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Hi all,

any idea do Omega watches appreciate or depreciate over time? How about their appreciation or depreciation numbers?

I suppose Limited editions or rare pieces like the "Grail speedmaster watch" or "SMP 300" do not depreciate as quickly.

Perhaps an X-33 now might appreciate in value since omega no longer releases it to be public.

what is your say in this? Do Omega watches appreciate or depreciate since you bought them? When you had it sold, did the price drop drastically?

 

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Hi all,

any idea do Omega watches appreciate or depreciate over time? How about their appreciation or depreciation numbers?

I suppose Limited editions or rare pieces like the "Grail speedmaster watch" or "SMP 300" do not depreciate as quickly.

Perhaps an X-33 now might appreciate in value since omega no longer releases it to be public.

what is your say in this? Do Omega watches appreciate or depreciate since you bought them? When you had it sold, did the price drop drastically?

something is worth what someone will pay for it. none of the watches i've bought new have appreciated in value but some of the watches i've bought second hand i could possibly sell for more than i paid. the best example i have in terms of percentage is a sanyo i bought for £20 that i've seen advertised for £160.
 

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Well, I think if you buy watches to make money, you are in the wrong business. However, from time to time one acquires something that can be sold at a profit. None of my watches save one have appreciated. My dad bought this Heuer in 1973 for approx $250. I've seen badly beat up versions from time to time on ebay for up to 2K. I recently had it completely overhauled for around $800 so most of my profit would be gone if I ever chose to sell it ... which I wouldn't.



- David
 

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I guess that if you buy vintage it is like buying any antiques. It could be good investment and it could not. Look at the prizes of some popular omega models.
Ploproof 4 years ago. 1500$ Today asking prize 8000$.
Speedmaster 2915,4 years ago 50000$ and now 25 000$
Generally vintage Omega watches has been a real good investment.


this one i got for 1300$ some years ago. wonder what i would get if i sold it today.
:-d:-d
 

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I'm not sure about the value (doubt the collection is increasing in value, and with wear and maintenance, I'd expect it to be a big economic loser over time), but your post made me think of this quotation -

"My Biggest worry is that when I'm dead and gone, my wife will sell my fishing gear for what I said I paid for it." - Koos Brandt

I think the same might apply to watches for a few of us.... b-) John
 

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I think of my watch as strictly an heirloom, something to give to my kids. I highly doubt many actually go up in value, especially if you figure in the rate of inflation. I mean if you paid $300 for a watch 30 years ago and now it's worth $500 you "made money" but not much of a smart investment.
 

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Frogman, you may want to reverse your diagram: paper fiat currency perpetually loses value due to inflation, whereas precious metal (gold coin?) retains its value. Anyway... I think that if you're looking to turn a profit off watches, you're likely in for a big disappointment.

Especially when you take into account that you need to shell-out 2-500.00 every 4-8 years on maintenance, the only party getting richer is the watch company :)
 

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Hi all,

any idea do Omega watches appreciate or depreciate over time? How about their appreciation or depreciation numbers?

I suppose Limited editions or rare pieces like the "Grail speedmaster watch" or "SMP 300" do not depreciate as quickly.

Perhaps an X-33 now might appreciate in value since omega no longer releases it to be public.

what is your say in this? Do Omega watches appreciate or depreciate since you bought them? When you had it sold, did the price drop drastically?

They generally depreciate in value, with a few rare and primarily cult pieces appreciating in value.

If you believe that current vintage prices tend to move in relation to current watch prices, then prices should have increased considerably in the last 40 years.

I've posted about this at length, but in general, US prices of Swiss watches have increased about 4 times since 1967 due to exchange rate changes, increased about 6 times due to inflation (6.24 times since 1967) and have simply increased in real terms by about 30%, using the hesalite Speedy Pro as a bellwether. I chose the Speedy Pro because it has been produced basically unchanged since 1957.

Here's the math: the Swiss price of a Speedy Pro hesalite was CHF 465 in 1967. The US dollar equivalent then was $107. Inflation has increased US prices overall 6.24 times, or to $671. But the US dollar price to purchase one Swiss franc has changed from $0.23 to $0.88, increasing the $671 to $2,539. The remaining "real" price increase has been 26%, to the current US MSRP of $3,200.

Since 1967 the retail price of a new Speedy has increased in price in the US almost 30 times. Vintage Omega prices have increased dramatically as well.

But what will happen in the future? Inflation and exchange rates will have an effect on new retail prices, some of which will be reflected in vintage prices.
 

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I think of my watch as strictly an heirloom, something to give to my kids. I highly doubt many actually go up in value, especially if you figure in the rate of inflation. I mean if you paid $300 for a watch 30 years ago and now it's worth $500 you "made money" but not much of a smart investment.
LOL. Kind of like those on "Antiques Roadshow," who learn that their jewelry purchased in the 20s for $1500 is now worth $10000, and whoop for joy at the "astounding" appreciation.

Then again, you have someone like me with a mint condition 1930s high-end C Melody Saxophone. Could barely give it away if I wanted to.
The market is fickle.
 

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My Biggest worry is that when I'm dead and gone, my wife will sell my fishing gear for what I said I paid for it." - Koos Brandt

that´s a good one ;-) counts for me when talking about watches to my wife :-d

no honestly...

i started to collect watches about 2 years ago and i am in the lucky position
that i mostly finance it by buying and selling other watches. The market price of certain watches is ruled by the collector himself, he makes the price and at the bay you mostly find a buyer for any kind of watch you want to sell. :think:
But what will happen if it is only a hype, like the swatch boom in the 90ties :think:
The main theme of my collection are lemania powered watches and these gain a lot of popularity right now, getting a cheap one (below 350USD)
is quite rare to impossible no matter what it looks like.
But it could be that in a year or so nobody is interested in these watches and prices will decrease again. (would love to see that :-d)

So from the financing status i buy watches that don´t fit into my collection
in order that i won´t regret selling them ;-)
Quite often it isn´t that easy (i still regret selling my restored SM300)o|
but from the extra money i made, i did buy a Mk IV and that on ewill stay.

