By Gary Girdvainis
I think it was just after the 2008 crash that the calls started coming in.
Complete strangers were calling our offices and inquiring about watches as potential instruments for investment. From their perspective it seemed to make sense. Fine timepieces have perpetual and intrinsic value, are liquid and easy to convert to cash and small enough to secret away in a bank deposit box or home safe. Some will even appreciate over time.
To these speculators and investors, the watch was simply a widget and could be anything (think NFTs), a device in which to insert capital and to be added to the other elements of a portfolio.
This cold, calculating valuation of wristwatches has gained momentum over the last decade-plus and is fueling rampant and runaway pricing on several preferred models. Some of which have seen values soar to ten, fifteen or even twenty times the original retail price.
This explosive surge has been brought on by a kind of perfect storm. First-off it could not happen without the internet. In the pre-internet era values would still climb on preferred pieces, but the forces pushing the growth were operating at a statelier pace. Watches would see price growth at auction, or via secondary sales at retail shops. The growth was not as immediately visible and volatile as the current state of viral information pathways.
Another factor is the fear of missing out. Buyers (note I did not say collectors) want to hop on board before the train leaves the station and are fueling the fires of desire and driving costs through the roof.
Forgive me if I feel that buying a watch purely as an investment is a sterile event without any real enthusiasm for the product, or any chance that the “investment” watches will ever see the light of day. Chances are the commoditized timepieces will sit in the dark until the next transaction, never to be enjoyed, shared, or shown-off except to confirm authenticity.
I’m a watch guy and have been for a long time. I appreciate the look, feel, sounds, and even smells (that vanilla scent on a nice rubber strap) that evoke pride of ownership and real enjoyment. Whether an affordable field watch with great lume, or a repeater softly chiming the time, watches are meant to be worn just like cars are meant to be driven.
I have a friend that has had amazing financial success in life. He recently invited me to his home and knowing I’m a car enthusiast was happy to show me some of the exceptional cars he had acquired over the years. One of which was the famous 1955 Jaguar D-Type. Designed for racing at LeMans and other venues, the D Type also happens to be street legal.
So as my friend sees me gaping at his exquisite machine, he tells me to look under the wheel well. I bend over, careful not to touch the coachworks, and look underneath. What I see is a spattering of mud on the wheel well liner. Not only does he drive this seven-million-dollar car, he drives it around town and even drives it to the track on vintage race days!
This post first appeared in the Winter 2022 issue of iW Magazine.