Buying luxury watches over property to hedge inflation

China’s enthusiastic property investors are turning their attention to luxury watches as a better store of value in the face of slowing economic growth and President Xi Jinping’s intensifying campaign against housing speculation.

In fact there is more evidence to tell that why Rolex, Patek Philippe, Audemars Piguet, Vacheron Constantin and Richard Mille are being used as a hedge against inflation. Many middle class Hong Kong people have stored up more buying power as they are not able to spend their money on travelling, outgoing for big dinner during these two years COVID lock down, moreover, they are having more time to search for alternative items for their money outlet.

Really there is a lot of attraction for buying Watch than property

1.Buying/selling luxury watches are simple, no need to go through law firm or signing any legal document

2.No commission between seller buyer, but may have commission 6.5% at Chrono24

3.The turn-around time is just a 3-6 months for Rolex whereas property takes 3 -5 years for good yield

4.You can store you watches at home or a vault in bank

5.No tax involved in buying or selling, no need to declare income tax

6.No maintenance fee for watches

7 Very low risk base on these two years trade records provided you are buying the right models

8.The trading amounts is starting from HK$150,000 which is having lower amount that most people can afford, as for a real estate entry fee is a few million HK dollars.

9.Here I don’t mention Vintage Rolex as they are requiring a lot of product knowhow. Some exceptional rare expensive items may go for Auction for higher return.

Watch is a new currency now as you can carry a watch of US$1m out to any country.

Selling to dealers

Direct to dealer with cash, they buy fresh watches preferable within two months but profit is lower as they trade in volume. There are about 600 dealers in Hong Kong.

Selling to end user

The profit is higher but you have to know the ways

Trade security is also important if you don’t know the buyer as we always prefer trade with cash, which is simple and easy.

Many commercial channel can help you on this fb, IG, Carousell, fb market place, Chrono24, Watch box… etc

HK Snob