The best watches to flip for beginners are:
Watch enthusiast, Phil Reid claims to make $10,000 a week by selling Rolex watches. He started with an initial investment of $5,000 and used this to purchase a few high-quality watches. Phil was great at spotting in-demand watches that had the potential to appreciate. He prioritized limited editions that typically hold or increase in value. He closely monitored market trends and sold the watches when the demand was high. Phil sold over $15,000 worth of watches for over 6 months. After subtracting his $5K initial investment, he made a $10K profit over that period.
However, not everyone thinks watch flipping is a good business. This Reddit commenter said the business is very dependent on third-party service providers. You’re always at the mercy of the watchmaker’s time and expertise. The inability to operate the business on your terms makes the business model harder than it seems.
This article discusses the best watches to flip for beginners exploring the watch market. It will give you an insight into the watches to pick and the ones you should avoid. The factors that affect the watch’s value, the steps for buying your first luxury watch, and the risks of this business are also covered in this article.
Best Watches to Flip For Beginners
- Hublot: Models like Big Bang, Aero Classic, and Classic Fusion are popular and stable in the secondary market. Focus on flipping 44 or 45-mm sizes. Hublot Big Bang models have increased by 5% every year in the last 5 years. It’s a practical investment for new watch flippers.
- Ulysse Nardin (UN): Go for older models like the Marine Chronometer 43mm. The new Freak line is also highly sought after. Some Ulysse Nardin Freak models appreciated by as much as 15% in 2022.
- Cartier: Skeleton, Roadster, and Santos are great watches for flipping. These models are very popular and stable. The Cartier Santos model steadily increases by 7% every year, according to WatchPro.
- Panerai: 1950 casing models have shown great trade performance in the secondary market. Some enthusiasts estimate it retains up to 85% of its value.
- Panerai: 1950 casing models have shown great trade performance in the secondary market. Some enthusiasts estimate it retains up to 85% of its value.
- Seiko SKX Series: These watches are affordable, iconic, and known for their durability. The Seiko SKX007’s value increased by 10% since its production was discontinued in 2019.
- Omega Speedmaster: It’s the first watch on the moon. Omega Speedmaster is a sought-after timepiece because of its rich history. It appreciates by 8% every year.
- TAG Heuer Carrera: This watch is a safe choice for watch-flipping. Its racing heritage and stylish design make it a popular choice among collectors. Collects estimate that it retains around 75% of its original value.
- Tudor Black Bay: It’s a subsidiary of Rolex offered at a more affordable price point. Its superb quality and association with Rolex make it a safe choice for beginners. Its Black Bay Fifty-Eight model is a popular collector’s item. Tudor Black Bay appreciates by around 5% annually.
What Watches Are Not The Best Choice For Beginners?
High-end brands like Audemars Piguet (AP), Richard Mille (RM), Patek Philippe, Rolex, and Vacheron Constantin may not be the best choice for beginners. These watch models are very volatile. Flippers should have more knowledge and experience with watch flipping when dealing with these watches.
The Audemars Piguet Royal Oak Offshore can fluctuate up to 20% within a year. Richard Mille watches are expensive and volatile. Some models appreciate by 30% over a short period while others depreciate just as quickly. Patek Philippe's Nautilus, particularly the Ref. 5711 had a dramatic 50% price surged since it discontinued production in 2021. The watch market is so dynamic. Flippers should have a deeper understanding of market trends and price movement history before jumping in.
What are the Factors That Determine the Watch’s Value?
- Brand and Model: Watches from renowned brands like Rolex, Patek Philippe, and Audemars Piguet (especially limited editions) have a higher resale value. For instance, a Rolex Daytona "Paul Newman" sold for a record $17.8 million in 2017. This proves that popular models can sell high.
- Condition: The condition of the watch affects its resale value. This includes the presence of scratches, dents, or any signs of wear. According to WatchBox, watches in mint condition can sell up to 30% more than those with visible wear and tear.
- Original Parts and Papers: The original box, papers, and all original parts (including the bracelet, clasp, and dial) add to the watch’s value. Chrono24 found that watches with original papers and boxes can sell for up to 20% more than those without.
- Age and Rareness: Vintage and rare watches often have higher resale values, especially if they are well-preserved. Collectors are willing to pay more for watches that are hard to find. For example, a Patek Philippe Ref. 1518 in stainless steel, one of only four, was sold for over $11 million in 2016.
- Market Demand: The current market demand for specific brands, models, or styles can influence resale value. Trending watches usually sell for more. Rolex and Audemars Piguet have increased demand in the secondary market.
- Service History: A documented service history from authorized service centers assures buyers that the watch is in excellent condition. This boosts the watch’s resale value. According to WatchPro, watches with a complete service history have 15% higher prices.
- Materials: Watches made from precious metals (like gold or platinum) or those with diamond embellishments have higher intrinsic value. A gold Rolex Submariner is 50% more expensive than its stainless steel counterpart.
- Movement: Watches with complex mechanisms like chronographs, perpetual, and tourbillons have higher resale value. Watches with tourbillon movement are 40% more expensive than those with standard movements.
- Provenance: Watches previously owned by personalities and celebrities are more expensive than regular ones. A Rolex GMT-Master owned by Marlon Brando sold for $1.95 million in 2019. It’s significantly higher than the typical market value for that model.
- Limited Editions: Limited edition watches with unique features have a higher value than standard ones. Omega Speedmaster’s "Snoopy Award" limited edition increased by over 200% within a year of its release.
Why Should Beginners Start With Watches That Are Less Than $10K?
