One of Asia’s leading watch experts Su Jia Xian, better known as SJX, has joined WEALTH as a contributor. In his first column, he points out seven common mistakes of watch investing.
Just like any other forms of alternative investing, trying to make a profit from buying and selling timepieces is very difficult. Among the many reasons include the fact that the market is very opaque, prices are driven by tastes and fashion, and it is hard to predict what will be in demand next.
Another major cause is the fact that the watch industry does not mirror that of the stock market. Prices tend not to appreciate and depreciate quickly or consistently, and liquidity is low, to say the least.
Yet, it is undeniable that the last 10 years have been good for those who have parked their wealth in watches. Monitor the timepiece auctions and it is not uncommon to read about record-breaking prices.
But before you go out and part with your cash in exchange for that wrist accessory you are hoping will yield a good return, be mindful of these caveats.