Is A Patek Philippe Watch A Good Investment?

Yes, absolutely some Patek Philippe watches can be a good investment but a luxury watch is not the sort of purchase you should make lightly.

You should do plenty of research before committing to a particular model or brand. There are lots of reasons why people purchase luxury watches, too. Some have an affinity for the fine engineering that goes into producing a premium-quality timepiece, whereas others simply enjoy the aesthetic and the feel of a watch on the wrist. For some, a watch is simply an investment.

Naturally, some luxury watch brands tend to have more provenance than others, which means that they’re more likely to hold their value or even increase drastically in the future. Patek Philippe is one such manufacturer, and it’s easy to understand why.

Patek Philippe is considered one of the world’s most illustrious luxury watchmakers, with a fanbase that includes some of society’s most revered actors, musicians and dignitaries - but is a Patek Philippe watch a good investment? In short, yes. Here’s why:

Your Patek Philippe Watch May Go Up In Value

If you’re thinking about investing in a Patek Philippe watch, you’ll naturally be on the lookout for something that is going to appreciate in value over time. While it’s worth pointing out that a little bit of research goes a long way in terms of choosing a watch that is likely to accrue in value, the good news is that Patek Philippe models are renowned for holding their own, regardless of the current economic climate.

Certain models tend to gain more provenance over the years, and this is what you need to be on the lookout for. Over the years, models tend to become more scarce - the law of entropy dictates that some will become damaged or misplaced, thereby decreasing the level of supply. By virtue of simply holding on to your Patek Philippe, it becomes a more lucrative investment over time.

While it’s true that not all Patek Philippe models increase in value, Nautilus and Aquanaut models in particular have had a tendency to accrue worth as the years go on. For example, the Nautilus 5711/A, which retailed for £25,000 at launch in 2006, now regularly fetches over £70,000 on the secondary market. It doesn’t take the Wolf of Wall Street to figure out that savvy purchasers can today enjoy returns of almost 200% on an investment made just 15 years ago.

In some instances, all it takes is a social media post or paparazzi snap of a celebrity in their favourite Patek Philippe for a particular model to increase in value. It, therefore, pays to keep an eye on the latest online trends.

As an example of just how much Patek Philippe watches can be worth, we can also look back to the winter of 2019, when a limited-edition Grandmaster Chime 6300A-010 broke the world record for the most expensive watch purchased at auction. The model was purchased by a private telephone bidder for an incredible £24.2 million, at an auction held in Geneva’s Four Seasons Hotel des Bergues. Realistically, not every timepiece can command this sort of price tag - but it’s a surefire example of how investing in Patek Philippe watches can be incredibly lucrative indeed.

You Can Enjoy Your Patek Philippe Watch While It Accumulates In Value

The beauty of a Patek Philippe is that you and those around you get to enjoy your investment. Let’s be honest - many investments are boring. It’s not like you can wear your stocks and shares to a black-tie function, and it’s unlikely that anybody will compliment you on the gold you have stored in a secret safe deposit box.

With a Patek Philippe, you can enjoy a fun way to invest while also being able to display your status as a member of an exclusive club that includes members like Brad Pitt, Jonah Hill, Jesse Lingard and Jeff Bezos. It’s a way of wearing your investment success on your sleeve.

Patek Philippe Production Levels Are Low, While Demand Is High

The basic tenet of investing for beginners is to buy low and sell high. However, the laws of supply and demand also govern the worth of a commodity, which is why it makes sense to invest in something with a finite circulation which is also highly sought-after. Precious stones and metals are great examples of this - and so are Patek Philippe watches.

Patek Philippe employs approximately 2,000 skilled artisan watchmakers, and this team is capable of producing just 62,000 timepieces in Geneva each year. Because the brand is one of the most highly-revered among horology aficionados, demand far outstrips supply. This means there are often waiting lists of several years for some of the most sought-after models.

As a result, many Patek Philippe fans turn to the secondary market to source their preferred timepieces, with demand helping to vastly increase prices. Invest wisely, and you could enjoy healthy returns on a mint condition Patek Philippe watch in a matter of months.

There Is No Inheritance Tax On Patek Philippe Watches In The UK

The beauty of Patek Philippe watches is that they are far more than simple timepieces. They represent a moment in history and are often passed down through the generations as family heirlooms. If you’re intending on passing down your Patek Philippe to a loved one as a gift, they won’t be expected to pay any inheritance tax on their gains should they choose to sell it.

However, it is worth noting that UK inheritance tax laws are subject to change, and it can be worthwhile consulting a financial advisor before investing in a luxury timepiece with the express purpose of passing it down as an inheritance.

You Won’t Pay Capital Gains Tax On A Patek Philippe Watch If It’s A Personal Purchase

It’s reassuring that you can treat yourself to a luxury watch while also investing in your future. In the UK, you don’t have to pay any Capital Gains Tax on personal possessions if they are expected to have a lifespan of fewer than 50 years. This can include things like antiques such as clocks or timepieces.

The law states that some assets, such as shares or cryptocurrency investments, are subject to CGT. Many people are dismayed to find that much of their returns on investment are swallowed by Capital Gains Tax when it comes to “cashing out”. With a Patek Philippe watch you can make a purchase within the UK, safe in the knowledge that as a personal possession, you won’t be stung by any unexpected tax bills.

Of course, laws are always subject to change, and it makes sense to discuss things with an accountant or financial advisor prior to purchasing a Patek Philippe with the intention of selling it for profit.

Conclusion

Despite current economic uncertainty, luxury Patek Philippe timepieces tend to perform well from an investment perspective irrespective of the financial climate. Whether you’re a seasoned investor looking to sell or are a newcomer to the world of horology considering which model to start your collection with, it makes sense to use Chrono Hunter to ensure you receive the best possible value for money.

With Chono Hunter, you’ll have complete control over the process. Over the years, we’ve forged strong working relationships with luxury watch dealers to ensure you can enjoy:

The best prices on the secondary market.

Up-to-date offers on the latest models.

Accurate stock levels and real-time pricing to allow you to take advantage of the current market.

World-beating customer service and after-sales care.

To learn more about investing in luxury watches, or to buy or sell a Patek Philippe, please do not hesitate to get in touch with our friendly, professional and experienced team today. We’ll be happy to advise you further and answer any questions you may have about investing in luxury timepieces.

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