Outperformance of Privately Owned Watch Brands

by Ennio Nico Limbach

When you think of luxury watches, brands like Rolex, Audemars Piguet, and Patek Philippe likely come to mind. They represent the pinnacle of mechanical craftsmanship, exclusivity, and share characteristics of alternative assets. Interestingly, more than 50% of the luxury watch market is dominated by private companies, such as those previously mentioned, keeping their shares closely held and not available to most investors. Notably, the products of these very brands also demonstrate a significant outperformance.

The Appeal of Fractional Ownership

Fractional ownership enables accessing luxury watches without the hefty price tag. Rather than shelling out thousands for an entire Rolex or Patek Philippe, you invest in shares of the watch itself. This approach provides you with the prestige of owning a luxury timepiece, and you don’t drain your bank account.

But that’s just the start. With Zurichberg, you're not limited to fractional ownership. As a holder of a fraction of a watch, you also have the option to buy out the entire watch. This flexibility enables a kind of goal-investing journey, where you can start small and eventually own the entire timepiece if you choose. It’s an ideal setup for those who may want to gradually increase their investment as their financial situation allows.

Moreover, you share the investment risk and rewards with other savvy collectors and investors. This collaborative approach means you can diversify your portfolio with multiple watches instead of putting all your money into one. Plus, when the value of these watches climbs, so does the value of your fractions. It’s a prudent strategy to potentially enhance your wealth in a market known for its consistent appreciation.

 Richard Mille watches: The Richard Mille phenomenon: How this watch brand  established a successful legacy in 2 decades - The Economic Times

A Market Driven by Scarcity

The intrinsic value of luxury watches derives significantly from their scarcity. These brands have honed the art of supply control, often releasing fewer watches than the market demands, which ensures that their products remain desirable and valuable over time. This scarcity fuels demand, driving up resale values and making these watches excellent candidates for investment.

Data supports this scarcity-driven appreciation. For instance, certain models of luxury watches have seen their market value skyrocket as they become vintage pieces or as the brand discontinues specific models. The limited availability, combined with high demand, often results in prices that far exceed their initial retail pricing on secondary markets. Zurichberg taps into this dynamic by allowing you to buy into a piece of this ever-appreciating market.

By coupling fractional ownership with a market driven by scarcity, we offer a unique pathway to engage with the luxury market and a share in the legacy and future growth of the world’s most prestigious watchmakers.


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