Hello everybody, this is Kai again from TenPastTen and welcome to my new video I often get the same question in my comments and from my friends if you can make constant and high returns with watches and that is why I picked 5 great examples in which specific watches increased up to 150% in value After those 5 examples I will mention important facts many tend to forget or overlook And right at the end I will tell you what I personally think about watches as an investment If you want to know more about luxury watches go ahead and subscribe to my channle and hit the notification bell below to never miss a new video Every Sunday, we upload a new video about luxury watches and the watch industry in German(with English subtitles) and in top quality! And if you want to let your friends know more about watches as an investment feel free to share this video! The first watch we have picked is the Rolex Daytona with the ceramic bezel Ref No 16500LN And yes, “Daytona” I am trying (to pronounce it correctly) This one is actually the one with the biggest return compared to the initial investment needed plus the one with the biggest increase in value over a relatively short period of time Those who purchased their Daytona after its release in June/ July of 2016 for its RRP of 11.300,-€ were able to resell it for 15.000,-€ which generated an immediate increase in value of 33% Those who buy the Daytona for its RRP today or those who did not sell them at the time today would get 19.000,-€ easily (pre-owned) or over 20.000,-€ if in excellent condition This makes an increase in value of about 68& in 2.75 years or respectively 20% each year It needs to be said that the version with the black dial holds a bit more value than the Daytona with the black dial even though they share the same RRP We continue with the iconic Royal Oak Ref. No. 15400 A thing to note here: The RRP of 17.900,-€ is still a losing deal as pre-owned watches sell for 16.00,-€ But the market price of these watches has increased quiet impressively Those who bought a pre-owned watch in 2016 had to pay around 11.800,-€ on the grey market and will get the, as said before, 16.000,-€ when deciding to sell today which makes an increase in value of 36% in 3 years or respectively 10% each year Another incredible increase in value can be seen in the Rolex Submariner 11610LV, also called “Hulk” The one which I am currently wearing by the way A friend of mine who is trading on the grey market told me that he used to have 4 Hulks in his safe a couple of years ago and that he was worried that he is not going to sell them At the beginning of 2014 this watch was traded for around 6.500,-€ compared to the RRP of 8.200,-€ Therefore making it a good deal only when buying pre-owned But today you are making an incredibly good deal in case you are able to buy it for the RRP Market value increase to 12.000,-€ pre-owned mark you! New, this watch is being traded online for around 13.000,-€ An immediate return of 46% for a pre-owned model Even models from 2014 are valued at around 11.500 to 12.000,-€ Those who paid 6500,-€ in 2014 has a return of up to 77% in 5 years making it 12% each year The biggest increase in value has happened in the past 12 months Making it an increase in value of44% But the catch here is, that is something I am going to talk about in a second Because now we are going to continue with the Rolex Datejust 16013 This is more of a long-term perspective and not the biggest increase in value but a really interesting example nonetheless By accident a good friend of mine had asked me about the value of this watch because he found it at home A Datejust 1603 from 1990 The reason why this example is so interesting is because usually, a Datejust is not something you would expect to increase in value In the 1990s the owner paid 2.900,-DM because he got a discount from the RRP of 3250,- DM Today, those 2.900,-DM a total of 2.400,-€ inflation-adjusted Today, you can find the Datejust online for about 4000,- to 5000,-€ Even if you deduct a margin of around 10% we get a value of roughly 3.600 to 4.500,-€ which makes a return of 50% within 29 years, respectively 1,5% each year In the worst case and inflation-adjusted or 3% without the inflation adjustment At the end we are taking a look at the most impressive example regardless of its high RRP We are talking about the Patek Phillippe Nautilus 5711 The RRP of this watch was at 22.344,-€ up until 2017 In 2014, pre-owned this watch was available for around 20.000,-€ Today, the situation has completely changed For those who want to own a new Nautilus has to pay at least 55.000,-€ on the free market Those who bought the watch pre-owned back in the day can sell it for around 50.000,-€ therefore making it a return of up to 150% within 5 years or respectively 20% each year Patek Phillipe also noticed the increase and increased the RRP last year for 20% making it 26.810,-€ in total For those who are able to buy this watch for the mentioned RRP can resell it for 55.000,-€ today making it an immediate return of incredible 105%! Okay, perhaps many of you might think “Ok great, lets go and buy watches to make a lot of money really fast and easy” right? But unfortunately I have to stop you there because I will tell you 4 facts, most people tend to forget or overlook completely No.1 Long waiting lists are not considered Right the, the watch business booms and the values and prices of watches are through the roof And I believe that a couple of years ago, no one would have really expected that But lets be real for a second No one can say what will happen in 20 or 30 years time It is the same for the property market but I think that people rather rely on property than on watches when the economy slows down or crashes entirely No. 2: You have to get your hands on a watch for RRP first Rolex, Audemars Piguet or Patek Phillippe retailer do not get a huge amount of units of those popular models but only very few watches that is also how and why those prices even exist That means: If you want to get your hands on those watches you will need not only a good relationship with your AD but guess what: the good relationship ends as soon as you flip the watch right after buying it Making it not a very sustainable business model Tips on how to get your favorite watch as a real watch enthusiast can be found in the video recommendation up here No.3: You really have to know the watch industry! No one can predict the future but especially with watches you really have to know the industry ro really play successfully on the market Because, as I have explained before, resellers do not get their watches ” easily like that” for RRP Therefore you should not even try and rather turn to ETFs or property No. 4: Do not forget the revision cost! Your return on investment can increase drastically if you do not look after the watch properly Usually, a Rolex needs a revision after about 7-10 years but this can cost around 500 to 1000,-€ Patek Phillippe and Audemars Piguet are even more expensive Those revisions do increase the value but if you do not look after your watch a revision could cost you a couple of thousands which will definitely hurt your return on investment Regarding the proper care for your watch and revision I will put out a video soon! As promised in the beginning, I will let you know what I think about watches as an investment To keep it short: If you want to invest money look for something else to invest in Below the line, there are many other and especially easier options to invest your money in with less initial investment needed To me, those watches hold more of an emotional value They remind me of my milestones and goals and those which I have already reached It is an additional bonus to know, that I have not “burned” any money with it, on the contrary I even made some profit By the way, the watches that I did not like that much I have sold in order to finance new watches But in case I had to sell the watches for an emergency the emotional loss would be far greater than the financial gain But know I would like to hear from you What do you think about watches as an investment? Did you make different experiences? Let me know in the comments down below if you like the video and you want to see more go ahead and give me a thumbs-up, subscribe to my channel But for now I wish you all a wonderful day and I will see you in the next video, bye!