Credits: Article and images by Bhanu Chopra @ Revolution Watch Magazine. See the original article here - https://revolutionwatch.com/getting-personal-with-ali-velshi/
You have had a long successful career as correspondent and as a host of business financial shows on television. What is your opinion on watches as an asset class?
I think of watches as an asset the way I think about art: buy it because you like it. Purely as an investment, there are more predictable and more liquid ways to invest. I think people should buy watches because they love them or are fascinated by them or think they look great. That there is the added benefit that they may appreciate in value, or that they may be passed on, is icing on top. There is certainly money to be made in speculating in watches, but speculating in anything should be left to experts. My watches are all items I get enjoyment from wearing. The fact they are all probably pretty good investments is secondary to me.
We noticed the speculation in sneakers as an investment several years ago, and that is still going strong. Do you think that watches have reached that level, and is the current level sustainable?
I don’t think things that behave like fads, or that are fueled by artificial supply constraints, have a long term future as investments, although there are many examples to the contrary (diamonds, Hermès Birkin bags). Sneakers are the modern day tulips; for a few years in the 17th century, tulips were more valuable than a mansion on the Grand Canal in Amsterdam. And even in 2022, there’s one born every minute. I’m waiting for someone to offer to sell an NFT of a Patek Philippe Calatrava. In fact, by the time this interview publishes, someone probably will have done so. And someone will have bought it. That said, the watch industry’s frequent “drops” and colorways are interesting and serve to get more buyers interested and involved. But I would be extremely cautious about investing in created, invented scarcity (which is what the sneaker industry has done), rather than in craftsmanship and durability.
What is your advice to young investors looking for that first vintage or modern timepiece as an investment?
The increasing allure of vintage “as-is’ watches is a great development. It makes old, banged-up watches (which all of mine will end up being) easier to acquire and more valuable over time. This is a great opportunity for a first-timer or early timepiece investor because suddenly there’s a lot more on the market that wouldn’t have been thought to be of value even a few years ago. It makes bargain-hunting for potentially valuable vintage watches interesting.
That said, it’s worth learning a bit about mechanical watches so that you can discern between a scratch-and- dent model of a beautiful watch and one that’s broken or damaged beyond expensive repair. It’s amazing what you can learn about watches on the Internet. As for modern, new watches, unless you want the specific watch or style, and aren’t concerned about appreciation, stay away from fads and au courant colors and shapes. Every season brings a new trend or theme, and some of them are truly stunning. True investments are not about stunning or current; they are about being able to stand the test of time.
Credits: Article and images by Bhanu Chopra @ Revolution Watch Magazine. See the original article here - https://revolutionwatch.com/getting-personal-with-ali-velshi/
