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Resale watch a dilute value PDF Print E-mail
Written by admin   
Friday, 16 June 2006
Watches can be a good investment--but not for everybody. One really important thing to remember, watches, like automobiles, normally lose value over time and are not good investments unless you really know a lot about the market and specific items you are investing in. For the average watch enthusiast, buying and selling of watches is usually at a loss. May be it make you or mar you. Most consider this simply the cost of owning the watch for the months or years they enjoy it. Do not be confused or misled by statements that certain watches have a 'higher resale value' than others.

So there is no magic formula for making money off of watches with high resale values. You should expect a watch that you will enjoy. If you think yourself likely to ever resell your watch, many factors that affect the resale value of a watch, some positively, but most negatively. If you do have a luxury watch that you wish to sell, there are several factors you need to keep in mind. The primary factors in why resale values vary among brands, models and individual pieces are:

The objectives of used watch buyers are somewhat different than for new watch buyers.

New watches are priced with 'exclusivity' premiums for certain luxury features.

Condition plays a major part of used watch values.

General interest and demand for specific brands and styles fluctuate.

1. Following the basic economic principle of supply and demand, anything people want but are hard to get, they will be willing to pay more for- rarity or exclusivity of a watch. Some Watchmakers occasionally developed "limited editions," often to celebrate some company anniversary, historic event, or to boost enthusiasm for a model line, such watches, too, enjoy a high resale value. If adequately limited to a small number, these have a very decent resale value later. In addition, people are willing to pay huge amount for watches that have belongs to glamour or celebrities All these watches needs features like active warranty and traceable personality, a watch whose warranty is still to expire also retains a considerable part of its value.

2. But sometimes companies dilute the value of such watches by selling them in bulk. In the process they lower the resale value of such watches. Some watchmakers release identical or similar models in quartz and mechanical movement versions. The finer brands usually add a moderate 'exclusivity' premium to the prices of their mechanical watches. At resale, the mechanical versions still command a premium over quartz counterparts. Also sometimes there are watches that sport ‘remarkable’ serial numbers, such as the date of manufacture of the watch or numbers with interesting patterns; while this adds a novelty interest to the watch, it does not do much for its resale price.

3. There are some other aspects that lose the most resale value on resale for instance, watches that are garnished with precious metals or stones usually depreciate over the years. Sometimes manufacturers come up with certain bottom of the line models, which may bear a premium brand name (such as Rolex) but do not command much. Last but not least the watches from which the serial numbers have been removed form the lowest rung of the resale ladder. Resale prices are usually based on the retail selling price, even when some discounts are customarily available.

 
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