Posted By HARRIS A S on August 2, 2010
How much must I pay for a particular vintage-watch?
This is a million-dollar question and there is no easy answer to it. Ask this question to ten different people and chances are, we will get twenty different answers, and not just only one. There will never be one answer to this question.
Basically, it all depends on you and also, the rarity of that particular watch, irrespective of brand-name. The value of a watch lies in what the potential buyer (it could be you or another party) is willing to pay.
Again, talking about potential buyer, potential buyers can be compartmentalized into various categories. They are: a genuine collector or ‘crazy collector’, a collector who claimed to be one but actually not, a speculator or short term investor, an investor who believes a good watch will double in price, every seven years.
Usually, the rare pieces and those in high demand may double in price within a period shorter than seven years, provided there is no global recession crisis. Lastly, we have the dealers and this category of people were absent in the good old days.
A genuine or crazy collector will pay any price for a particular watch he likes and not worried regarding its resale value, since in his mind he will keep the watch, forever. A dealer will pay least for the same watch, since he has his overheads to maintain and buying and selling is his bread and butter. So, whose price are you going to use as an indicator of what you will pay for the same watch?
I can still remember, I approached a good friend of mine, a top authorized Rolex dealer in Orchard Road, some time in the early 80′s. He is financially well-off and I knew, whatever ‘old watch’ I could lay my hands on could easily be bought by him, so I did not have to borrow money. I insisted that he put a counter in his shop to display ‘old watches’ or open another shop to sell only ‘second-hand watches’. He got a rude shock of his life. ‘Who is going to buy those old watches, when new watches come with a one-year warranty. Furthermore, new watches are cheap, though second-hand watches are cheaper but nobody will buy one, since in the event it requires spare parts, it would not be easy to find one.’
For that time, his statement was true but not today! The shopping center where my friend is, had no shop selling ‘second-hand’ watches in the 80′s but in the early 90′s, virtually everyone with money albeit without the basic knowledge of ‘vintage-watches’ were rushing to open a joint.
I am going to touch only on the topic of a genuine collector. Years ago, when there was no such a thing termed as market-value for an old watch. People collected watches for the sake of collecting because they loved the watches they came across. They had no idea, one day those watches would increase in price. A genuine collector would pay any price for a watch that attracts him. Whether he would lose or make money, in the event he wanted to sell it subsequently, is never a criteria for consideration. He would only sell it, in case he did not have enough money to pick another watch which attracted him more. The moment, he started to think whether or not he would lose or make money, his claim of being watch-collector is dicey. We shall then move him into the next compartment of a speculator or short-term investor. Of course, there are some genuine collectors who think they would not want to lose money, in the event they decide to upgrade.
No comment, regarding speculators, investors and dealers, since I had never had the experience to become one.
Generally, no one will lose money on a good vintage-watch that is factory original in all respect, especially its dial which should never ever be reconditioned, refreshed, refinished, redone, refurbished or whatever adjective you use. It is one thing a genuine collector will avoid. Most collectors would rather go for a watch with a very aged dial, rather than one that had gone under the knife.
A genuinely mint condition watch is not easy to come by today, unless it is a Patek Philippe or Audemars Piguet, meant to be owned but not meant to be worn daily, unlike those not so mighty brand-names.
For the same model and all denominators being equal, a stainless-steel watch is cheapest, followed by a gold-capped one and then the solid gold piece. However do bear in mind, in the case of a Patek Philippe, one in stainless-steel may even be more expensive than a solid gold piece, in view of it scarcity, while a Rolex, Omega or Longines in stainless-steel is generally cheaper than ones in solid gold.
Talking about solid gold, the yellow is cheapest compare to ones in white or pink gold. Again, scarcity comes into the picture. Some years ago, watches in solid white or pink gold were not popular relative to the yellow ones. As a result of which, watch manufacturers produced a small number of watches in white or pink gold, so as to meet the demand of a limited market. However, collectors are finding those scarce ones more desirable as a collectible timepiece, today.
With regard to gold-capped ones, the same principle applies. Yellow gold-capped watches are very common, while ones that come in pink gold-capped are rare. Rarest of all is a watch with white gold-capping, since there is not much difference in terms of looks, between a white gold-capped piece and that of a stainless-steel. There is only a subtle difference and it is not easy to tell them apart.
Most collectors will pay a good price for a watch that is original in every respect and of course, one in mint condition commands an incredible price, for example the watch below which has some complications in it.
It is surprising to note, there are many young executives who are going after vintage-watches, today. It is a healthy sign that the vintage-watch market is ever-growing.
Category: Uncategorized |
No Comments »
Tags:
