Are luxury watches a piece of art, expensive hobby, investment, or its own asset class? It can be any OR all of the above!
Despite a major dip in the secondary watch market for the last ~2 years (-27% to -36% decline dependent on brand), as of today the return over the last 5 yrs for AP, Patek, and Rolex has been 65.5%, 53.3%, and 32%, respectively. That exceeds the return of the US stock market in many scenarios! Additionally: from the charts below it appears that the decline may be starting plateau.
Conclusion: YES, watches can be an asset class similar to stocks, bonds, or real estate.
