Starting a watch collection? What beginners should know before buying

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Though smartphones and wearable devices like fitness bands can accurately tell time, many people still prefer using traditional watches whether for convenience, aesthetics or an appreciation of a well-constructed analog device. In fact, though the luxury market has been in a bit of a slump, watches are a big industry, with a global market exceeding $135 billion and annual growth projections exceeding 5.6%, according to the data aggregator Statista.
A watch can convey status or accessorize an outfit, but they're also popular as collectibles. For beginners, watch collecting is best treated as a hobby first: Most watches lose value, while those that do appreciate can be difficult to identify and buy at retail.
CNBC recently spoke with experts in the business to find out what a beginner might want to consider when starting a watch collection.
Start collecting for love, not for investment returns
First and foremost, building a collection because you enjoy the looks, mechanical details or history of watches can be satisfying. Collectibles are also becoming more accepted as an alternative investing asset class. But experts advise that you aren't likely to outperform more traditional investments.
Charles Tian, the founder and CEO of WatchCharts, a market-research platform that tracks used-watch prices, explained that it's possible to make money buying and selling watches, but collectors are unlikely to beat investments such as an S&P 500 Index over the long term. "I would not get into watch collecting purely from a financial perspective," Tian said.
He noted, however, that desirable watches can still appreciate over time, pointing out that the Rolex Submariner – a diving-style watch that retails new starting at roughly $10,000 – tripled in value on the secondary market from 2010 to a peak price in 2022 during the Covid-era collectibles boom.
"As a collector and watch enthusiast you'd expect me to say that watches are a great investment, but they mostly aren't," said Mike Johnson, founder of WatchPatrol, a site that aggregates data on the secondary watch market. "The majority of watches depreciate and it's hard to tell which new references will ascend into 'modern classic' territory."
In its index over the past year, quality timepieces such as the Breitling Superocean 42 and the Panerai Luminor GMT both saw material declines in value.
"These are fine watches with shrinking prices, and that's the normal case, not the exception," Johnson said.
There are some exceptions, of course. In special (and exceedingly rare) cases, a watch can appreciate dramatically. For instance, a Rolex Daytona owned by actor Paul Newman, a watch which originally retailed at a price as low as $210 in 1972, sold at auction in 2017 for a then-record $17.8 million.
What makes a watch desirable and what holds value
Many factors affect the desirability of a watch.
While there are roughly 450 Swiss watch brands, sales are concentrated in top brands, including Rolex, Cartier, Patek Philippe, Audemars Piguet, Omega, and Richard Mille, according to an annual report on watchmakers from Morgan Stanley and LuxeConsult.
"Brand reputation will usually be the most significant driver, but rarity, where it was manufactured, and a documented history of ownership are also major factors," said Sean Makovsky, the manager of the luxury division at Max Pawn, a Las Vegas-based pawn broker that deals in watches and other valuables. "Limited editions, retired models or watches tied to significant events tend to attract collectors," he added.
The watch brands experts most frequently cited for appreciating (or at least holding) their value are Rolex, Audemars Piguet and Patek Philippe. Recent prices for new watches from these brands started at $6,200, $11,300, and $18,000 respectively, but pricing in the market is always subject to change and the luxury market can be volatile.
If you can buy a new watch from one of these brands from a certified dealer at retail price, you might be able to sell it immediately on the secondary market for a profit, Tian said.
But that might not be easy.
Johnson said it can be difficult to obtain a hot selling watch from a dealer. "You're on a wait list, and the boutique decides when and whether you get to buy," he explained.
"In general, prices on the pre-owned market are a bit softer than new watches, especially when they are still available," said Robert-Jan Broer, founder of Fratello Watches, an online horology magazine based in the Netherlands. "However, this is not the case for watches that have such a high demand that they can't be easily bought new. Many Rolex sports models, but also watches from Patek Philippe and Audemars Piguet are simply unavailable new because the market is hot for them."
Other collectible watch brands
The Swiss brand Vacheron Constantin is also collectible, but generally does not hold value on the secondary market as well as Audemars Piguet, Patek Philippe or Rolex. New prices for a Vacheron Constantin start at $14,300 and the brand appeals to collectors for the beauty and craftsmanship of its watches. The brand also has historic appeal; it was established in 1755 and is the oldest watchmaker in continuous operation.
