Why Wealthy Peoples Like Luxury Watches?

Why Wealthy Peoples Like Luxury Watches? - Moniedism

Wealthy hobbies include wine, whiskey, classic cars, vintage clothing, art, coins, gold, shoes, and luxury watches. 

In each case, in addition to "enjoying itself", "investment factor" is added. Luxury watches are especially popular with young individual investors because they require little effort and expense to store and manage. 

Therefore, we will approach the appeal of "luxury watch investment" that combines hobbies and investment.

Why do wealthy people prefer easy-to-understand brand luxury watches?

There is an image among the wealthy people that they prefer "the only special watch in the world", but many wealthy people choose "brands that everyone knows"

For example, Rolex, which is popular regardless of age, and Patek Philippe, one of the world's three largest luxury watchmakers, are typical examples. Luxury watches will be the idols of many people, regardless of their income.

As long as there is demand for luxury watches that are liquid and affordable to the general public, the price will not drop easily. Since the brand value of a famous brand with a long history does not decline over time, it is unlikely that the asset value will decline in the long run.

Wealthy people own luxury watches as an asset, not just as a hobby because the value of their assets is not diminished. It has been selected as a portfolio of assets, a means of diversifying the risk of assets that can be afforded.

Benefits of luxury watch not available through equity investment

However, even if you invest in a luxury watch, you will not get income gains (shareholder benefits and dividend gains) like stock investment, and you will not generate economic profit while you own it. There is no guarantee that the luxury watch you buy will always go up in price, but rather it may go down in value depending on the condition.

Luxury watches have the risk of losing their asset value, but they have advantages that other investments do not have. That is, "you can enjoy wearing a watch until the time of sale." Unlike stocks and real estate, you can expect investment profits while using it as fashion, which is merit unique to luxury watches.

Similarly, wines and whiskeys, which are popular with the wealthy, lose their asset value as soon as they are opened. However, watches can increase in value even if they are second-hand items that you wear every day. 

Some people will see luxury watches as status and use them to motivate themselves. Also, in the younger generation, some people enjoy investing by buying and selling second-hand goods in the short term rather than holding them for a long time. 

The advantage of luxury watches from an investment perspective is that you can buy what you like, wear it, but not lose value, and ultimately make a profit.

Luxury watches that create the value of plus alpha

Luxury watches, which wealthy people like, sometimes add unexpected asset value. Prices may jump because "the actor wore it while making a drama or movie" or "it was out of print and a rare value was born". Whether or not the value of plus alpha will come out is not known unless it is held for a long time.

In recent years, vintage lovers have become more attracted to second-hand goods and are tending to buy "rare and story-like watches." 

The value of a watch is determined by combining various factors, such as not only the brand power but also the model that tells the history of luxury watches and the influence of the person who was wearing it before. "Creating unexpected value by holding it carefully for a long time" "Waiting for the value to increase while sometimes polishing". The aspect of "enhancing value while having fun" of luxury watches is somewhat similar to life.

Unexpected luck and value go up in luxury watches and human life

Your value lies beyond the result of "how you faced life." Like a luxury watch, you may be lucky enough to add value. As a result of constant efforts, it may be worth having.

Let's continue to polish ourselves and repeat our days like a luxury watch that is useful as a vintage item with a story of our own.

When you find a watch you like, why not take the plunge and buy it as an investment to increase the value of yourself and your watch?

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