In these tough times it seems hard to understand why the luxury market is somehow expanding. One such instance is the Luxury Watch market. Although these are item of pure luxury companies like Omega, Rolex and Tag are reporting an increase. Obviously there is still money out there changing hands. So why are people buying such luxurious items. In the term of an investment, Rolex has been doing rather well. If you were to buy a stainless steel Rolex Submariner date model in 2008 it would have set you back around £3000. To buy that same watch in 2010 would have cost you more like £5000! So the potential to actually make a profit on such an item is clearly there. Some luxury watched are made with more precious materials, some have a waiting list. All these elements add to the desirability and increase the value. This is by no means true of all luxury items but it does show one very good reason for buying into this market.
I saw a Roles Daytona 18kt white gold model in a shop window with a price tag of £25,000. I happen to own one that cost closer to £6000 a few years ago. I've hardly ever worn it as I am to worried about loosing or damaging it. I would guess that I would now be able to double my original investment. Of course I may be kidding myself but it does seem to me to be a reasonable assumption. This does seem to me to be the most likely reason for the upturn in the luxury product market.
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