Some less expensive watches also draw interest from collectors.
Johnson cited vintage Seiko diver watches, Omega sports watches, and modern Tudor watches as decent collectibles. "The discontinued Seiko SKX007 dive watch trades around $257 and creeps up a little every year, which is about as dependable as watch values get at that price," Johnson said. He called out the Hamilton Khaki Field and Tissot PRX as popular entry points for new collectors, with used prices in the range of $400.
Makovsky also cited Hamilton automatic watches along with vintage Bulova Accutrons as offering value and long-term collectability without requiring a substantial investment.
At the other end of the affordability spectrum, Tian said MB&F (Maximilian Büsser & Friends), F.P. Journe, and Richard Mille are collectible brands that can also hold their value. New watches from these brands start at start at $3,300, $15,000, and $120,000, respectively.
Aside from the samples noted above, most watches can be expected to lose value over time. That doesn't mean they can't be collected, just that it might be wiser to buy used. "For most brands, you can get a used watch in great condition, for 40-50% off on the secondary market, Tian said.
New or used?
Buying new or pre-owned watches comes down to circumstances and personal preference.
"Buying new is simple," Johnson said. "You get a warranty, a brand new product, and the satisfaction of being the only person to ever wear it."
"The secondary market is a little more nuanced," Johnson said. "Everything on the used market already has the retail depreciation baked into the price and every single discontinued reference can be found somewhere, if you look hard enough. The trade-offs are real though: no warranty, mysterious service histories, and you have to do your own homework on both the watch and the seller. The money you save buying used could easily be lost to a surprise service or repair bill."
When buying used, it pays to be extra diligent. "Condition is critical," noted Makovsky, "An unpolished case, original dial, matching serial numbers, original bracelet, and complete box and papers can add substantial value. In many cases, two seemingly identical watches can differ in value by thousands of dollars simply because one is completely original and the other has replacement parts or has been over-restored."
Additional costs, mechanical issues, and scammers
Though there are digital watches that people collect and trade — such as the Casio G-Shock, which ranges in price from $40 to $80,000 — most high-end collectible watches are mechanical and operate through the complex interplay of tiny gears, forks, levers and springs. These wear out with regular use. A mechanical watch typically needs servicing every seven to 10 years, according to the experts, and cost depends on the brand, type and model of watch. This can be as low as $200-300, but more expensive watches, or those with mechanical complications such as dials for power-reserve, dates or the phases of the moon can cost thousands of dollars for one service or repair.
"Repair costs as such are hard to predict," Broer said. "If it needs a new crystal, winding crown, etc., the prices are fairly low. But if there's something wrong with the mechanism inside, or a special dial is cracked or damaged, it can become very expensive."
Proper storage is an essential part of protecting and preserving a luxury watch collection. "Watches should be kept in a dry, secure environment away from magnets, excessive humidity, and extreme temperatures, all of which can negatively affect their performance and long-term condition," Makovsky said. "A high-quality safe provides both security and a stable environment for most collections. For particularly valuable collections, professionally managed vault storage may be appropriate, offering an added layer of protection against theft, damage, and environmental risks."
Equally important is preserving everything that came with the watch. "Original boxes, warranty cards, certificates, manuals, hang tags, receipts, and service records should be kept in excellent condition and stored safely," Makovsky said, noting that a complete set of original packaging and documentation can significantly increase a watch's value.
Finally, look out for shady business practices or outright scams when buying or selling a watch.
"Where there's money to be made, there are crooks," Broer said. He said it's important to deal with trusted sources, including authorized dealers and brand boutiques. He noted that collectors can look into the reputation of those they deal with through word of mouth or when these companies have a good rating on watch marketplace sites, such as Chrono24.
"Outright fakes are the famous problem, but the sneakier one is the 'franken-watch'," Johnson said.
He explained that some dishonest sellers will combine components of different watches together and try to sell it as all-original. Other issues are scratched, damaged, or overly polished watches sold as mint, sellers who disappear after receiving payment, and shill bidding at online auctions.
"Even a completely genuine watch can come attached to a dishonest deal," Johnson said. "The defense is to use common sense: buy the seller before you buy the watch."
He also recommended that watch enthusiasts use payment methods with recourse, insist on original photos and serial numbers, and get anything expensive authenticated by an independent watchmaker.

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