Top 10 Watches That Are the Smartest Investment Today

The Decline of the Secondary Watch Market: Trends and Investment Opportunities

The secondary watch market has experienced a significant downturn over the past few years, with prices continuing to decline into 2025. After reaching a peak in May 2022, the market has faced 11 consecutive quarters of falling prices, according to a recent report from WatchCharts and Morgan Stanley. As we enter the first quarter of 2025, the outlook remains bleak, with a 5.7% decrease in resale watch prices compared to the previous year.

Factors Contributing to the Decline

Several factors have contributed to the current state of the secondary watch market. One major influence has been the influx of inventory as investors who bought watches during the market’s peak attempt to cash out. This rush to sell has flooded the market, leading to increased supply and, consequently, lower prices. Economic uncertainties, coupled with rising interest rates, have also impacted the luxury market as a whole, making consumers more cautious about their spending.

Charles Tian, the founder and CEO of WatchCharts, notes that the perception of falling prices and reduced liquidity has prompted many sellers to list their watches, further exacerbating the decline. The report from WatchCharts and Morgan Stanley suggests that the market may not have reached a turning point yet, predicting that secondary prices will continue to fall in the foreseeable future.

The Big Three: Rolex, Patek Philippe, and Audemars Piguet

Despite the overall decline, certain brands and models continue to hold their value exceptionally well. The so-called "Big Three" — Rolex, Patek Philippe, and Audemars Piguet — dominate the market, accounting for approximately 64% of secondary watch sales. As of January 2025, a significant percentage of models from these brands still trade above their retail prices: 56% for Rolex, 63% for Audemars Piguet, and 38% for Patek Philippe.

The enduring popularity of these brands can be attributed to their strategies of maintaining limited availability at official retailers. This scarcity creates a demand-supply imbalance, leading to higher prices in the secondary market. Paul Altieri, founder and CEO of Bob’s Watches, likens this phenomenon to luxury fashion brands like Hermès, where high demand and limited supply create a significant disparity between retail and secondary market values.

High-Demand Models

Certain models within these prestigious brands have become particularly sought after. The Rolex Daytona and GMT-Master II are consistently in high demand, while social media trends can propel other styles to new heights. Classic models like the Daytona and Submariner remain timeless choices, with Rolex accounting for over 75% of sales at Bob’s Watches.

Chrono24, a prominent marketplace for luxury watches, recently identified the ten models that are currently selling at the highest premiums over their manufacturer’s suggested retail prices. Notably, the Patek Philippe Aquanaut series, known for its minimalist and sporty designs, has emerged as a standout collection, with various metals and finishes contributing to its desirability.

Investment Considerations

While the data suggests that certain models may offer smart investment opportunities, experts caution against selecting watches solely based on their potential resale value. Altieri emphasizes the importance of choosing a watch that resonates personally, rather than one that is merely perceived as a financial asset. He advises buyers to focus on quality and personal enjoyment, as quality assets tend to appreciate over time, whether they are real estate, stocks, art, or watches.

Conclusion

The secondary watch market may be facing challenges, but there are still opportunities for savvy investors. The Big Three brands, particularly certain models from Rolex, Patek Philippe, and Audemars Piguet, continue to command high prices in the secondary market. As the market navigates its current landscape, potential buyers should remain informed and consider their personal preferences alongside investment potential. Ultimately, the best approach is to invest in something that brings joy, ensuring that the purchase is not just a financial decision but also a personal one.