An IMGlobalWealth.com News Trendsetters Feature
Expert sees continued growth as demand and scarcity drive values higher
Luxury timepieces are proving to be more than symbols of status. In recent years, they have evolved into a resilient asset class, outperforming gold and leading equity indices. Since 2019, European-based Timetrade Investments – a market leader in watch-based asset management – has reported portfolio growth of more than 300% for low-to-medium risk profiles, cementing its reputation as a frontrunner in this niche yet rapidly maturing sector.
“Timetrade’s proprietary watch index has consistently outpaced the S&P 500 and gold, delivering returns of up to 220% since 2020”
Amid an era of inflation and market volatility, luxury watches have offered investors a rare blend of stability, liquidity, and tangible value. Timetrade’s proprietary watch index has consistently outpaced the S&P 500 and gold, delivering returns of up to 220% since 2020. Actively managed portfolios have achieved an average internal rate of return (IRR) of 15–18%, while average liquidity horizons have shortened from 18 to just 9–12 months, according to figures shared on the media platform MyNewsDesk, a Scandinavian-based digital newsroom that distributes verified business news and corporate communications to journalists, investors, and global media outlets.
“Luxury watches have proven to be a haven for capital preservation in both good and challenging times,” said Daniel Niels Nielsen, founder and CEO of Timetrade Investments, in an interview with MyNewsDesk. “The market remains one of the least volatile, combining return, liquidity, and tangibility in a way that has produced solid results – particularly during periods such as the COVID-19 pandemic, when some models soared in value. In many ways, watches resemble gold, but with historically higher returns.”
“Fortune Business Insights forecasts the global luxury watch market will grow from US$59.9 billion in 2025 to US$134.5 billion by 2032”
Industry data broadly support Nielsen’s assessment. A 2024 analysis by Chrono24 found that luxury watches appreciated by an average of 22.8% over five years, with Audemars Piguet gaining 64.8% and Vacheron Constantin 52.3% between 2019 and 2024. A study published on SSRN concluded that luxury watches display low correlation with equities, offering diversification benefits and lower volatility compared with traditional assets. Meanwhile, Chubb Insurance projects the pre-owned watch market to exceed US$30 billion by 2025, and Fortune Business Insights forecasts the global luxury watch market will grow from US$59.9 billion in 2025 to US$134.5 billion by 2032, representing an annualised growth rate of roughly 12%.
Nielsen attributes the strong performance to three intertwined factors: limited supply, rising global demand, and increasing list prices. Brands such as Rolex, Patek Philippe, and Audemars Piguet deliberately restrict production to preserve exclusivity, while the global buyer base expands, driven by growing wealth and a preference for tangible luxury investments. Inflation and higher production costs have also pushed list prices upward, strengthening the pre-owned market and protecting investors against inflation.
Though some models saw prices cool after peaking in 2022, analysts say the sector’s fundamentals remain sound. Scarcity, craftsmanship, and enduring global demand continue to make luxury watches an appealing hedge against inflation and market volatility.
With more than a decade of documented performance across Europe, Timetrade Investments is now expanding its operations to the United Arab Emirates, aiming to capture a growing international investor base. “This is where we will build the next stage of growth and position ourselves in a market with tremendous global potential,” Nielsen added in his MyNewsDesk interview.
