A valuable watch requires specialised insurance, regular servicing and maintenance, repairs, and secure storage and travel considerations. Or you risk losing value.
What’s your Rolex Pepsi (Oyster Perpetual GMT-Master II) worth now? An updated appraisal can help.
Rolex
For a lot of watch collectors, it’s the journey that counts: finding the perfect watch, tracking a grail piece, sitting on a waitlist, and in the meantime discussing the whole process with a fun community of like-minded watch lovers.
What is less discussed, and far less fun, is the cost of ownership once a watch is acquired.
A valuable watch requires specialised insurance, regular servicing and maintenance, repairs, and secure storage and travel considerations, not to mention keeping up with market conditions that affect its value.
The Ulysse Nardin Freak X Blue.
Ulysse Nardin
Getting the proper insurance should be a basic consideration, and that includes getting regular updated appraisals, because value can fluctuate – retail prices, gold prices and shifts in desirability all add up to potential deviations in value. Rising gold prices alone have pushed up the underlying value of many timepieces in just the past year, leaving some collections underinsured.
“The biggest gap in traditional insurance coverage is almost always between what you paid and what your collection is actually worth today,” says Joshua Ganjei, CEO of European Watch Company, which teams with Chubb insurance to offer an insurance program designed specifically for luxury watches.
“The longer a policy goes without being updated, the worse it gets,” warns Ganjei. “You find out the hard way when you’re underinsured and can’t cover the cost to replace the watch. For example, if you insured a Rolex at retail five years ago, that number is already out of date. Insuring for the retail price won’t help you replace it, either.
A Pepsi GMT was US$11,800 at retail before it was discontinued [earlier this year].
Good luck finding one for that now on the secondary market.”
TAG Heuer Monaco Evergraph.
TAG Heuer
Maintenance is another important part of asset protection. “Generally, a watch should be serviced every three-to-five years, depending on the caliber,” says Linden Lazarus, co-founder of WatchCheck, a U.S.-based white-glove watch repair platform that allows you to service, repair or refurbish a watch with little effort.
WatchCheck sends clients a shipping kit to pick up the watch, prepares a free service quote, uses manufacturer parts, and owners abreast of the process. All work comes with a two-year warranty. WatchCheck ships it back to the client, covering all insurance costs.
“Not servicing a watch can lead to premature wear, generally requiring more extensive (and expensive) repairs down the line,” says Lazarus, who says a complete service overhaul costs on average around $800-$900 for a high-end mechanical timepiece.
Getting your watch regularly serviced also affects resale value. “One thing that keeps coming up is service history,” says Lazarus. “More and more, buyers are asking about it before they commit to a purchase. A well-documented service history helps you get more value for your timepiece when it comes time to sell.”
The Jaeger-LeCoultre Hybris Inventiva Gyrotourbillon Stratosphere.
Jaeger-LeCoultre
The company works with Stoll & Co., a Dayton, Ohio-based watch repair company that partners with leading watch brands, including Cartier and Jaeger-LeCoultre, as their official service center. It also partners with companies like Sotheby’s, Material Good and Luxury Bazaar.
“Sending a watch to Switzerland via an Authorized Dealer is certainly an alternative, but it leaves most collectors wanting more in terms of timeline, transparency and control,” says Lazarus. “Independent repair facilities exist throughout the country/world, but most are inaccessible and inconvenient at best, and untrustworthy at worst.”
Speaking of rip-offs, Ganjei advises rigorous protection against theft. “Thieves are getting smarter, and they’re targeting collectors both at home and while traveling,” he says. “A lot of people assume a safe covers them, but many safes aren’t as secure as you might think. Adding a home alarm and being mindful of your digital footprint can make a real difference in protecting your collection.”
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