This is Why I Won't Buy Luxury Watches Anymore

Summary

In this video, a seasoned watch collector explains why he hasn't purchased a luxury watch in three years. He highlights rising prices, particularly for brands like Rolex, which have seen significant inflation despite their historical value. He discusses the high costs of maintenance, the availability of quality alternatives at lower prices, and diminishing returns on luxury watches. The collector emphasizes that personal enjoyment often comes more from affordable pieces rather than expensive ones, as higher-value watches can lead to anxiety about theft. Ultimately, he advocates for a greater appreciation of entry-level watches that provide better enjoyment-to-price ratios.

Takeaways

• 😀 Luxury watches have dramatically increased in price, often far exceeding their inflation-adjusted value.
• 😀 The cost of servicing luxury watches can be high, with basic services reaching around $800.
• 😀 There are high-quality homage watches available at significantly lower prices, making luxury brands less appealing.
• 😀 Brands like Seiko and Orient offer excellent craftsmanship, sometimes rivaling luxury Swiss watches.
• 😀 The resale value of luxury watches is diminishing, making them less of a sound investment.
• 😀 Enjoyment of a watch often does not correlate with its price; more affordable watches can provide greater satisfaction.
• 😀 Concerns about theft and safety can detract from the pleasure of wearing expensive watches.
• 😀 The speaker believes that the enjoyment-to-price ratio is higher for affordable watches.
• 😀 The perception of brand name heavily influences the luxury watch market.
• 😀 The speaker has shifted their focus toward entry-level watches that offer high quality and enjoyment at lower costs.

Q & A

What is the main reason the speaker has not purchased a luxury watch in three years?

The speaker believes luxury watches are becoming excessively expensive and no longer provide value for money.

How much has the price of the Rolex Submariner increased since its release in 1953?

The price of the Rolex Submariner has risen from $125 in 1953 to approximately $9,100 today, which is about seven times its inflation-adjusted price.

What does the speaker say about the cost of maintaining luxury watches?

Maintaining luxury watches like Rolex can be expensive, with basic servicing costs around $800, which adds up significantly if you own multiple watches.

What alternatives does the speaker suggest for luxury watches?

The speaker recommends considering homage watches, such as San Martin, or reputable brands like Seiko and Orient, which offer high quality at lower prices.

What is the speaker's view on the resale value of luxury watches?

The speaker suggests that the resale value of luxury watches is diminishing, especially as servicing costs must be factored into the overall expense.

How does the speaker compare the enjoyment of luxury watches to more affordable options?

The speaker argues that the enjoyment-to-price ratio is often higher for more affordable watches, as they can bring just as much joy without the anxiety of potential theft.

What concerns does the speaker have about wearing expensive watches?

The speaker expresses anxiety about being robbed when wearing expensive watches, which detracts from the enjoyment of owning them.

What does the speaker think about the trend of luxury watches being marketed as luxury goods?

The speaker believes that Swiss watches, once seen as well-made tools, are increasingly being positioned as luxury items, which contributes to their rising prices.

How does the speaker perceive the movement quality in lower-priced watches compared to luxury watches?

While acknowledging that there is a significant gap in movement quality, the speaker notes that many lower-priced watches are improving rapidly and can still offer great value.

What is the speaker's overall stance on luxury watch collecting?

The speaker is currently skeptical about the value of luxury watch collecting, suggesting that enjoyment and financial return are diminishing and recommending more affordable options instead.