30 October 2012
Older the Worthier
When the Rolex Reference 4113 split-second chronograph wristwatch was sold for US$1,160,000 (approximately HK$9 million) at Christie's last year, many couldn't help but wonder just how great an investment potential a vintage timepiece possess. "In my case, the Panerai PAM 21 I bought for HK$190,000 in 1997 was sold for HK$1.4 million this year," said Patrick Tsang, owner of The Vintage Concept and experienced timepiece investor.
There are three things to note when investing in timepieces: brand, model and accreditation. "Brand is the first and foremost thing to heed when investing in timepieces," said Tsang. "Rolex and Panerai are among the most popular in Hong Kong – the increase in value for the timepieces of these two brands is head and shoulder above the other second- or third-tier brands." Its prestigious status in the industry alone makes Rolex a class above the rest, top that with the limited production models, timepieces by Rolex are tagged at around HK$40,000 – HK$50,000 per piece, hence simplifying the mechanism of investment for beginners. At the same time, there is Panerai, which has once used the Rolex movement in the 1950s, and which has become popular among collectors for its discontinued models.
The model and style of preference varies among different markets. In Hong Kong, the favourite remains to be Rolex sports watches such as Submariner and Sea Dweller from between the 1950s and 1970s, not least because the prices of newer watches are often upped – in fact, the later a timepiece is purchased, the higher the price. Watches with an acrylic surface and gilt dial are also bags of investment potential. On the other hand, in the realm of Panerai, discontinued models or watches of limited production are much sought-after. The Panerai 6152, which has an easier availability, is tagged at a staggering bottom price of HK$1 million – you can imagine much higher prices for even rarer models.
When investing in vintage items, it's of paramount importance to authenticate the item, which means the presentation of certification by the manufacturer (better still if it comes with the original box). You'll be surprised by how much a Rolex vintage watch without a certificate can depreciate in price, and the fast dwindling buyers' interest for a Panerai in similar condition. You may also want to note that there is less potential for value increase for vintage timepieces with parts replaced. Here are a few things you'll need to bear in mind if you're interested in becoming a vintage timepiece investor:
1. Gather information on the watch, professional analyst, market report and the latest auction results before purchase, and familiarise yourself with the details of the watch, such as bezel, strap, and the hour and minute markers. Online watch websites such as www.watchtime.com and http://iwmagazine.com are good sources of reference too.
2. Pick a trustworthy watch dealer to ensure proper maintenance when needs be.
3. Unpolished vintage watches are always worth more.
4. Avoidance of water is key to vintage watch maintenance.
Special Thanks:
Patrick Tsang, owner of The Vintage Concept and experienced timepiece investor
Smart Decisions