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.
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London, UK, 10th September 2021– Wealthy people in the US and UK who have saved up money during the 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.”
Sonnenthal points out that a fine watch is inherently valuable, and that any fine watch owner should never feel rushed into a sale. He said: “If you have a fine watch that has inherent value. Forget about the fluctuation of the markets in the short term. If you focus on that you’re missing the bigger picture. In the long term, your fine watch will not decrease in value and is actually highly likely to increase in value.
“Every few years there’s a boom in the fine watch markets and people come to me for advice asking if they should sell. I always tell them to hold off. Do they really want to sell now or are they being tempted by a temporary increase in demand? Their watch will be worth even more in ten, twenty, or thirty years’ time, so why be pushed into a quick sale?”
Most fine watches are produced in small, never to be repeated batches. This means that a Rolex from 2015, for example, is only available to purchase second-hand. This scarcity means that fine watches increase in value literally from the moment they are bought. Indeed, there are fine watch dealers who make a living from buying exclusive timepieces and quickly selling them on for a profit.
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: “In my line of work I see these huge fine watch sales quite often. They all have one thing in common; the fine watch in question is always decades old. The auction market for fine watches really rewards collectors who sit on their investments for a long time, over collectors who look to make a quick sale whenever the market takes a turn for the better.
“So trust me, hold onto your fine watches. I would recommend holding onto a Rolex, or another watch of similar quality, for at least ten to twenty years before making a sale. Whether the watch market is good or not when you go to sell, your timepiece will be worth far, far more than what you paid for it.
“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 the Director and Founder of New Bond Street Pawnbrokers, a luxury pawnbroker based in London’s famous Mayfair. He 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.
About New Bond Street Pawnbrokers: New Bond Street Pawnbrokers is the UK’s leading luxury pawnbroker and has won numerous awards. It has won awards at the 2019 National Pawnbroking Association Awards, the 2020 Credit Awards by Experian, the 2020 UK Digital Growth Awards, the 2019 UK Business Awards, and over 30 other awards and nominations since 2019.
New Bond Street Pawnbrokers
5 Blenheim Street, Mayfair, London W1S 1LD
020 7493 0385