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Strolling past a jeweller near Place Vendôme, it is easy to get lost in the beauty of luxury watches displayed in the window.
Yet, beyond the craftsmanship and the prestige, a more practical question often stops us in our tracks.
For those of us working hard to build a solid financial foundation, are these pieces actually a sensible place to park our savings, or are we simply justifying a very expensive treat?
Many have a deep cultural appreciation for savoir-faire and tangible assets, such as things we can touch, hold, and pass down to the next generation.
But does that sentiment translate into financial gain? Let’s look at the real numbers to see if a timepiece can truly offer financial peace of mind in an uncertain economy.
The Reality of “Investment Grade” Timepieces
First, let us be brutally honest. The vast majority of watches are not investments; they are depreciating assets.
Like driving a new car off the forecourt, most watches lose 20% to 30% of their value the moment you put them on your wrist.
However, there is a specific tier of the market known as investment grade watches. These are timepieces that, due to scarcity, brand heritage, and demand, tend to hold their value or even appreciate over time.
Investment grade watches are specific models from high-end manufacturers—typically Rolex, Patek Philippe, and Audemars Piguet—that possess high liquidity and historical data suggesting they will retain or increase in value on the secondary market.
If you are looking to diversify your portfolio beyond the Livret A or the stock market, you cannot just buy what looks pretty. You need to buy what the market craves.
Why Consider Watches as an Asset Class?
In recent years, we have seen the emergence of asset class watches. This term refers to treating horology much like you would treat gold, fine wine, or real estate.
1. Inflation Hedge
France has not been immune to inflation. When the purchasing power of cash sits still, tangible assets often rise.
A vintage Rolex Submariner does not care about interest rate hikes; it cares about supply and demand. For decades, these mechanical marvels have outpaced inflation, acting as a store of wealth that you can actually enjoy wearing.
2. The “Portable Patrimony”
There is something distinctly French about wanting to build a patrimoine. Unlike a flat in Lyon or a house in Provence, a watch is portable wealth. It is a high-value asset that fits under a shirt cuff. In an increasingly digital world, having physical value is a comfort to many.
3. Tax Advantages (The French Context)
While we are not tax advisors, it is worth noting that in France, the tax treatment of “chattels“ (movable personal property) can be favourable compared to other capital gains, specifically regarding exemptions for sales under certain thresholds or allowances for duration of ownership.
Always consult a notaire or tax specialist, but generally, small-scale collectors often find the tax environment manageable compared to property flipping.
The “Big Three”: A Market Snapshot
If you are serious about luxury watches as an investment, you are mostly looking at a very narrow field.
While many brands make exquisite timepieces, only a handful of them command the secondary market demand required to be considered a true asset. We often refer to these as the “Blue Chip” stocks of the horological world:
| Brand | Key Model | Liquidity | Investment Logic |
|---|---|---|---|
| Rolex | Submariner (Steel) | Very High | “Global Currency.” Instantly saleable worldwide, often above retail price. |
| Patek Philippe | Nautilus / Aquanaut | High | “Capital Growth.” High entry cost, but historically massive long-term appreciation. |
| Audemars Piguet | Royal Oak | Medium | “Icon Status.” Volatile but holds strong value for specific vintage references. |
| Omega | Speedmaster Pro | Very High | “Safe Harbour.” Stable value retention and easy to sell, though lower profit potential. |
Recently, independent watchmakers (like F.P. Journe) have surged in value. However, this is a volatile space. If you’re a young investor seeking stability, sticking to the brands listed above is safer. Think of Rolex as the CAC 40 of the watch world—reliable, recognisable, and robust.
The “Neo-Vintage” Opportunity: A Smart Entry Point
If the price of a brand-new Patek Philippe makes your eyes water, or if you simply cannot stomach the idea of begging an authorised dealer to take your money, there is a third way. It is a strategy increasingly favoured by savvy French collectors: the Neo-Vintage market.
