Patek Philippe

rolexdoc
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Really? No Midas in his touch?

It is quite frequent that we read on these blogs that watch collecting can not be profitable. Infact, some here will look at this Bloomberg article and be quick to point out the dangers of assuming that noone can achieve fiduciary gain by collecting and/or "investing" in watches.  To believe in that possibility is akin to going to the "dark" side.  These pundits consistently compare the idea of collecting or buying watches for profit as a charade , an exercise in futility, a task not to be ventured  lest we lose our  families ,friends and all our wordly posessions.  It would be a fools venture to travel down the road of horologic investment .  Really,  a venture that could never be compared to buying stocks, bonds , realestate or the like.   

I am really fatigued by this nonsense.  Of course , If one were not experienced, learned and disciplined in the design of investing in watches he/she would likely not succede  in the endeavor.  I would suggest the same be true in traditional investment modalities.  "Chance favors the prepared mind."  This is as applicable to traditional investment ventures as it is to more traditional investments.  In fact,  including both in your portfolio is neither foolish nor is it fiscally irresponsible.  The two can balance themselves and provide for a better long term  financial plan.  When the economy globally is poor people do tend to flock toward tangible goods for security.  Gold, Silver, coins, art, collectables and the like predictably become attractive.  This is irrefutable.  When your country's currency is down it may be difficult to sell your watch locally but it is refreshing that there are watch collectors / investors all over the world.  If you have a true investment grade watch you will be able to sell favorably in this invironment abroad.  Likewise  the opposite be true when your currency is strong.  Perhaps then you may well have opportunity to buy from abroad.

I have collected watches for 30 years and I have consistently grown my collection largely by achieving profit, trading up , bettering my watches.  I was the proud owner of the black glossy star dialed watch mentioned in the Bloomberg article.  It was not my first success nor will it be my last.  I was not fortunate to simply be in the game at the beginning and reap a profit out of luck and timing.  I have achieved this success countless times in the past thirty years. The watch market is real.  Just as is the wine market, the art market....... etc.  To asssume that nobody can consisitently profit by this commodity is akin to putting your head in the sand and hiding from the fact that it can not be done simply  because you have not  achieved that success.  It is no different than assuming now that the stock market can not consistently give positive results because you have seen the internet / tech bubble, 9/11 losses, or the world economic collpse most recently and precipitous fall of the more traditional equities.

Chance Favors the Prepared Mind.  If you understand your niche you stand a better chance of personal gain whethter it be financial , intellectual or purely a joyous endeavor.

There may indeed be a bubble......there are bubbles in every single investment arena that I have seen.  Listen the vast majority of contemporary and vintage watches fail to bring consisitent profits.  However,  I know more than a handful of people who have done well by investing in watches .....consisitently over these past 30 years.

I am passionate about every watch that I own and every watch that I consider.  I miss the great ones that I have sold or traded.  I hope that more often than not the watches that have replaced the ones gone are more dear to me now.  this has not always been the case and i try to learn from mymistakes .  I love collecting watches it is not a means to achieve my financial goals.  It is a hobby a long love that has kept me sane , stimulated and interested for 30 years.

  I would wager  that the sellers of the finest, rarest, and most original watches in the sales this season bring profit to their owners.  However, I would agree that the more pedestrian examples might dissapoint and bring lack luster results .  It is no different than the stock market  or betting on substandard bonds by not doing your due dilligence on the triple A rated fixed  income opportunities and sticking to what will always be there and be there in high demand.

Just my two cents.