collateral for loans provides faster access to capital.
Diversify thoughtfully. Don’t put all your capital in one brand or model. Mix contemporary pieces with vintage, sports models with dress watches.
The collectors who perform best treat each purchase as both a personal acquisition and a financial decision. They balance emotion with analysis.
The Verdict: Asset or Liability?
So, are watches assets or liabilities? The answer depends entirely on which watches you choose and how you manage them.
The right watches, purchased wisely, absolutely qualify as appreciating assets. We’ve seen countless examples of 50%, 100%, or even 200% appreciation over 5-10 years.
Poor choices create liabilities. Fashion brand watches, over-hyped limited editions, or mass-produced models typically lose value immediately and continue depreciating.
The key is understanding the difference before you buy.
At Qollateral, we help collectors transform their watches into financial tools. Whether you’re looking to access short-term liquidity, make a strategic acquisition, or simply want to know your collection’s value, we provide the expertise and services you need.
The luxury watch market offers genuine investment opportunities for informed collectors. Success requires patience, research, and sometimes creative thinking about how to leverage your assets.
If you’re building a watch collection with investment potential, remember this: The best watch investments are ones you’d be proud to own regardless of their financial performance. When passion aligns with sound fundamentals, you’ve found the sweet spot.
Ready to access the value in your watch collection without selling? Contact us for a private, no-obligation appraisal. We’re here to help you make the most of your luxury assets.