Think of this like the “Youngtimer” phenomenon in classic cars. Just as a Peugeot 205 GTI from the late 80s has skyrocketed in value while remaining drivable, watches from the period between 1990 and 2010 offer a unique investment “sweet spot”.
Why is this era special?
These timepieces sit perfectly between the fragile antiques of the past and the mass-produced, ceramic-shiny models of today.
They offer the best of both worlds. You get modern reliability—such as scratch-resistant sapphire crystals and robust movements that can be serviced easily—combined with the charm of older aesthetics, like slimmer case profiles and aluminium bezels that fade beautifully over time.
The Investment Thesis
From a financial perspective, Neo-Vintage is compelling because supply is finite. Rolex is churning out a million new watches a year, but they are not making any more “five-digit” references.
As modern investment grade watches become larger and flashier, purists are flocking back to these more elegant proportions, driving prices up.
For a young investor, this sector often offers a lower entry price with a higher potential for percentage growth than buying a brand-new model at market premium.
It is the intelligent way to buy into the luxury watches market without paying the hype tax.
The Risks No One Tells You About
It is not all champagne and capital gains. Before you withdraw your savings, you need to understand the downsides.
The Liquidity Trap
Yes, a watch is valuable, but can you sell it today for a fair price? Unlike selling shares on an app, selling a watch takes effort.
Dealers will want a margin (often 20%), and private sales carry risks of scams. You might own a watch worth €20,000 on paper, but realising that cash quickly can be difficult.
The Cost of Ownership
Asset class watches are machines. They have gears, springs, and lubricants. Every 5 to 7 years, they need a service (révision).
- Service costs: Expect to pay between €500 and €1,500 depending on the complication.
- Insurance: You cannot just leave a €15,000 watch in a drawer. You need specific insurance, which eats into your annual “yield”.
The Bubble Factor
During the pandemic, watch prices went vertical. Since 2022, they have cooled significantly. If you bought at the peak, you are likely in the red. The market is cyclical. Never invest money you might need for a mortgage deposit next year.
How to Start Your Collection Sensibly
If you are ready to dip a toe in, do not rush. Treat this like buying an apartment. You wouldn’t buy a flat without visiting the neighbourhood; don’t buy a watch without researching the reference number.
- Buy the Seller, Not the Watch: This is the golden rule. Whether you are buying from a grey market dealer in Paris or a platform like Chrono24, reputation is everything. A fake watch is an investment of zero.
- Condition is King: For vintage pieces, an unpolished case and original dial are worth significantly more than a shiny, restored watch. In the world of luxury watches, scratches tell a story; over-polishing erases value.
- Full Set Matters: Box and papers. Without them, you are instantly losing 10% to 20% of the resale value. It proves provenance.
- Don’t Stretch Yourself: Only invest what you can afford to lose—or at least, afford to have tied up for a decade.
Love the idea of tangible assets, but find the watch market a bit too complex? There is a simpler, time-tested alternative that belongs in every smart portfolio—and it is much easier to buy than a Rolex.
The True Value of Time on Your Wrist
Building a portfolio of luxury watches is an exciting journey that goes beyond simple economics. It merges the thrill of the hunt with the satisfaction of owning a piece of mechanical history.
When you approach this market with patience and knowledge, you transform a simple purchase into a potential pillar of your personal wealth.
Imagine looking down at your wrist in ten years. You see a beautiful object that has accompanied you through life’s milestones, and knowing it has retained its value brings a profound sense of security. That is the ultimate goal of financial planning: to enjoy your life today while securing your tomorrow.
Therefore, we say: True financial freedom comes from knowing your assets are working for you, even while they sit elegantly on your arm.
Frequently Asked Questions
What is the best luxury watch to buy for investment in 2026?
Are smartwatches considered asset class watches?
Do I need to pay tax on selling luxury watches?
Is it better to buy new or vintage watches for investment?
