How to Buy a Watch at Auction 

The global watch market has witnessed a surge in interest, fueled in part by a redirection of disposable income towards tangible assets during the pandemic. This period saw a notable influx of younger collectors, drawn to watches not always for the purest appreciation of horological artistry, but sometimes for opportunistic investment. However, as the speculative fervor of the pandemic years begins to wane, a more grounded and passionate approach is re-emerging. Hess observes this shift with palpable relief, stating, "I think there’s a bit of a sigh of relief in the watch community that so much of the speculative buying that we saw during the pandemic era has largely dissipated. It became commonplace to see people buying more for investment than passion. We’re seeing very little of that now and it’s such a joy." This return to passion-driven collecting is signaling a healthier and more sustainable trajectory for the market.

The allure of acquiring a watch at auction, a venue often associated with art and rare collectibles, might seem counterintuitive for products that are commercially available and manufactured in large quantities across global hubs like Switzerland, Germany, and Japan. Yet, the discerning collector understands that the value lies not just in the brand or model, but in the nuanced details that differentiate pieces across various production eras. Iconic watches like the Rolex Submariner, in continuous production for over seven decades, or Omega’s Seamaster and Speedmaster, introduced in 1948 and 1957 respectively, exemplify this phenomenon. Collectors meticulously seek out subtle variations in dials, bezels, movements, and case designs – minute changes that can elevate a familiar reference into a genuinely rare and coveted artifact, thus driving the vintage watch market to extraordinary heights.

Beyond the realm of vintage timepieces, a parallel trend has seen collectors increasingly embrace high-end independent watchmakers. These artisans operate in small workshops, often with a handful of craftspeople, or in some instances, a single master watchmaker. This dedication to micro-manufacturing and artisanal craftsmanship resonates deeply with a segment of the market seeking a more personal connection to their timepieces. As Hess elaborates, "With this newfound heightened focus on independent watches, people aren’t buying for speculative reasons. Look at what happened with [independent makers] F.P. Journe and Rexhep Rexhepi and Simon Brette. People are buying these watches because they appreciate the craftsmanship, how movements are finished. They’re enjoying developing a relationship with the watchmaker and taking a deep dive as opposed to, ‘I’m going to buy the hype watch I saw on Instagram and flip it.’ As much as I love Rolex, I’m never going to meet the watchmaker that assembled my watch. It’s very unlikely that I’m going to be able to customize a dial in a way that you can with respect to an independent watchmaker." This direct engagement with the creator fosters a unique bond, transforming a watch from a mere object into a personal narrative.

The relationship extends beyond the watchmaker to the auction house itself, drawing parallels to the world of fine art collecting. Hess concurs that a well-informed buyer consistently enhances the acquisition experience. "The categories are similar in that these are expensive purchases – watches are growing more and more expensive as a category. And to some degree, the same lessons apply in that it’s helpful to have a relationship with a watch specialist. Auction houses are, in general, very happy to be transparent and share photographs and images and videos. I would certainly always suggest that somebody read the catalog, know what you’re buying. And I would also suggest that you do homework in advance. It helps to be educated." This emphasis on due diligence and expert guidance is paramount for collectors navigating the often complex and high-value world of watch auctions.

When considering which brands and specific pieces hold significant value today, Hess shifts the focus from purely historical vintage pieces to what he terms "neo-vintage" watches. This category, encompassing timepieces from the late 1980s to the early 2000s, particularly from esteemed brands like Rolex, Cartier, and Patek Philippe, is gaining considerable traction. Alongside these, high-end independent watchmakers continue to command significant attention. Hess notes, "I think there’s a heightened focus on independence and craftsmanship. A newer collector buying independent watches might be looking for the ‘rookie card’ of those brands, which may be why, with respect to F.P. Journe, for example, we’re seeing these enormous prices for very early examples – the souscription models or even brass-movement models. These are commanding a premium because I think they’re becoming the new aspirational pieces. They’re becoming a bit of a goalpost for a younger collector." This signifies a generational shift in collecting priorities, where early, foundational pieces from celebrated independent makers are becoming the ultimate acquisition goals.

For collectors with more substantial financial resources, perhaps those who have been in the market for some time or whose tastes lean towards classic aesthetics, the appeal of neo-vintage watches is equally strong. Hess observes, "This [emphasis on neo-vintage] doesn’t mean that prized vintage watches aren’t incredibly attractive and in demand. If Sotheby’s has a Patek Philippe ref. 2499 or a ref. 1518 perpetual calendar chronograph, there are going to be buyers. But we’re seeing more and more people attracted to this notion of neo-vintage sapphire-crystal watches and independents than we’ve seen in a long time. We’re seeing huge demand for [neo-vintage] ref. 3970s and 5004s. I’m seeing more people asking me for a 3970 now than an [older] 2499. It’s very interesting." The preference for the more contemporary sapphire crystal and the engineering advancements found in these neo-vintage references, coupled with the enduring allure of Patek Philippe’s iconic complications, creates a dynamic market where even historically significant models are now competing with newer, yet equally desirable, iterations.

Despite the intricate knowledge and significant sums often involved, Hess reassures prospective collectors that the watch auction environment is not as intimidating as it may seem. "I do think that the watch category in the auction experience may be a little bit more lighthearted," he shares. "Watches enjoy this great sense of community. There is absolutely no reason to be intimidated. And you’re much more likely to have an enjoyable experience if you’re relaxed about it." This sentiment is crucial, as the potential for six- and even seven-figure transactions can create an aura of exclusivity. However, Hess emphasizes that recognizing watches as both passion objects and valuable financial assets need not be mutually exclusive.

"These are certainly expensive assets in general," Hess acknowledges. "As a result, it’s very fair for a collector to ask: ‘If I need to sell it or I want to sell it – maybe I want to trade up – is there a market for it? Am I going to be able to sell? Is this a safe place to put money?’ I would submit unequivocally that they are. And that’s why when people ask me if it’s a bubble, I say I don’t think it is. I think it’s the beginning of something really amazing. I think we’re at the very early stage of a serious period of growth where more and more people are discovering watches." This optimistic outlook suggests that the current boom is not a fleeting trend but rather the nascent stage of a sustained appreciation for horology as a serious investment class, driven by an ever-expanding global community of passionate collectors. The enduring appeal of mechanical timepieces, coupled with their scarcity and historical significance, ensures their continued relevance and desirability in the decades to come.