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Antique watches still a good buy in hard times

By Wang Ying (China Daily)
Updated: 2009-04-07 07:56

As the financial tsunami is destroying asset values around the world, hold on to your watches. They are holding up pretty well against the onslaught of the worst economic crisis since the Great Depression.

Of course, not all watches will do. They have to be timepieces of collector grade hand-made by the master craftsmen of renowned Swiss watch makers.

In a recent auction of antique watches by Christie's in Hong Kong, 84 percent of the items put on the block were sold, an unusually high ratio at any auction.

"Collectors of high-end watches have much to be optimistic about as the auction market for rare timepieces remains buoyant," said Tim Bourne, international co-head of Christie's Watch Department.

According to Antiquorum, the world's leading watch auctioneer, a total of $4.78 million worth of timepieces was sold in their latest auction held in Geneva.

"These results are particularly noteworthy considering the backdrop of uncertainty in the financial markets, and underscore that the demand for exceptional quality watches remains sturdy even in today's challenging environment," said Bourne.

"Due to the financial crisis, we have a 10 to 30 percent fall in the evaluation and hammer prices," said Jessie Zhao, director, Antiquorum Shanghai office.

Hua Kai, employed with Swiss watchmaker Blancpain, told China Daily that the price drop has encouraged many collectors to expand their collections.

Prices have certainly fallen from the highs of 2007 and early 2008, but pieces of great rarity continue to command high prices and will see strong demand in 2009, said Bourne.

"The limited supplies of antique and luxury watches have led to a steady value increase of 5 to 8 percent annually. Unlike other collections, their prices will not easily fluctuate as market changes from time to time," Hua said.

"Watches with special color or those in limited supply will get an extra added value," said Hua. According to him, the hand-made watches require complex craftsmanship, and in some cases, one craftsman may end up making only one watch in a year.

Watch collection is new in China, and there are fewer Rolex collectors than pocket watch fans, said Zhao. "There are many knock-off Rolexes in the market. Chinese watch collectors are inexperienced to tell the fake from the genuine ones and also Chinese people are not familiar with the history and varied lines of Rolex," Zhao said.

"As for the pocket watches, they are fewer in amount, decorated with painted enamels, stunning outlook, and have interesting stories behind them. Therefore, they've attracted a lot of buyers," he said.

The average price of a pocket watch varies quite a lot due to the varying nature of the piece from $1,000 to more than $10 million, Zhao said.

Watch and jewelry accounted for nearly $455 million in Christie's 2008 sales numbers. It showed that the two categories are still in a strong position with excellent growth potential.