What Makes Watches Lose Value?

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What Makes Watches Lose Value? | The Classroom

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The 1916 Company

Күн бұрын

The pre-owned market is tricky, price fluctuations happen all the time and isn't always easy to predict. But what makes watches trend downwards in value between the retail and pre-owned market? Is there a way to tell what is going to decrease in value versus hot watches that only gain?
Well we brought in one of WatchBox's traders to try and explain what happens when a watch loses value, so Armand Johnston is here to help! Whether it be trends, limited editions, or lack of versatility, Armand tries to break down all the factors for your future watch purchases!
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Пікірлер: 77

@pilotstyle123 5 жыл бұрын

The content 10/10 the mustach 1980/10

@infinati 5 жыл бұрын

I was in the Lange AD last week and I couldn't help but think to myself "If I buy one of these it will lose a ton of value the moment I step out the door." Browsed the watchbox app afterwards instead 🤣

@mstelios4259 4 жыл бұрын

Companies like Lange and Breguet make watches for real watch lovers who appreciate a well made watch and not for speculants.

@infinati 4 жыл бұрын

@@mstelios4259 You are more than welcome to buy a Lange or Breguet new, and cherish the memory as you like. Meanwhile I can buy one on the secondhand market, as good as new, and save myself a lot of money.

@gpearce11 5 жыл бұрын

The fact that watches lose value on resale shouldn’t be unusual. This happens to literally every product. Regular production models of anything should always sell less second hand than they do new. Some brands and models will always hold value better than others, based on popularity, quality and scarcity, but nothing that can (relatively) easily be bought new should be worth more at resale. The only exceptions should be very limited editions or rare models. If you buy a new car, the moment you drive it off the lot it loses at least 15%, which is normal, and doesn’t stop people buying them. The only examples that don’t are either exotic cars in limited numbers (i.e. Ferrari Enzo limited to 499 pieces, selling for triple retail at auction), or vintage cars that are rare as a result (i.e. Ferrari 250 GTB selling for $32M, because only a few still exist). Watches should be the same, which is why limited editions, rare vintage pieces, or new, yet heavily waitlisted watches should (and do) resell over retail. This is why the resale price of the Nautilus, Submariner, or Daytona annoy and confuse me, because none of this applies. They’re all models that have been in production for years (sometimes decades), with accompanying ups and downs in resale popularity (the Nautilus sold for 70-80% resale just 4 years ago), yet suddenly they’re all worth crazy amounts for no good reason. When the ceramic Pepsi GMT dropped, the accompanying wait list ensured it would be worth at least 150%+ on resale, but the current Daytona is a decade old now, so there is no reason for it to be suddenly worth 150%+ as well.

@Mister_Phafanapolis 5 жыл бұрын

Despite repeating the mantra "buy what you love," watch guys really are just a herd of lemmings chasing after what they're told is cool. They have no tastes of their own. If they did you wouldn't see the same dozen models come up over and over again.

@alexp3752 5 жыл бұрын

Excellent analysis. Thank you.

@alexp3752 5 жыл бұрын

Respectfully, your statement is not entirely true if a person is a long time, veteran enthusiast. "Buy what you love" is the most important portion of the watch purchasing decision. This is especially true for a special piece that you expect to keep for your entire lifetime. Emotion certainly is a key part of the fun. While in college, I found my favorite brand and style of fine, handcrafted watch. I saved up for years to acquire one. And most importantly, I know the people (and family) who made it. That again, is part of the experience. Although I have sold a few pieces in the past, my keepers are for keeps! Trends don't matter to me, and neither does "resale value". Frankly, I wouldn't part with my 8 key watches for any amount of money! That's why you should only buy what you love if at all possible. Thanks. @@Mister_Phafanapolis

@Mister_Phafanapolis 5 жыл бұрын

@@alexp3752 There's a difference between buying watches for your own personal enjoyment and buying what the internet tells you to. Seems like everybody's collection *must* include a Rolex DateJust, Submariner, GMT, an Omega Speedmaster, a Nautilus, a Royal Oak. All I hear discussed on forums or groups is Rolx. Rolex. Rolex. It's boring. It's off putting. It's not interesting. Fifteen years ago everybody was gaga over Panerai and now if you ask about them they're "dead". These people trend and follow like sheep. There are a few taste makers, a lot of follow-the-leaders and then there are the guys on the outside who "buy what they love" and don't get involved with these lame dorks. They're the ones who have their own tastes and opinions and aren't afraid to act on them. One of my least favorite parts of this hobby/interest are the other guys who are in to it as well.

@jumboJetPilot 5 жыл бұрын

Spot on Geoffrey! I remember when I was a kid, I was the only one in my circle of friends who didn’t trade baseball cards. I actually had the gall to ask what was driving the daily trading prices of these cards as they didn’t conveniently fall into a supply and demand curve when virtually none in circulation were scarce or limited editions. Other kids would look at printed media every day to see what their collection was worth. It made no sense to me how Topps was deriving these prices almost like stocks in the market. Then, suddenly in the mid-1990’s, that stack of cards came tumbling down (pardon the pun), and they became practically valueless. I saw that one coming long before my friends did!

