A quality wristwatch can be an expensive thing. But it’s also something that will retain its value over time – and even appreciate. You might want to one day pass yours down to your children and grandchildren. Whatever your goals and intentions, it’s important to get the watch valued – and, in time, valued again. But why? Let’s take a look.
What Increases the Value of your Wristwatch?
Why get your watch valued in the first place?
A wristwatch can cost thousands, or even tens of thousands – even at the low end. Since this is a small item that you’ll be carrying around with you, there’s always the risk that it will be misplaced, dropped, or stolen.
This is where specialist insurance comes in. This will step in when the watch is lost or damaged, and compensate you. This will allow you to get the item repaired or seek out a replacement.
But how does the insurer determine how much money to hand over? In the absence of a formal valuation, they will tend to rely on a claims management specialist, who will assess the value of the item after the fact. This valuation is almost always less than the valuation that might have been given beforehand. Thus, if you want to protect your investment, it’s worth establishing firmly how much it’s worth.
Of course, it isn’t just insurance that makes valuation worthwhile. If you want to pawn your watch, or sell it, then knowing how much it’s worth will allow you to judge the merits of a particular offer.
Why do some watches appreciate and others don’t
Whether your investment will appreciate over time will depend on several factors. All of them are rooted in simple market economics.
If the supply of the item is limited, then the price will tend to rise. Rarer watches are therefore likelier to appreciate over time, since fewer of them will come to market. Certain brands also tend to communicate to buyers a level of reliability and class. Rolexes, Patek Philippes and other big names will be likelier to appreciate.
There are also trends to be aware of. More particular styles of watch will tend to come in and out of fashion, which will result in their value fluctuating over time. More classic designs, and those which stick in the popular imagination, will be more sought-after, and therefore more valuable.
Read More: Luxury Smartwatches
Why is it important to get it revalued
So, why bother to get a watch valued again and again? The answer stems from appreciation. If you think that the value of your watch is rising over time, then getting it revalued will help you to secure a higher payout from your insurer in the event of a loss. Even if you think that the value is going to remain consistent over time, fluctuations in the exchange rate might result in your item costing more – or less – than it once did.