Beginners should start with watches worth less than $10K to limit the financial risk. Watches under $10k are generally affordable, so you don’t lose so much money in case you can’t sell it. Watches in this price range also have a bigger buyer base. This means you have more potential buyers who can afford your items. Affordable watches let beginners gain experience in the nuances of the watch market. They can observe the pricing, authentication process, and market trends without the high stakes. Beginners are prone to making mistakes as they learn. These mistakes are less expensive when you’re dealing with lower-end watches. Watch collector and flipping coach Pejman Ghadimi believes in this strategy. By starting with watches less than $10K, flippers can slowly build their margins without being affected by the market's fluctuations.
Step-By-Step Process on How To Buy Your First Luxury Watch
- Set a Budget: Decide how much you're willing to spend on your first luxury watch. Include the cost of insurance, maintenance, and servicing.
- Research Different Brands and Models: Think about the style, brand, and features you like in a watch. Research the specific model and year. Pay attention to the movement mechanism, dials, and the material used. Automatic watches wind themselves through the movement of your wrist, while manual watches require regular winding.
- Decide On New or Pre-Owned: Decide whether you’re buying a brand-new or pre-owned watch. Brand new models offer a warranty, but they’re also more expensive. You can find great deals with pre-owned watches, but you need to be extremely careful in spotting fakes and defects.
- Visit Watch Dealers: Try on different models to see how they feel on your wrist. Pay attention to the weight, size, and overall comfort. Ask the seller about the watch’s features, maintenance, and warranty.
- Purchase and Insure Your New Watch: Ensure all paperwork is in order, including warranty and receipts. Protect your investment by getting it insured against theft, loss, and damage.
Additional steps for buying pre-owned watches:
- Check for authenticity: Only buy from authorized dealers, reputable jewelers, or certified pre-owned watch sellers. Look for the serial numbers, original papers, and packaging.
- Evaluate the condition of the watch: Check if the watch has been regularly serviced and request service records. Physically inspect the watch and look for signs of wear and tear, scratches, and dents.
Bob’s Watches’ Tips for Buying Your First Rolex
- Educate yourself on the different Rolex models, their features, and their market values.
- Identify the Rolex model you like based on what you can afford.
- Look for well-established dealers with positive reviews. This ensures you’re not buying counterfeit items.
- Ensure the watch is in proper mechanical condition. Make sure the store you’re buying from has watch experts on their staff.
- You get what you paid for in the watch industry. The cheapest option may not always be the best.
- Choose dealers that offer full warranties and authenticity guarantees. Look for dealers that provide optional third-party certification reports for extra assurance.
How Much Money Do You Need To Start a Watch Flipping Business?
You need about $5,000 to $10,000 to start a watch-flipping business. This covers the value of an entry-level luxury watch, transaction fees, insurance, and other incidental expenses. Entry-level luxury watches from Omega or Tag Heuer typically range from $3,000 to $5,000. Transaction fees on eBay are around 3% of the sale price for items under $15,000. Insurance usually ranges from 1% to 2% of the watch’s value. As you gain experience and profits, reinvest your capital to acquire higher-end watches. Successful watch flippers often achieve profit margins of 20% to 30% per transaction. Repeat the process to slowly expand your watch-flipping business.
Pejman Ghadimi Believes Luxury Watches Are Recession-Proof Assets
Watches are recession-proof because they are liquid, mobile, and can retain most of their value. Pejman likens watches to gold because of their immunity to market instability. Luxury watches are status symbols. You wear your name and reputation wherever you go. The watch market is typically cash-based. Unlike real estate, luxury watches are bought with cash, so you’re not affected by high interest rates. Watches are very liquid assets. You can easily move and sell them in different places without complicated permits, as with real estate and cars. Top watch brands deliberately limit their production. This ensures there’s always high demand for exclusive watches and their value increases over time. Pejman Ghadimi shares more of his insights in the Watch Trading Academy.
What Makes the Watch Business Risky?
- Price Fluctuations: The luxury watch market can experience sudden changes in value. The price of a Rolex Daytona can vary by several thousand dollars within a short period. Economic downturns or financial crises directly affect luxury goods markets.
- Prevalence of Counterfeit Items: The watch market is flooded with counterfeits. The Swiss Customs Office seized over 100,000 counterfeit watches in 2019. Some fakes are nearly indistinguishable from genuine items without expert analysis. New watch traders should be extra careful when buying from the secondary market.
- High Capital Requirement: The luxury watch market requires significant upfront investment. You need at least $10K to start a watch-flipping business.
- Cost of Maintenance and Repair: Luxury watches require regular maintenance to retain their value. Servicing a high-end watch can cost between $500 and $1,000. Replacement of genuine parts may cost even more.
- Highly Saturated Market: Online marketplaces and social media have made watch flipping more accessible, making the watch market more competitive. As certain models become too saturated, they also become harder to sell at premium prices.
My Low-Risk, Low-Capital, But High-Reward Alternative to Watch Flipping
My low-risk but high-reward alternative to watch flipping is local lead generation. This business builds simple websites and ranks them on Google. It’s a low-risk business because the lead gen market is always stable. Local businesses will always need leads to keep their competitive edge. The initial capital requirement is also much lower compared to watch flipping. You’ll only need about $500 to start a lead gen agency, whereas with watch flipping, you’ll need at least $10K.
Overall, watch flipping is ideal for watch enthusiasts and collectors. The business requires deep knowledge and experience in the watch business. Watch-flipping is a demanding business because you need to carefully choose the watches to secure profit in your investment. Local lead gen is the number 1 online biz for me because it’s hands-off and the income is stable and consistent. Ranked lead gen sites make money on autopilot, and they don’t need much maintenance. You can do it as a side biz or a replacement for your 9-to-5.