@matthewhoover6154 5 жыл бұрын

After regretting two of the first 3 watches I purchased, I decided to only buy watches that I like, which are either historic or iconic, or that I know I will like so much that I won't want to sell them because I will wear them a lot.

@rrazvanrr 3 жыл бұрын

We need more Armand on Watchbox!

@tomkhong9828 5 жыл бұрын

My favourite video of the month . Fantastic analysis !

@stevenuk 5 жыл бұрын

excellent... I must admit the moment I hear "limited edition" I do tend to zone out rather than engage, I think it really has been over played. Also it does seem that all brands owned by Richemont just seem to not be doing well, I could be wrong..

@jumboJetPilot 5 жыл бұрын

steven uk1 Amen to that! The phrase “limited edition” has more than worn out its welcome in the watch world.

@gpearce11 5 жыл бұрын

I find it can very much depend on how limited it is. For example, Omega released 2 different limited edition 50th anniversary moon landing Speedmaster Professionals, one gold and one steel. This was expected, and not necessarily unwelcome (Releasing at least half a dozen Olympic special edition every four years, less so). The only problem is, they’re “limited” to 1069 and 6969 pieces respectively. That is barely limited for the gold version, and is basically a standard production run for the steel, which means that despite being excellent, and limited, watches, there are no wait lists, and no clamouring resale market. Omega should have limited the gold version to 169, or even just 69, and the steel to 1969 (an even more fitting figure than the one chosen), then people would be much more interested. It’s simple economics, if you want something to stay in demand, don’t over supply. I’ve never understood why Omega doesn’t understand this.

@oxysoxos 5 жыл бұрын

The classroom series is a true winner.

@stevenuk 4 жыл бұрын

excellent content here, very good explanation.

@chrisdavis9063 5 жыл бұрын

Holy Moses! The partition in that stache!

@chrisdavis9063 5 жыл бұрын

He’s right about Breguet

@dragonmaster7841 5 жыл бұрын

“What makes watches lose value?” When it has Panerai printed on the dial.

@jigd0471 5 жыл бұрын

Don’t buy watches and you will never loose money

@rogerparis 5 жыл бұрын

Excellent topic and very well said.

@dannysimenauer5745 3 жыл бұрын

Very informative

@jamesarthur6962 5 жыл бұрын

Great advice, loved this CLASSROOM...but I am still a BIG WATCH style collector so with prices going down that is good news to my ears it means I can buy more oversized pieces to enjoy. Keep up the good work with these CLASSROOMS & always #KeepMovingForward

@keekeefries6298 5 жыл бұрын

Great Video from a new face from WatchBox! This guy needs to get his own spot on the nightly line up!

@kevinparkinson8375 3 жыл бұрын

Fantastic channel 👍👍👍

@EgdeFilms 5 жыл бұрын

I like this guy. Great info. Thanks.

@FALLERModellbau 5 жыл бұрын

Ok we need more videos with Armand! Put him on the Trading Desk! Or better yet, give him his own show!

@BenTramer 5 жыл бұрын

This. Add him in with Jason on the Trading Desk,. Perfect.

@bubbab7792 5 жыл бұрын

Good segment good information 👍. Appearance? Trim🤔🤔🤔 up that stache. 👍 Whoa!

@ihabkahnung 5 жыл бұрын

Content and presentation: flawless as ever. Animations a tad cheesy imho. AND BRING BACK THE CHAIR!

@MrJamesDuffy 5 жыл бұрын

All y'all seeing the mustache when that unbuttoned shirt sneaks in through back door to see our wives and mothers and selling them luxury watches. Great video.

@luckygoldpanda 5 жыл бұрын

More Armand , great video

@zoltanfarkas320 5 жыл бұрын

Absolutely spot on. Nice character, super content, great vid

@austinjones8701 5 жыл бұрын

Zoltan Farkas tell that to my $6200 2014 submariner 😂

@paulbooth331 3 жыл бұрын

Why is the Vacheron American 1921 sooo cheap, saw one for £13,000 pounds today... the price of a Hulk?

@alexp3752 5 жыл бұрын

Any item or artifact's "value" is usually determined by market supply and demand that determines the price. However, the perception of value is entirely subjective and up to the individual person. Just because a watch holds a certain perceived value does not make it any less or more desirable. It all comes down to psychology and personal preference. I never buy a watch with the idea of selling it later on down the line. Over decades, I bought my watches to keep and enjoy them. Simple.

@suncity22001 5 жыл бұрын

I said it before and ill say it again, Breguet watches do not get the love they deserve.

@suncity22001 3 жыл бұрын

@@cattnipp too skint

@simonw2750 5 жыл бұрын

Very interesting.

