As the price of a watch climbs — and turns into more of an investment — maintenance, insurance, and security become increasingly important.
Purchase Price
The purchase price of mechanical watches can vary significantly based on several factors. When considering acquiring a mechanical watch, it’s essential to understand how aspects such as brand reputation, materials used, complexity of movement, and design influence pricing. Renowned brands often command higher prices due to their established reputation for quality, craftsmanship, and heritage. For instance, luxury watchmakers like Rolex, Audemars Piguet, and Patek Philippe not only represent sophistication and prestige but also ensure a level of reliability that often justifies their premium prices.
Mainstream brands that are not one of the three mentioned above typically can be negotiated down from the retail prices — unless they’re an in-demand or limited edition model — you might be able to get discounts in the 20-50% range.
Materials play a critical role in determining the cost as well. Commonly, mechanical watches are crafted from stainless steel (Rolex and few other brands used premium 904L stainless steel which has higher corrosion resistance and a slightly whiter appearance than the standard 316L stainless steel) or titanium (grade 2 is commercially pure, grade 5 is alloyed); however, options such as gold or platinum significantly elevate the price tag. Additionally, the watch crystal can be composed of premium synthetic sapphire (versus plexiglass, mineral glass, or hardened mineral glass), which is more durable and resistant to scratches, adding to the watch’s overall value. This also applies to the case and strap materials, where high-grade metals may reflect a higher cost.
The complexity of the movement is another vital factor. Mechanical watches with intricate complications, such as chronographs or perpetual calendars, usually demand a higher initial investment due to the craftsmanship involved in their creation. Conversely, simpler timepieces with fewer functions can be found at more accessible price points. Furthermore, design elements, including rare dial patterns, limited editions, and brand collaborations, can also impact pricing substantially.
In terms of price range, entry-level mechanical watches typically start around a few hundred dollars, catering to those new to the world of horology. Mid-range options may range from $1,000 to $10,000, striking a balance between quality and affordability. For those seeking luxury, prices can escalate well beyond $10,000, reflecting both artistry and investment potential.
Buying Pre-Owned
Buying pre-owned is another way to acquire a timepiece for less than the suggested retail price. However, make sure to work with dealers that have a great reputation, and ideally, put a warranty on the timepiece in case there are problems. If you’re meeting with an individual seller, this is best done at your bank or watch retailer for safety. You should have the piece authenticated by a retailer or directly with the brand. If you make the purchase online, ensure that you can have the watch authenticated upon delivery. In the case of eBay, the majority of non-modified watches that are over $2,000 and sold in the US are automatically authenticated, as an extra step, before you receive the watch. For any dealer or individual seller that requires a wire upfront, be very careful to make sure who you’re dealing with is reputable, because once that wire is sent, there’s little recourse.
Maintenance Costs
Owning a mechanical watch necessitates a commitment to ongoing maintenance and servicing to ensure its longevity and functionality. Unlike quartz watches, which often require little more than battery replacements, mechanical watches demand regular attention to keep them operating optimally. For most mechanical timepieces, it’s generally recommended that owners have their watches serviced every 3 to 5 years, and in some cases as long as 10 years. This regular servicing helps maintain accuracy, reliability, and can prevent significant issues that may arise due to neglect.
During a typical service interval, various maintenance tasks are performed. This includes the disassembly and thorough cleaning of the movement, the application of lubricants to reduce friction and wear, and the replacement of any worn-out parts. The movement’s intricate mechanics necessitate a skilled technician, and as a result, servicing costs can vary significantly depending on the brand, model, and complexity of the watch. On average, owners can expect to pay anywhere from $200 to over $1,000 for a complete service of a relatively common timepiece. However, when owning a high-end brand like Audemars Piguet, Patek Philippe, or FP Journe, you can expect service charges that can easily exceed $3,000, depending on the extent of what is being done. And if your watch is even rarer and/or more complicated, such as a Philippe Dufour, Roger Smith, Rexhep Rexhepi, or Kari Voutilainen, you might expect to pay over $5,000.
As a rule of thumb, a complicated chronograph costs more than a less complicated time-only watch to service.