Another point is that i try to keep my investments low i only bought one watch that did cost me over 1000Euros and i really try to keep it that way.

(wonder where i will find the 376.0822 and the 176.004 for that price
but i can wait ;-);-))

A lil bit of confusing but i hope you get the point. :)
 

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Im pretty sure the watch that Neil Armstrong/Buzz wore would appreciate similarly to infinity and beyond heh

Otherwise most modern timepieces are not really a good move for an investment - maybe the limited editions.
 

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Hi -

I'm an economist, and if you think watches are an investment instrument, then can I sell you a bridge?

Seriously, there are only four ways to make money in the watch business. The first two really don't count (be a manufacturer, be a retailer), the other two are of possible interest.

The first of these is to be that incredibly lucky person who goes out, finds perfect condition Omega Constellations and Seamaster 300s at flea markets and buffs up the crystal and flips it. That person doesn't exist, except in stories.

The other person gets on waiting lists for top-notch watches very strong in demand, such as the new Rolex Milgauss, and 6 months later actually gets the watch. That person has already found buyers for the watch who simply aren't willing to wait that long, usually new money or new collectors, and sells the watch at a significant premium (at least 25% over list) for somebody else's convenience. A colleague at work does this and has 4 Rolex Daytonas in the pipeline that should arrive over the next 2 years. He's got a deal with an auction house, and sees between 25% and 35% net return on his purchases. But it's a high-risk investment - fashion is oh so fickle, and maybe Arnold will start wearing 32mm watches and that will be the new fad - and you need to have a decent cash flow to begin with in case the watches come in early. My colleague uses the sales to finance his own Rolex fetish, as well as build up business relationships (works quite well, as a matter of fact).

If you go the latter route, then you need to find out the watches in greatest demand and with the longest delivery date, and you order those: you need capital as well, as the AD will want a deposit and you might have to take early delivery if they suddenly get a delivery, i.e. you may need to come up with $20k or more within a day or two. If you were to order two each of, say, the top-of-the-line Brueget, Patek, Rolex, Omega, whatever, that can rapidly turn into a six-figure sum. The key is getting the watch and never, ever wearing it, indeed never getting the warranty filled out until you flip the watch.

Basically, this fulfills a wholesaler function within the watch community, of providing hard-to-find items for a certain additional cost. AD sometimes will fill this function, but generally speaking they are at the mercy of the manufacturers, while anyone doing this can put together a substantial collection, investing, say, $200k, and in auction that might turn into substantially more money.

Or it might not: if, for instance, the supply of Rolex Daytonas were to increase sharply, or demand drop significantly, then my colleague will be sitting on $80k of merchandise he won't make any money on.

And when calculating return on investment, please don't forget to discount by opportunity costs. Might surprise you how little money you can make with watches that way...

JohnF
 

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Christian already told you about the new Rolex Yacht-Master II and the new GMT Master II. The other Rolex announcement at Basel of interest is the new Rolex Milgauss, so named for its ability to resist a magnetic field of 1,000 Gauss.

Why should you care?

If you take a mechanical watch into a strong magnetic field, some of the parts in the movement become magnetized which causes problems; typically the watch will start to run quite fast and require demagnetization. The hairspring, made of an alloy called Nivarox, is particularly susceptible. A watch is normally considered "antimagnetic" (DIN 8309) if it can ignore 4,800 A/m. This works out to about 60 gauss, or 6% of what the new Rolex is rated for. Rolex achieved the superior rating of the Milgauss by encasing the movement in soft iron, which is known as a Faraday cage. They also introduced a new hairspring material, Parachrom-Blu, which is unaffected by magnetism. Quite an achievement!

The Milgauss model has an interesting history. It was introduced in 1954 for people who worked in environments with strong magnetic fields: power plants, research labs, etc. As you might suspect, that's a pretty small market, further crowded by the IWC Ingenieur, the Patek Philippe Amagnetic, and the Omega Railmaster, all of which had similar magnetic resistance. The Milgauss was the slowest seller in the Rolex lineup, and was sold for about 20 years before being removed from their catalog.

The Milgauss comes in the new, slightly larger case size of 40mm, with the 3131 movement. There are white and black dial versions available, both with a nifty and surprisingly modern lightning shaped second hand and 'ROLEXROLEXROLEX' around the face on the chapter ring. (As Christian noted, for better or worse, the new models are more heavily branded than their predecessors.) One difference between the two versions is that the black dial has a sapphire crystal that is slightly green at an angle, as you can see from the image gallery on their site. List price on both is rumored to be $5,900.

One word of caution: for the new model, Rolex also lists "medical imaging" as a target market, but a bit of math reveals this to be disingenuous. Current MRI systems start at 0.3T and go up to 5T. Even the smallest of those is 3 times the rating of the Milgauss, so don't take your new watch into the MRI!

I used to work in a couple of physics labs, so I like seeing reintroduction like this. Nowadays, the IWC Ingenieur and Ball Engineer are the only competition for mechanical watches designed to function in strong magnetic fields. Compared to the competition, the Milgauss adds an elegant face, first-class movement, the unique second hand, and the green sapphire crystal. I've never considered a Rolex before, but if I do, it'll be the black-
faced Milgauss. By Paul Hubbard
 
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