Watches. They’re far more than just timekeepers. They’re wearable art; crafted masterpieces that blend heritage, engineering, and elegance. But more recently, they’ve been catching the eye of a different kind of connoisseur: the savvy investor.
Over the past decade, luxury watches have proven themselves not just as icons of status and style, but as promising investment vehicles. According to the 2025 Knight Frank Wealth Report, they’ve delivered an impressive 125.1% return over ten years – second only to fine wine. But unlike wine, which is prone to volatility and niche appeal, luxury watches offer something more enduring: stability.
Luxury Watches: Leading the Pack
While Knight Frank’s broader Luxury Investment Index (KFLII) fell by 3.3% in 2024, luxury watches stood firm, appreciating by 1.7%. Over the past five years, the KFLII gained 21.4%, whereas luxury watches surged 52.7%. Across the last decade the index rose 72.6%, while watches clocked a 125.1% gain. It’s a consistent story of outperformance.
And it’s not just about returns, it’s about risk too. According to Time is Money: An Investment in Luxury Watches, this asset class has lower annual volatility than stocks, bonds, and even real estate.
The Watch vs. The World
In fact, some timepieces are starting to challenge traditional asset classes. Brands like Audemars Piguet and Patek Philippe have posted annual returns that nearly rival the MSCI World Index, which tracks global mid-to-large-cap stocks. Meanwhile, Japanese craftsmanship is being recognised with a vintage diver quadrupling in value over 12 years and the Grand Seiko ‘Snowflake’ SBGA011, maintaining a consistent annual growth rate of 5–6%, according to the 2025 Value Watch Index.
What is causing this persistent drive in the watch market?
There are a number of reasons. Family offices, for example, are focused on increasing their diversification, and watches fit the bill, and ultra-high net worth individuals (UHNWIs), a group that is growing at around 5% per annum in North America and Asia, are also showing an interest in luxury timepieces. Meanwhile, wealthy younger buyers are increasingly comfortable making luxury purchases online which will undoubtedly add extra fuel to the fire that is driving the luxury watch market.
Insuring Your Luxury Watch
As luxury watches appreciate, the importance of specialist insurance grows alongside. KoverNow provides tailored digital insurance solutions specifically designed to protect valuable timepieces and utilizes market-tested data to offer instant valuations and reasonable premiums within its mobile app, ensuring customers’ investments remain secure.
