Why luxury watches can be worth the investment

In June 2007, the iPhone was released. Complete with a built-in time display, there was a pause as those in the watch industry were counting down their last days. But, to the contrary, statement watches grew in popularity, as did the thirst for vintage watches.

Swiss brands such as Rolex, Patek Philippe, Audemars Piguet, Omega and Breitling became even more desirable (read “expensive”). As with many vintage items heading north in terms of price, it certainly helps to have the original packaging and provenance.

A Cartier dress watch circa 1999 valued at $14,900.

A number of these highly collectable new and vintage watches can be found at Zaeger in Sydney and Melbourne – but before you make an appointment, be prepared to go on a waiting list for some watches rather than expect them to be wrapped and good to go.

“There’s a long waiting list for some of the vintage watches, particularly those that were limited edition,” says Zaeger’s owner, Shmuel Ulman, whose family established the business 35 years ago, initially wholesaling before entering the retail world 11 years ago.

Ulman singles out the Rolex Submariner, produced in the 1950s, and in particular the model bearing the red scrip on the dial, as retailing for more than $100,000 – assuming it comes with its original box and papers and hasn’t been altered.

“If vintage watches have been serviced and elements such as dials or the bracelet altered, the price is reduced,” says Ulman.

‘These watches, even new, can double their price in a matter of years.’

Shmuel Ulman, Zaeger

One watch that won’t be seen in either of the two Zaeger showrooms is the Paul Newman Daytona, released in 1963 and named after the actor. Newman’s own Rolex Oyster Cosmograph Daytona sold at Phillips auction house in New York in 2017 for $US17,752,500 ($26,178,837).

Those set on spending considerably less for a new Daytona from Zaeger may feel comfortable parting with $24,250 (includes GST). But according to Ulman, there’s a waiting list to obtain even one of these watches.

“These watches, even new, can double their price in a matter of years,” says Ulman, suggesting a 10 per cent price rise every year is a reasonable expectation.

A rare Patek Philippe platinum wrist watch circa 1930. Credit: Leonard Joel

While the 1950s and 1960s vintage watches from the Swiss companies are for those with extremely deep pockets, those with more limited budgets should, according to Ulman, look at watches from the 1970s through to the 1990s.

“You need to be patient and wait 20 years for the returns on some of these later watches,” he says.

One area of the vintage watch market that’s received renewed interest is dress watches by companies such as Cartier.

“It’s quite an unusual phenomenon,” says Luke Fulton, co-owner of the Vintage Watch Co in Brisbane and Sydney.

“The vintage sports watch market is still strong but, increasingly, there’s renewed interest from collectors in China looking for Cartier watches from the early 1990s to the end of that decade. And given these watches were from a fashion house, fewer were made,” says Fulton.

He also sees interest in dress watches from the mid to late 20th century. One Cartier watch, introduced in 1999, is valued by Fulton at $14,900.

Patricia Kontos, senior specialist of time pieces at Leonard Joel Auctions, also sees a healthy market for key vintage watches such as Rolex, Patek Philippe and Audemars Piguet. She divides the watch market into pocket watches (late 19th century to the early 20th century), wristwatches produced in the 1920s and 1930s, and the vintage watches from the 1940s through to the 1960s as coming under her umbrella.

Kontos singles out certain results obtained at Leonard Joel as worthy of attention, including a Rolex Cosmograph Daytona circa 1967 that was sold for $57,500 (including buyer’s premium) in October 2023.

Again, rather than chasing the “horse that’s already bolted”, Kontos suggests looking at the Tudor ranges from the 1970s as well as those produced by Omega at the same time, the latter costing between $4000 and $15,000.

“If these watches come with their original box and with their documents, you can add an additional 20 per cent,” says Kontos.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

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