Aug 19, 2026
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Add us on GoogleIt starts with a simple look down at your wrist, or a quick glance at the market ticker on your phone. Maybe you hit a major career milestone, received a bonus or simply fell in love with the timeless aesthetic of a classic steel timepiece. Or perhaps you already have a watch sitting in a safe, watching secondary prices shift and wondering if now is the moment to cash in.
You open a browser, look at secondary market trends and start rationalizing your next move. After all, you have heard the stories of luxury timepieces doubling in value. You ask yourself the ultimate question: should I buy that Rolex, or is it time to let it go?
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Watch collecting has evolved from a niche passion into a full-fledged alternative asset class. Beyond Rolex, major luxury brands like Patek Philippe, Audemars Piguet, Omega and Cartier attract millions of dollars from collectors looking for value retention. Before you pull the trigger on a multi-thousand-dollar purchase — or put your favourite piece on the chopping block — it helps to understand how the market moves and how to safeguard your money.
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The allure of mechanical luxury
Rolex produces around one million watches annually, yet demand for specific models continuously outstrips supply at retail authorized dealers. Patek Philippe and Audemars Piguet operate on even tighter production numbers, making models like the Nautilus or Royal Oak notoriously difficult to buy at retail. This scarcity creates a thriving secondary market where iconic references sell for significantly higher than their original retail tags.
For many enthusiasts, the appeal lies in the unique combination of personal enjoyment and value retention. Unlike a new luxury car that depreciates the moment you drive it off the lot, many steel sports models retain a substantial portion of their value over time.
However, viewing a watch purely as a financial instrument requires a hard look at market reality.
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Understanding watch market volatility
The watch market, like any speculative asset class, experiences cycles of rapid growth and severe corrections. During 2021 and early 2022, luxury watch prices on the secondary market surged to unprecedented highs, driven by low interest rates, high crypto returns and supply chain constraints.
That boom was followed by a prolonged market adjustment. According to data tracking secondary market prices across major luxury brands, overall prices peaked in early 2022 and steadily declined over the following years before stabilizing.
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Financial news outlets at the time reported that prices for Rolex, Patek Philippe and Audemars Piguet watches fell close to two-year lows as demand cooled and supply increased.
This market dynamic highlighted a crucial lesson for buyers and sellers alike: watches are illiquid assets and secondary prices fluctuate based on broader economic conditions.
Market value across top watch brands
Different brands carry completely different value profiles on the secondary market:
- Rolex: The benchmark for accessible liquidity. Steel sports models — like the Submariner, GMT-Master II and Daytona — tend to retain value consistently over long periods.
- Patek Philippe: Known as the pinnacle of blue-chip watch investing. Ultra-exclusive models like the steel Nautilus 5711 command steep premiums above original retail prices because supply is so limited.
- Audemars Piguet: Heavily reliant on the iconic Royal Oak series. While top references can appreciate dramatically, price swings can be sharper compared to Rolex.
- Omega and Cartier: These brands offer incredible heritage and craftsmanship. While select limited editions appreciate, many standard production models depreciate slightly on the secondary market, making them fantastic pre-owned buys but less reliable purely for capital gains.
Retail access versus secondary market premiums
If you walk into an authorized dealer today hoping to purchase a Stainless Steel Submariner or Daytona at retail price, you will likely encounter long waitlists or purchase history requirements.
This access barrier forces many first-time buyers into the pre-owned market, where they must pay a premium above the original MSRP. Buying at the top of the secondary market means you are starting your investment in the red. For the watch to become a profitable financial move, secondary prices must appreciate enough to cover both your initial premium and any eventual transaction fees from auction houses or online dealers.
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On the flip side, if you are asking “should I sell my Rolex?,” those same transaction fees and dealer margins mean you likely will not pocket the full market value listed online. Selling during a market cooling period might mean accepting less than you would have fetched during peak years.
What owners must do to protect their investment
Unlike stocks or index funds, luxury timepieces are physical items that require active protection to preserve their financial value:
- Keep full box and papers: A watch sold as a “full set” — meaning it includes the original inner and outer box, warranty card, manual and hangtags can command a 10% to 20% price premium over the exact same watch sold “watch only.”
- Preserve condition over polishing: Scratches happen, but over-polishing a watch case rounds off sharp factory edges and removes metal, which significantly reduces collector appeal and market value.
- Document service history: Keep receipts from authorized brand service centres or certified watchmakers. Documenting routine maintenance proves the internal mechanical movement is running properly.
- Insure for realistic replacement value: Add your timepiece to an insurance rider or dedicated personal valuable items policy to cover theft, loss or catastrophic damage.
- Secure storage: A proper home safe rated for fire and burglary — or a bank deposit box — is essential if you hold high-value references.
How to approach the decision
Whether you are evaluating a new purchase or deciding if it is time to cash out, frame the decision around your personal finances rather than expected financial returns.
First, ensure your core financial foundation is secure. High-interest debt should be paid off, your emergency fund should be fully funded and your traditional retirement accounts should be on track. A luxury watch should always be bought, or kept, with discretionary capital rather than funds earmarked for core life goals.
Second, buy or hold for the appreciation on your wrist, not in your bank account. The safest way to approach luxury timepieces is to prioritize pieces you genuinely want to wear every day. If the market dips, you still own a beautifully engineered piece of horology that brings you joy. If it appreciates, that financial gain is simply a welcome bonus.
When you weigh the emotional satisfaction against the realistic market trajectory, the answer becomes clear. Buy or keep the watch because you love the craftsmanship, history and design, but leave the heavy lifting of your financial future to proven, diversified investments.
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Leslie Kennedy served as an editor at Thomson Reuters and for Star Media Group, followed by a number of years as a writer and editor and content manager in marketing communications, before returning to her editorial roots. She is a graduate of Humber College’s post-graduate journalism program and has been a professional writer and editor ever since.
