Watch Collecting

Sean O'Rourke's friends think he has a problem. Not long ago, O'Rourke purchased his eighth IWC wristwatch and regularly communicates with like-minded enthusiasts around the world via email and Internet bulletin boards. An executive with an advertising firm and just 34 years old, O'Rourke is typical of the new breed of watch enthusiast: a successful, well-adjusted professional who found himself attracted to IWC's understated look and abundant technical qualities.

And O'Rourke doesn't think his problem is out of hand. "I know one collector in particular who has more than seventy IWCs, some still in the original packaging," he says. "Compared to him, my habit is still quite modest."

Knowledge Based Watch Collecting

Watch appreciation has been compared to that of wine, but in many ways it is an even more knowledge-based pursuit because so much of the enjoyment comes from knowing the history and level of craftsmanship that goes into each piece, especially a traditional mechanical watch from a venerable watch company. In fact, many inveterate collectors know more about the field and their favorite brands than most of the top executives in Switzerland. If you want to start a watch collection, the first thing you should do is learn as much as you can. These days the learning process is easier and more accessible than ever before. There are books and watch stores as there always have been, but today the proliferation of watch magazines and watch-related Internet sites, such as WatchSourceGuide.com, have made so much material available you can easily develop a working knowledge of many different areas in the privacy of your own home. What you choose to learn, or collect, for that matter, is strictly a matter of taste. Almost all collectors eventually find some sort of specialty. Some, like Sean O'Rourke, have concentrated on contemporary models from brands that appeal to them. Other collectors are drawn to historical periods or specific watch types, such as military timepieces, or American railroad pocket watches, a genre with a surprisingly large following. The nature of watch collecting has changed profoundly since the days when watch collectors comprised a small circle of often very wealthy devotees who pursued pocket watches. A little over twenty years ago, latter day collectors began focusing on mechanical wristwatches.

Produced in far higher numbers and able to be enjoyed daily as a fashion accessory, thousands of new enthusiasts began to seriously collect new and vintage mechanical wristwatches. Collecting today is really a pleasure. Wristwatches allow you to show the quality of your life and your culture. It's also easy. You just put it on your wrist and go someplace where it is appreciated.

A Question Of Money

Value is a question every collector at one time or another will face. Once you start buying beyond your practical needs, a watch collection can very quickly turn into a very serious financial outlay. For those who buy their watches new at retail, the unfortunate truth is that, like automobiles, almost all of them depreciate significantly once you take them out the door. If you buy your watch through an authorized retailer, however, you are protected by a warranty and from the possibility of fakes and misrepresentation, which does occur in the secondary market. For many collectors, the extra security is well worth the initial loss in value.

One look at the Internet will show you that watches, even from prestigious manufacturers, abound in unauthorized channels, though the trustworthiness of these is virtually impossible to gauge. Caveat emptor, buyer beware, is a phrase to live by in any of these environments.

Watch Auctions

For the most exclusive pieces from prestige brands, the auction market for watches now resembles that of fine art, with international, deep-pocketed bidders, expert appraisals and astronomical prices. A one-of-a-kind platinum Patek Philippe world-time wristwatch sold in 2002 for the eye-popping sum of $4.28 million. Even since the heady days of the late 1990s, prices for the rarest and most complicated models from the best brands have steadily risen. But finding the models that have the potential for further increase is no easy task. The best thing to do for future valuation is to buy the most traditional and widely collected brands - these are the most important in Switzerland. The reputation of the maker and model is a very important factor in establishing the price, but there are many others at work. The condition of the piece is obviously important. Not only should it be free from major blemishes and be running, any reconstructive work must be very carefully examined. Poorly executed work of this type can often ruin the value. Rarity is also critical, especially at the top end of the market where serious collectors expend considerable research and money to acquire hard-to-find models. While the auction houses talk about record prices and how some of their watches have outperformed conventional asset classes, the word investment is an extremely dangerous one for collectors, especially novices. Finding a watch that is likely to go up in value takes detailed knowledge and oftentimes you will find yourself bidding against the watch companies themselves, which use the company archives as a proprietary tool. Collectors are on far safer ground letting their passion for watches dictate how much they spend. One collector who started collecting four years ago, slowly assembling a range of sporty timepieces including the Omega Speedmaster Professional and Breitling's Montbrilliant says, "I work from my home in a very conceptual field, but I've always loved to take things apart. My watches reconnect me with the tactile side of my personality."