Collection-level watches as an investment
In times of low return on, or high volatility of, traditional financial assets, certain securities may become attractive to investors. Gold, art, jewellery, watches, or even bottles of wine, may appear to be profitable investments.
This perception, however, is misleading, since there exist many variables that control whether or not these are good or bad investments. In addition, these products are all bought and sold on unregulated markets, making access difficult for non-experts.
Among these, gold is the most transparent, as its purchase and sale prices are public and transactions can be carried out in specialized shops that are usually subject to strict control measures by financial regulators.
Art, jewellery, wine and other, similar products are extraordinarily complex assets, as in the majority of cases they are unique pieces, a peculiarity that prevents tracing of their historical price evolution. In addition, they are traded on unregulated markets where information is highly asymmetrical, making it difficult for individuals to obtain positive returns.
An asset to be enjoyed on a daily basis.
While watches may be considered an investment, like gold and other assets, one must be wary, as not all of them have a potential for revaluation. Only certain pieces fall into this category, and the criteria is based on a series of parameters that includes scarcity, trends, existing demand, and the metals and techniques used in the manufacturing process. It is also important to consider that, for a particular model, the investment potential may also vary, depending on quality, condition of the components, the components that may have been replaced over the years, etc.
In short, some watches, though not all, may be considered attractive investments, and it is essential to seek expert advice when acquiring them in order to gain prior knowledge of their full potential.
In any case, and independently of their future revaluation, what is beyond doubt is that watches are one of the few assets that can be enjoyed on a daily basis by the collectors who treasure them.
Rigour in appraisal
It matters not whether the piece in question is a high value piece, a watch considered as an investment, a unique piece, or one of regular production. For Icône, what is important is that all the characteristics of the piece are closely examined prior to purchase. At heart we are collectors, not dealers, and the same level of scrutiny we apply to each new addition to our collection is applied to any piece that will bear our seal of assurance.
As we stated earlier, this analysis is essential, and it is so for two reasons. Firstly, to be able to describe the watch and all its components with absolute accuracy: which parts are original and which are not, which components, while they may be original, do not correspond to the time of manufacture, as they have been replaced, and the visible or hidden defects a piece may have… all of which leads to the second reason: to be able to estimate the market price of the watch and the potential for revaluation, if any, that the piece may have in the future, in order to convey all this information to potential customers.
The above statement includes one of the reasons for the international recognition that is afforded Icône, namely our eagerness to transfer all the information about the piece to the customer in an effort to facilitate the best possible purchase decision. For Icône, it is not a question of just selling watches, but rather one of guiding the potential buyer along a path that we, as collectors, have travelled on many occasions. This appraisal service is the principal value that we can pass on to our customers.
