It has recently been reported that the watch collectors’ market is a buoyant one. We take a look at why people collect watches, what to look for when choosing watches to collect, top watch brands for collectors and insurance implications if you are building up a watch collection.
Why start a watch collection?
With rising prices, the watch market is a buoyant one. Watches hold their value making them good from an investment perspective.
Watches may be a true passion for some. For some collectors it is all about the watch. Watches which make up the collection will most likely be worn and used regularly. Investment is likely to come into the purchase decision but may not be the sole driving factor.
Other watch collectors may do so purely for the investment potential. These types of collectors may be buying at the top end of the market with their collections made up of watches worth significant sums. Watches are likely locked away, not necessarily purchased to be worn.
What factors to look at when choosing watches for your collection?
Why you are collecting watches will define the watches and the brands that you choose for your collection. Likewise, budget will obviously be a big factor in the watches that you purchase.
If you are collecting because it is your passion, whether a watch will hold its value may be less of a consideration to you than if you are collecting for investment for example.
If you are collecting for investment then you may be looking for watches which are limited editions, those which are hard to come by or timeless vintage pieces. In this instance you need to be very careful that you are buying the real thing – given the values involved there are many fakes out there which you definitely won’t want to touch
The key thing to do before you buy is to carry out your research. You don’t want to pay more than necessary for any watch you are looking to add to your collection. Equally you do not want to be the victim of a scam or fraudster. So, ensure that you research your suppliers. If you are spending a lot of money it is probably best to use a well-established seller. Equally, seeing the watch in real life is also seen as sensible, rather than buying online.
This guide to collecting watches gives some advice on what to look for when building up a watch collection from a range of experts in the industry.
What are some of the top brands for watch collectors?
As above, budget and why you are collecting watches will play a big part in the brands that you choose to purchase for your watch collection.
Well-known brand names – choosing watches from established brand names can be a good starting point. Established brands which have been around for years and continue to be popular, are so for a reason (think Rolex for example). They can therefore offer a safe option, particularly if you are looking to spend quite a lot of money.
Prestige – Many of these brands will limit the number of a certain watch that they make, creating exclusivity. Thus, helping watches maintain and increase their value.
Fashion and trends– many sources suggest staying away from watches which follow a very specific fashion or trend. These types of watches, whilst popular at a given point at time are less likely to hold or increase their value than a more classic design.
With this in mind, some of the top watch brands for collectors include:
- Vacheron Constantin
- Audemars Piguet
- Tag Heuer
- Patek Phillipe
- Baume and Mercier
Why insuring your watch collection is important?
If the right watches are purchased, a watch collection can be worth a lot of money. This means there will be implications from an insurance perspective.
As you build your watch collection, you may find that your insurance needs change. Insuring one watch on a standard home insurance policy may be possible. Insuring a larger collection of watches will likely see you outgrow the typical sums insured values that a standard policy may provide.
This could mean you need to consider a high net worth insurance policy. Given the more bespoke nature of the insurance needs it may make sense to work closely with an insurance broker. They can provide you with the necessary advice you need to ensure that your collection is properly insured
- Safety – keeping your watch collection secure in the home will be critical to your insurance. You will need the right safe for example to keep them in. This is an area a broker can help you with. They can guide you on the category of safe you need to give you appropriate cover
- Cover for out of the home – if you will be wearing your watches out of the home you will need to ensure that you have cover for out of the home. This will typically be set at the maximum value of the most expensive piece you have in your collection. It is important to ensure you have cover which is enough for your highest value piece.
- Cover for in the home – this will be a separate sum and needs to take into account the value of your entire watch collection
- Valuations – watch values canfluctuate depending on trends in the market. For example, if you own a discontinued model, then its value could be greater than you originally paid due to demand. Making sure you have up to date valuation of all of your watches will therefore be key to ensure that you have the right level of insurance in place.
If you have any questions about high net worth insurance or have a watch collection and want to discuss your insurance needs, then don’t hesitate to get in touch with us on 0208 8290 9086 or email us at firstname.lastname@example.org. We pride ourselves in providing a bespoke service for those looking to insure their valuable possessions.