Professional Watches spoke to a head watchmaker at one of The 1916 Company’s flagship stores recently, and he confirmed that a modern stainless steel Rolex Daytona or Omega Speedmaster Chronograph both cost $900 for an official brand-certified overhaul service. We also spoke with WatchCheck, and they quoted $960 for a comparable overhaul service.
In addition to the routine maintenance costs, owners should also consider the potential need for repairs stemming from regular wear and tear. Issues such as a damaged crystal, a faulty crown, or complications within the movement can lead to additional expenses. Neglecting maintenance or delaying servicing can exacerbate these problems, potentially resulting in more extensive and costly repairs down the line. Consequently, investing in regular upkeep not only preserves the value of the watch but also enhances its overall performance and appearance.
Service intervals of mechanical watches represent an area of debate. There are generally two schools of thought: one is to follow the 3-10 year manufacturer’s recommended service intervals, and the other is to wait until your watch starts keeping poor time or stops functioning before you service your watch. Considering the significant cost required to service a mechanical wristwatch, our suggestion is to service a watch at the regular intervals if your budget allows, and to wait until there’s a repair or timing issue if your budget is too limited.
Insuring your Mechanical Timepiece
Owning a mechanical watch, particularly a high-value piece, necessitates careful consideration regarding insurance and security. The initial cost of acquiring such a watch is only a part of the total financial commitment. Protecting that investment through appropriate insurance is essential to safeguard against potential losses due to theft, damage, or unforeseen events. Many insurance providers offer specialized coverage for luxury watches, which can be tailored to the specific value and risk factors associated with individual pieces. When evaluating insurance options, watch owners should consider factors such as appraisal value, replacement costs, and any deductibles associated with claims.
In most cases, a rider or endorsement is added to a homeowner’s or renter’s insurance policy to provide coverage specifically for luxury items like mechanical watches. It’s crucial to have an accurate appraisal to ensure that the watch is covered for its fair market value. Additionally, owners should revisit their insurance policies periodically to account for any fluctuations in value due to market trends or upgrades made to the watch over time.
Security of your Mechanical Timepiece
Security is another critical aspect of mechanical watch ownership. Protecting a watch from theft and damage requires implementing safe storage practices. It’s advisable to invest in a high-quality safe designed for luxury items (with a higher rating, within reason, based on the value of the watch), as this can provide an essential layer of security. When transporting the watch, owners should consider using a secure travel case to minimize the risk of loss or damage during transit. Additionally, precautions should be taken when wearing the watch in public or during travel to avoid attracting unwanted attention, especially considering that watch thefts have been on the rise in recent years.
The combination of proper insurance coverage and stringent security measures ensures mechanical watch owners can enjoy their prized possessions with peace of mind, knowing their investments are adequately protected against unforeseen circumstances.
Resale Value and Investment Potential
The resale market for mechanical watches is a complex landscape influenced by various factors that dictate their value over time. While certain high-end brands and limited-edition models can appreciate significantly (Rolex, Audemars Piguet, Patek Philippe), the same cannot be said for all mechanical watches. As a potential owner and perhaps a future seller, understanding these nuances is essential.
One of the primary determinants of resale value is the brand reputation. Luxury brands such as Rolex, Patek Philippe, and Audemars Piguet tend to hold their value exceptionally well, primarily due to their craftsmanship, heritage, and strong market demand. On the other hand, lesser-known brands or those with less historical significance may see a decline in value upon resale. Notably, rarity plays a critical role; models produced in limited quantities often command higher prices in the secondary market, making them more appealing to collectors and investors alike.
The condition of the watch also significantly affects its resale value. A well-maintained piece, complete with original packaging and documentation, will generally fetch a better price than a watch showing signs of wear or lacking original components. Regular servicing and proper care are crucial not only for the watch’s performance but also for maintaining or enhancing its market value.
Moreover, the provable historical significance (provenance) of a watch should not be overlooked. Timepieces associated with notable events, for instance, an Omega Speedmaster that has gone to space or a Rolex Daytona owned by someone famous, can often command significant premiums.
Thoughts
While mechanical watches can indeed be seen as investments, it’s essential to approach this perspective with care. Investing in watches requires an understanding of market trends and potential risks involved. A well-informed purchase can lead to tangible returns, but it must be framed within the broader context of personal enjoyment and passion for horology, and the cost of maintenance, insurance, and security should be factored in.
