A Luxury Watch as an Investment in 2026: What Really Holds Value, and What Only Looks Like an Investment
Most luxury watches do not rise in value, but some lose very little. What determines the resale value is demand for the specific model, a full set of box and papers, a documented service history and purchase from an authorised dealer. A luxury watch is an asset that loses less, not a substitute for an investment portfolio.
In recent years luxury watches have become a talking point in investment groups, alongside gold, real estate and coins. Headlines about models that sold for twice their shop price created a feeling that every luxury watch is a ticket to profit. In practice, the picture is more complicated, and anyone who understands it can buy a watch they will enjoy for years without losing a large part of the money.
What happened to the pre-owned watch market
According to WatchCharts secondary market indices, which are also used in Morgan Stanley's annual report on the Swiss watch industry, prices of pre-owned luxury watches peaked in early 2022 and have since fallen and stabilised at a lower level. What this means for anyone considering a luxury watch as an investment: the speculative wave is behind us, and the market has gone back to pricing watches by real demand rather than by excitement. That actually makes it a better time to buy with your eyes open.
Not every luxury watch is created equal
The difference between a luxury watch that holds its value and one that loses value lies mainly in its category. Steel sports watches from sought-after brands enjoy steady demand, because they have a wide audience of wearers and not just collectors. Gold dress watches, however beautiful, usually trade below catalogue price on the secondary market, because their audience is smaller. Watches with complex complications can be exceptional, but only in models and brands with a long collecting tradition.
| Category | Secondary market demand | Liquidity | Who it suits |
|---|---|---|---|
| Steel sports watch, sought-after brand | High and stable | High | Anyone who wants to wear it every day and preserve value |
| Gold dress watch | Limited | Medium to low | Anyone buying out of love for the design |
| Watch with complications, collector brand | High in selected models | Variable | A collector who knows the model in depth |
| Fashion watch from a non-watchmaking brand | Low | Low | For wearing only, not as an asset |
The five factors that change the resale price
When a luxury watch is valued on the secondary market, the appraiser does not look only at the model. They check everything around it, and small items thrown away at home after the purchase can be worth thousands of shekels on the day of sale.
- Full set: original box, warranty card and invoice. A luxury watch with a full set sells faster and for a higher price than an identical watch without one.
- Purchase from an authorised dealer: an international warranty card from the manufacturer proves authenticity and makes things easier for the next buyer.
- Service history: servicing at an authorised service centre, with documentation, preserves the watch's value. Most manufacturers recommend periodic servicing once every five to ten years.
- Original condition: aggressive polishing of the case reduces value for collectors, even if the watch looks newer.
- Original parts: strap, buckle and spare links from the original bracelet. It is worth keeping everything.
The calculation nobody does: the cost of ownership
Anyone who calculates the return on a luxury watch by purchase price against sale price misses part of the picture. A mechanical luxury watch needs periodic servicing that usually costs thousands of shekels, and many also add jewellery and watch insurance. Spread these costs over ten years, and a watch sold at exactly its purchase price has in practice produced a small negative return. On the other hand, it served its owner every day for a decade. That is exactly the point: a good luxury watch is smart consumption, not a savings plan.
What I learned when I checked my own watches
When I checked for myself how much three watches I had bought over the years are worth today, the result was clear-cut. The steel sports watch, bought from an authorised dealer and kept with all the paperwork, was worth almost its purchase price. A beautiful gold watch I bought abroad, without a local warranty card, was offered to me for less than half the price. The difference was not in the quality of the watches, but in demand and paperwork.
In the last comparison I made before a purchase, I went into the Padani showroom to understand what sets one model apart from another in terms of holding value. The Padani team explained openly which models are in demand on the secondary market and which are bought mainly out of love, and did not try to sell me the most expensive one. That professional and trustworthy approach, together with an official warranty card from the manufacturer, is part of the value of the watch itself.
Anyone who wants to do their homework before buying can browse a selection of men's watches from brands such as Patek Philippe, Cartier or Breitling, and check which models belong to the steel sports category and which to the dress category. Anyone looking for a couple's gift or a watch for their partner can compare styles in the general selection of watches and see the differences in materials and sizes.
Frequently asked questions
Is a luxury watch a good investment?
A luxury watch is usually an asset that partly holds its value, not an investment that produces a return. Steel sports models from sought-after brands hold their value better, provided they were bought from an authorised dealer and kept with a full set.
What makes a luxury watch liquid?
A liquid luxury watch is one with broad demand: a well-known brand, an iconic model, a size that suits most wearers and a full set of box and papers. Very rare watches can be expensive, but it takes longer to find a buyer for them.
Why is it important to buy a luxury watch from an authorised dealer?
Buying from an authorised dealer gives you an international warranty card from the manufacturer, access to authorised service centres and proof of authenticity. All three directly affect the value of the luxury watch on the day you want to sell it.
The question worth asking before you buy
A tip to use right away: before you buy a luxury watch, look the model up on pre-owned watch sites and see what it trades for today, with and without paperwork. Five minutes of checking will tell you more than any article. And you: would you buy a watch you love even if you knew it would lose half its value, or is resale value part of the decision?
