Every year in April, there comes a day that nobody is particularly looking forward to… We’re talking about Tax Day! On or around April 15, the IRS imposes a deadline to file taxes from the previous calendar year. While filing your taxes can be tedious and usually feels like a hassle, there is one silver lining tucked away in this humdrum task: Soon enough, your tax refund will be on the way!
The U.S. Treasury estimates that over 75% of Americans overpay on their taxes, usually due to employers withholding too much. After you file your taxes and take advantage of the deductions and rebates available to you, you’ll receive a check from the IRS refunding you however much you overpaid throughout the year. It’s not exactly free money… but it kind of feels like it!
Most taxpayers receive their refunds within 21 days of filing. In other words, by May 6, nearly 200 million Americans will have some extra cash on hand. Now, here’s the real question: What are you going to do with your tax refund?
You might go on a shopping spree, plan a vacation, or pay down your mortgage… But have you thought about investing in a luxury watch? When you purchase a luxury timepiece from globally renowned brands like Patek Philippe, Rolex, Richard Mille, and Audemars Piguet, you’re buying an accessory that you can wear, enjoy, and potentially make a return on.
Today, let’s dive into the world of investing in luxury watches so you can get a taste of one great place to spend your tax return money.
Are Luxury Watches Good Investments?
Luxury watches undoubtedly have incredible cultural and aesthetic value – and in recent years, they have become increasingly recognized as a viable asset class and a strong investment. Upscale timepieces that are well-maintained and in good condition can hold their value and even appreciate over time.
Of course, like any investment, it is important to do your research and carefully evaluate key factors before you choose a luxury watch. You’ll want to consider aspects like the brand, the rarity, the popularity, the condition of the watch, and current market trends.
Like investing in the stock market, it is more difficult to make money on watches over a short period of time. Over a longer period of time, significant shifts in the market can render your collection of timepieces more valuable. Watches from respected brands with rich histories are the best investments if you’re looking to expand your collection. According to data from WatchCharts, market prices for Rolex, Patek Philippe, and Audemars Piguet watches all consistently trend above the retail prices for these pieces. However, brand isn’t the only factor to evaluate when choosing a watch to invest in, although it is one consideration.
Factors to Consider When Choosing an Investment Watch
When you’re looking for a premier luxury watch, what factors do you need to consider in order to make an informed decision?
Brand: Though not the only consideration when you invest in luxury timepieces, choosing a well-known brand with a strong reputation will help you feel confident that your watch will maintain or grow its value over time.
Condition: The condition that a watch is in when you purchase it is an incredibly important consideration. A watch that has never been worn or shows few signs of wear and tear will ultimately be worth more on the secondary market. Holding onto the original box and papers for a luxury watch will also help you prove its authenticity and will augment its value.
Rarity: Limited edition timepieces or watches that were produced as part of a limited or discontinued run are often worth more, as they are harder to obtain for interested collectors.
Popularity: Sometimes, celebrities or A-listers become big fans of a certain watch and are spotted wearing it. These sightings can enhance the value of a watch, as famous individuals are often considered tastemakers, and others want to mirror their style. Thus, watches owned or worn by celebrities often increase in value. A great example? The Rolex Submariner “Hulk” edition, which boomed in popularity when actor and comic Jonah Hill was photographed in it.
Market Trends: As with most investments, understanding the market trends for different timepieces is important if you’re looking to buy a watch specifically to get a return on your investment down the road. You can normally find data on the market price trends of certain models, and this information can help you make informed decisions on the right piece for you.
Top Luxury Watches to Invest in for 2025
The watches listed here are beautiful pieces from some of the most renowned brands that we carry. However, Avi & Co. is not a financial advisor nor can we offer you personalized investment advice. Before making a decision regarding a luxury watch to invest in, it is crucial to evaluate your finances independently and conduct your own market research. Avi & Co. is not responsible for any financial losses related to investing in luxury watches.
Rolex Cosmograph Daytona
One of Rolex’s most iconic lines, the Rolex Daytona has a long history associated with the world of high performance motorsports. Paul Newman was one of the original celebrities associated with the watch, and his own Rolex Daytona was sold at auction for a record-breaking $17.8 million in 2017. For years, the market price of the Cosmograph Daytona has exceeded the retail price of the watch, indicating strong demand for this line. The “Panda” edition, shown below, has a retail price of around $14K but frequently sells for over $30K on the secondary market.
Patek Philippe Nautilus
The Patek Philippe Nautilus is one of the most coveted lines from this storied Swiss brand. Certain references, such as the now-discontinued 5711 watches, are particularly desirable and sell for high values on the secondary market. However, most timepieces under the Nautilus umbrella are highly desirable and can add significant value to your watch collection. Certain Nautilus watches also offer more complications, like a moon phase or chronograph display, that add an element of interest and make them more rare and pricey.
Audemars Piguet Royal Oak
One of the so-called “big three” watchmakers, Audemars Piguet is a renowned Swiss brand and creates masterful watches that often command high prices on the secondary market. The brand’s flagship line, the Royal Oak, has been a staple of the horological world since the 1970s and was one of the first majorly successful stainless steel dress watches. Nowadays, the Royal Oak line is available in a variety of metals, dial colors, and finishes – but the iconic octagonal bezel and exposed screws on these pieces remain markers of their hallowed tradition and consistently high valuations. On the watch shown below, the three chronograph dials add an additional and desirable element of aesthetic and function.
Limited Edition Richard Mille Watches
While Richard Mille is a relative newcomer to the luxury watch scene – the company started in 2001, whereas old guard players like Audemars Piguet have been around for 150 years – the watchmaker has certainly made a splash with high value watches that are often exceptional investments. These sporty timepieces are often released in collaboration with Richard Mille’s prestigious suite of friends and partners, many of whom are high performance athletes. With the limited edition runs of Richard Mille collaborations comes increased demand and thus a strong potential for a return on your investment. For instance, consider this striking RM 011, which is a collaboration with legendary Brazilian motorsports racing driver Felipe Massa:
Invest in a Bright Future With Avi & Co.
Feeling the weight of that tax refund check in your pocket? Make an investment in your future when you shop our incredible selection of luxury watches at Avi & Co. You can explore our full inventory online, or you can head into one of our three upscale boutiques for a personalized shopping experience where you’ll get the chance to experience true luxury fastened around your very own wrist. In addition to our collection of watches from globally renowned brands, you can shop the popular new watches from Avi & Co.’s own branded lines as well as our suite of fine diamond jewelry. At Avi & Co., there’s no end to our commitment to the finer things in life.
So what are you waiting for? Make an appointment to visit us at one of our three stores – you can find us in New York City, Miami, and Aspen. We can’t wait to meet you!
