Luxury watches a better investment than ISAs
Buying a luxury watch can be a better investment than sticking your cash in an ISA, a study has found.
Certain models of top brand Rolex have returned 400 per cent more than if the cash had been stuck in a tax-free ISA.
Some of the best investments are the Rolex Milgauss as spotted on stars such as Daniel Craig and Orlando Bloom.
The Rolex Submariner, worn by David Beckham and Johnny Depp, has also proved a good investment.
Researchers for www.luxewatches.co.uk compared the prices of seven different classic Rolex watches from 1969 with how much the models could be resold for now.
After applying inflation to the original prices, the study found that the timepieces could be sold for an average profit of £13,088.68.
This sum is 432.53% more than the £3,026.04 return on the same investment from a 4 per cent ISA over the same period.
The best return-on-investment came from the 1019 Milgauss with a profit of £21,675.57.
A 1969 Oyster Perpetual Day-Date Stainless Steel model gave a profit of £18,380.85.
Two of the watches studied, however, did not increase in value once inflation was taken into account.
This research comes after two Rolex watches were sold at auction for huge prices last month.
The first was a historic WWII Rolex that sold for over £160,000 in Bourne End after an original valuation of around £60,000.
Another rare Royal Navy Rolex sold for £120,000 after originally being valued at £50,000 to £70,000.
Jake Martin from Luxewatches.co.uk said: “Investors who know what they are doing when it comes to collecting and reselling classic timepieces can often make huge gains through carefully studying the market.
“For many classic watch owners, however, their collections are inspired more by their passion for beautifully crafted watches than speculation around which models are going to increase most in value.
“As with collecting classic cars or works of art, it is often wisest to invest in something you love.”
However, none of the timepieces listed above can top the Henry Grave’s Supercomplication - which sold for a record £15.1 MILLION at Sotheby’s in 2014.