The short answer
- Most luxury watches sell for less than their retail price once worn; only a small group of references holds or gains value.
- Brand, specific reference, condition, original box and papers, and service history drive resale prices.
- Servicing, insurance and dealer margins eat into returns, so buy a watch you will enjoy wearing even if its price falls.
In this article
Some luxury watches hold their value, a few appreciate, and most lose money once they leave the shop. That is the honest answer. The useful question is not whether watches are good investments but which factors protect what you spend, and what costs to expect along the way.
This article is general information, not financial advice.
Why do some watches hold value while others do not?
Resale value comes down to demand that outstrips supply. When a brand makes fewer of a popular model than people want to buy, waiting lists form and pre-owned prices can exceed retail. When supply meets or exceeds demand, a watch behaves like most luxury goods and loses value the moment it is worn.
The secondary market is also cyclical. Prices for the most sought-after steel sports watches rose dramatically through 2021 and peaked in early 2022, then fell back over the following years. Anyone who bought at the top learned that watch prices can move in both directions.
What drives resale prices
The specific reference. Brand matters, but the exact model matters more. Within one brand, a popular steel sports watch and a less fashionable dress model can behave completely differently.
Condition. Original, unpolished cases with crisp edges are worth more than heavily polished ones. Scratches can be lived with; over-polishing cannot be undone.
Completeness. The original box, warranty card, manuals and receipts, often called a full set, add value and make authentication easier.
Service history. Documented servicing by the brand or a respected independent reassures buyers.
Provenance and rarity. Limited editions, discontinued references and watches with an interesting history can command premiums, but only when there is genuine collector interest behind them.
The costs people forget
A watch that appears to hold its value on paper can still lose you money in practice.
- Dealer margins. Selling to a dealer typically means accepting well below the price you see advertised, because the dealer needs a margin.
- Servicing. Mechanical watches need servicing every five to ten years, and a full service at a major brand can cost a significant sum.
- Insurance. Valuable watches should be insured, which is an annual cost.
- Selling fees. Auction houses and marketplaces charge commission.
Add these together over ten years and a watch that sells for its purchase price has still cost money to own.
How to buy with value in mind
- Buy the watch you want to wear. If its value falls, you still own something you love.
- Research individual references using auction results and pre-owned listings rather than headlines.
- Keep the full set and every service receipt.
- Avoid paying large premiums over retail during a market frenzy.
- Buy from authorised dealers or reputable pre-owned specialists with authentication guarantees.
The bottom line
The healthiest way to think about a luxury watch is as a long-term companion that may retain much of its value, not as an asset that will grow. Choose well, look after it, keep the paperwork, and the question of value will mostly take care of itself. If you are deciding on size first, start with our guide to why smaller watches are back.
Questions readers ask
Which watch brands hold their value best?
Historically, a handful of steel sports models from Rolex, Patek Philippe and Audemars Piguet have held value best, followed by selected references from brands such as Omega, Cartier and Tudor. Value depends on the specific model and its demand at the time, not on the brand name alone, so research individual references.
Are watches a good investment?
Watches are better treated as a purchase you enjoy than as a financial investment. Prices are volatile, selling costs are high and there is no income. Secondary-market prices fell sharply after their 2022 peak, which showed how quickly sentiment can change. This is general information, not financial advice.
Do box and papers really matter?
Yes. A complete set with the original box, warranty card and paperwork can add a meaningful premium on resale and makes the watch easier to authenticate. Keep everything, including service receipts, in a safe place.
