High-end pawnbroker urges caution in post-pandemic fine watch sales rush
In a recent article David Sonnenthal, Director and Founder of luxury pawn shop New Bond Street Pawnbrokers, is urging owners of fine watches to resist the urge to sell their assets.
Wealthy people in the US and UK who have saved up money during the COVID-19 pandemic are snapping up fine watches at an alarming rate. Because of this, many watch owners are rushing to cash in, but Sonnenthal is urging caution.
David Sonnenthal said: "History shows us that in times of crisis the watch market appreciates. That's what we're seeing now, which is causing so many people to cash in. However, a fine watch - such as a Rolex - is a sound investment that will only increase in value over time, regardless of the fluctuation of the market.
"So, while your Rolex or Patek Philippe may be worth more now than it was a year ago if you keep it in good condition and try and sell it in 10 years' time, it'll be worth even more. Wait another 10 years, and you'll be looking at an even bigger windfall. It's important to think about your luxury investments in the long-term, rather than as a way of making a quick buck."
Therefore, if you own a fine watch that's in good condition, its value can only go one way - up. Additionally, the longer you hold on to a fine watch, the more you can expect to get for it if you decide to sell. Last year, a US veteran went to get his Rolex Daytona valued only to find out that it had been made in 1971, and was therefore worth $700,000. Similarly, a Rolex Submariner purchased for less than £100 in Doncaster in the 1960s recently sold for £80,000.
David Sonnenthal said: "There is no single stock of watches throughout the world since people have purchased watches individually on the private market. These are uncharted waters and somewhere along the line you may need a rubber ring for help - you need to hold tight!"
David Sonnenthal is a fine watch expert with more than 20 years of experience in luxury asset management, and was one of the main dealers on Channel 4's award-winning programme 'Four Rooms'.
In David's experience most people pawn their watch as the fair interest rates allow them to keep hold of their watch while unlocking its financial potential in the short term.
New Bond Street Pawnbrokers is UK's leading luxury pawnbroker and has won numerous awards.