A: Generally speaking, yes they do. Watches are, literally and figuratively speaking, “timeless” in design and function. There is no new technology to stack on older models and depreciate it’s value. At its core, watches do what they have done since humans evolved from using sun-dials – to keep time. However, they have taken on an element of collectorship, pride, accent, fashion, and personality statement over the years. While these are functions of human constructs apportioning value over and above intrinsic value, the fact remains that watches hold value no different from any other asset such as gold or crypto, but it tends to mimic the gold asset pattern more than the crypto asset. Meaning, in good times, luxury watches inflate in value, sometime entering the hype market, but during recession times, they hold a floor value that it just wont drop below. On a future post I will explain more on what causes certain watches to have a floor value. But case in point, take a look at the chart below on the classic Omega Speedmaster Reduced. It grew 80% in value over 11 years or approx. 7.27% ROI annually excluding inflation. That is better than most stocks and ETFs in Canadian marketplace. To prove this chart, SparkwithLark made an acquisition in the Speedy Reduced and it sold within 30 days to a happy client in Montreal at the intended target price shown in this chart.
#technology #design #fashion #luxury #luxurywatches #omega #speedmaster
