Life on the Wrist

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The Real Return on Omega, Investing in Luxury Watches

Previously, we have looked at investing in Rolex watches and the types of returns one can expect based on historical performance of some of the more popular Rolex watches like the Submariner. Another favourite within watch collecting is Omega. Omega is also known for producing extremely high quality watches that can be a way to generate passive income. Omega has tremendous brand equity and is known by many, not just watch enthusiasts.

To look at some of their more popular models, the Omega Speedmaster is a great example. The Speedmaster below, with the caliber 861 movement, was originally $2,300 in 2009. Now, this same was sells for around $6,500 in 2021. This equates to a 182% return on your original investment, which if split out evenly over the 12 year time period, beats the average S&P returns of around 7-8%.

Another great model to look at is the very popular Omega Seamaster 300M reference 2541.80. In 2010, this watch would retail for around $1,000 on the secondhand market. Now, you can pick up a Seamaster for around $2,300 which is a huge 130% return.

To look at an example of a watch that has only been around for a few years, we will look at the Omega Seamaster Planet Ocean reference 215.30.40. Chrono24 tracks the price of this watch from 2016 when the watch was around $5,100. 5 years later, this watch is around $5,800. This is about a 14% return over the 5 year period.

We have spoken about this, but over the short term, speculating about watch prices is difficult to do. The Planet Ocean is a great example of how longer term investing in watches is probably the better path to go.

Enjoy!

Disclaimer: This is not investment advice and should not be used for investment purposes. You are responsible for doing your own research before investing in any asset.

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