4 days ago
A Matter Of Time: Estate Planning And Watch Collecting
Gears and rubies inside an antique watch. Other images in: ... More
In 2025, the global luxury watch market is thriving, with its value expected to grow from $104.21 billion to $158.19 billion by 2033; driven by demand for luxury brands like Rolex and Patek Philippe, as well as the continued popularity of smartwatches from Apple and Samsung. The U.S. market alone is projected to increase significantly. The pre-owned luxury watch market has stabilized after previous volatility, and new consumer demographics, especially Millennials and Gen Z, are influencing trends, with a focus on digital engagement and innovation. Aesthetic shifts include a growing demand for retro and vintage-inspired pieces, genderless styles, and bold designs.
With this strong market, and the fact that collecting watches is a multi-generational activity, I spoke to Edouard Caumon, the US Country Manager for Watchfinder & Co., about the complexities of the watch market, especially in the context of estate planning.
Edouard, with a rich background with prestigious watch companies like the Cartier and Richemont Group, highlighted the pivotal role of Watchfinder in authenticating and refurbishing pre-owned watches. He noted that pre-owned watches offer enthusiasts access to 95% of all watches ever produced, presenting a unique investment opportunity. Notably, 60%-64% of watches from brands like Rolex, Patek Philippe, and Audemars Piguet resell above their retail price, a testament to their enduring value.
The conversation also touched on the evolving interest in watch collecting among younger generations, particularly Gen Z. Edouard observed a growing trend of younger individuals viewing watches as viable investments, sometimes even favoring them over traditional assets like gold or real estate. This shift underscores the importance of understanding the asset potential of watches within estate planning.
When asked about the common pitfalls collectors and their advisors face in estate planning for collectors of watches, Edouard emphasized the necessity of authenticating and inspecting collections to avoid counterfeit parts, a crucial step in safeguarding their value. He shared anecdotes of a collector who purchased a watch for $90,000 from an online source, only to find out that the watch had a counterfeit movement and is, basically, worthless.
Cultural nuances also play a significant role in watch collecting. Edouard noted distinct differences among American, Asian, and European collectors, with varying approaches to secondary goods and trading cultures. American collectors are more accustomed to trading watches, that is buying then selling to acquire better or rarer watches. Asian buyers traditionally preferred buying new watches over pre-owned watches, but that is changing with the younger generation of collectors. European collectors tend not to sell watches but rather hand down watches to family and friends as a legacy. This variability highlights the importance of tailored strategies in estate planning to accommodate diverse preferences and market dynamics.
Accessorizing trends are reshaping the watch market, with smaller watches gaining popularity. Edouard shared innovative examples of watches being set into rings and cufflinks, reflecting a broader trend of personalization in luxury items. These evolving trends further complicate the valuation and planning processes for collectors looking to integrate watches into their estates.
Our conversation underscored the intricate relationship between the financial and the emotional value of collecting, and its impact on how people collect and therefore how their estate plans are impacted. Watches continue to hold significant financial and sentimental value, and may be one of the best performing investments in the years to come: understanding their role within an estate is crucial. By recognizing the importance of authenticity, cultural differences, and market trends, collectors can better navigate the complexities of integrating watches into their estate planning strategies.
