Luxury watches are recognised as a valuable and stable asset to have in your investment portfolio. To maintain a luxury watch’s value, however, you need to take good care of it.
What constitutes a luxury watch
Luxury watches are extremely high-end watches that are known for expert craftsmanship and reliability.
Famous luxury watch brands include Rolex, Patek Phillipe, Hublot and Breitling, to name just a few.
These watches can be brand new or vintage but for them to be considered an asset, they have to be in impeccable condition.
Taking care of a luxury watch
These tips from watch experts will make sure your luxury watch never depreciates due to neglect.
Your luxury watch should be cleaned frequently with a soft cloth. Waterproof watches should be washed with mild soap and water every few months.
Remember to remove leather straps first.
Most modern watches can handle the cold and the heat. However, avoid exposing your luxury watch to extreme temperatures (below 0°C and over 60°C).
In particular, rapid changes in extreme temperature can damage a watch. They may cause components to expand and contract, beyond their tolerances.
Mechanical watches should be serviced every two to three years. Quartz watches should be serviced every three to four years.
Make sure the company servicing your luxury watch is experienced in servicing the brand you own.
Avoid prolonged sun exposure. The heat can affect the longevity of the battery.
Direct sunlight can also fade colours and make leather straps brittle.
Most luxury watches are water-resistant or even waterproof but make sure you know what level of exposure and depth yours can handle.
Antique watches can sometimes lose their waterproofness, so consider this too.
Leather straps should be removed before cleaning or exposure to water.
Use a soft cloth to wipe leather straps clean. Also, avoid contact with oils, skin lotions and perfumes.
Watch experts do not advise making time or date adjustments when the hour hand is between the 3 and 9 markers.
This is to avoid damage to the pinion and the gears.
Exposure to magnets can affect your watch’s timekeeping.
If the hairspring coils become magnetised, they will stick together and make the watch run too fast.
Knocks and shocks
Accidentally knocking or banging your watch against walls, furniture or doorways can cause internal damage, cracks and scratches. This could devalue your watch – so take care when you’re wearing it.
Your watch’s battery won’t last forever. Replace the battery periodically so your watch stays accurate.
It’s also important to have the battery changed regularly to avoid leakages. These can cause serious internal damage.
Exposure to solvents and perfumes
Don’t expose your watch to harsh solvents when cleaning it.
Also, avoid contact with body lotions, perfumes and cosmetics. These can cause stains and discolouration, even on metal.
Store it in the box
When you buy your watch, keep the box it came in for storage when you’re not wearing it. The box also helps you prove the watch’s authenticity and ownership as an asset.
Luxury watches as an asset
Financial advisors recommend including luxury assets in your investments, for a diversified portfolio.
Aside from luxury watches, examples include items like curated art, vintage wines, antiques, classic cars and gold.
These types of assets tend to continue gaining value, even during times of instability – when traditional investments like property can suddenly depreciate.
To an extent, luxury investments act as a fail-safe in the event of financial uncertainty or fluctuating markets.
Asset-based loans from lamna
If you own a luxury watch, you can unlock its value without having to sell it.
A luxury watch can be used as collateral for an asset-based loan. Once the loan and agreed interest are repaid, your watch is returned to you, in the same condition you left it.
You can then choose to sell it at a later date or keep it for future generations.
At lamna, we offer fast, discreet loans against the value of a wide range of assets, including luxury watches and jewellery. For more information about using an asset to secure a short-term loan, contact us on 086 111 2866 or simply complete and submit our online application form.
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