@chrislowe5462 5 жыл бұрын

Great content as always guys .

@ErikS- 5 жыл бұрын

What about the “Gerald Genta”-effect. We see it with the nautilus, royal oak, ...

@Zygotepro Жыл бұрын

great advice. not so great mustache

@yourviewer6974 5 жыл бұрын

Imho, the only problem with the aqua terra line is that small date window.. And limited editions = marketing gimmick

@jasonmane8847 5 жыл бұрын

Great Job Bud 👊

@TheOfficialRandomGuy 4 жыл бұрын

I honestly thought he was going to say Omega.

@abmorose6531 5 жыл бұрын

Aha... i shall get you ! said the man with the pencil thin moustache

@marcel9688 5 жыл бұрын

Is it even a real one 🤔

@mstelios4259 4 жыл бұрын

Couldn't be more wrong about Breguet!

@bokai5829 5 жыл бұрын

It is only fitting for someone with your mustasche to wear a breguet!

@jigd0471 5 жыл бұрын

Is the Pontiff right?... Rowleks Rowleks Rowleks.?.. I dont want to belief its all true

@algorithm007ify 5 жыл бұрын

The answer is usually market ignorance...

@gpearce11 5 жыл бұрын

Watch Aficionado Exactly. That’s why there are only a couple of brands that have high resale, because only a couple of brands can remain the public’s consciousness. For example, if you asked a random person off the street who makes the best, or most expensive, watches, most of them will say Rolex, because it’s literally the ONLY luxury watch brand they know. This is why the brand is so hyped, because it’s the only luxury brand that people that know nothing about watches buy, for no other reason that it says Rolex on the dial. It’s also why many “recently wealthy” people are willing to overpay for their Sub or Daytona, because they want a Rolex, and they want it now. This is also why the Royal Oak has suddenly become more popular as well. A lot of famous “baller” personalities (musicians, sport stars, etc) have started wearing them as an alternative to Rolex (esp. gold Rolex), and the public has just blindly followed them.

@jumboJetPilot 5 жыл бұрын

No kidding!!! At any pricing echelon there are far higher quality models than any model from Rolex, PP, or AP yet so called “enthusiasts” don’t bother to look over the horizon and will form their biases and silly justifications as to why they only buy the aforementioned. So in other words they cave to the market bandwagon, in essence buying what others think they should buy rather than what they themselves would actually buy if you scratched the brand names off the dials. PP, Rolex, AP, and a tiny select other makers are perfect for those who think they know a lot about watches.

@HelloJP-p7n 5 жыл бұрын

The actual title should be "What Makes every Swatch Group Watches Lose Value?"

@mohamedalketbi2326 5 жыл бұрын

Jevon Png and that is good for people who love breguet , they can afford it.

@AndrewDeme 5 жыл бұрын

This is why Casio has and will continue to sell G-Shocks....ultimate Beach to Boardroom

@PrimedProductions 5 жыл бұрын

Not sure many executives wear a g shock in the boardroom

@AndrewDeme 5 жыл бұрын

Primed Productions Only the super cool ones...

@AndrewDeme 5 жыл бұрын

Mark Michael and this is exactly why my favourite watch is a Casio....

@collectableinvestor 5 жыл бұрын

Disagree that larger watches aren't in. The AP Offshore is very much in demand.

@diegoog3654 5 жыл бұрын

not as much as it used to be.

@collectableinvestor 5 жыл бұрын

Diego OG Possibly, but I have a bunch of friends that buy luxury watches (incl myself), they ALL want larger watches.

@collectableinvestor 5 жыл бұрын

Diego OG They believe 40mm is a bit too small. They want 42-44mm watches.

@algorithm007ify 5 жыл бұрын

Panerai are still semi-trendy..definitely not as trendy as before but too undesirable..

@collectableinvestor 5 жыл бұрын

Watch Aficionado Since we’re on the topic of watches holding value, and since those are the ones I purchase mainly, I’m referring to 3 brands... Patek. Rolex. AP.

@mohamedalketbi2326 5 жыл бұрын

Hora mundi is an art piece and beautiful

@Mister_Phafanapolis 5 жыл бұрын

Thumbs down for saying the Breitling Emergency 2 is a "really cool watch." It's only cool if you're the type of dork that carries a ferro rod on their keychain and a paracord bracelet on their other wrist. Also, this guy has a *terrible* cat fish whisker-like mustache.

@gpearce11 5 жыл бұрын

Phafanapolis It’s really cool, in theory (and only in theory). After all, it’s the only watch that can accurately claim to have saved lives, which is awesome. However, I don’t think I know anyone that sees it as anything other than a really cool novelty, instead of a really cool watch they would actually wear. And I think that was his point. By certain metrics, it is definitely a “really cool watch”, but it’s not one that anyone actually wants to wear, so there’s no demand for it. As a result, it sells cheap at resale.