Historic gold prices elevate luxury watches as investment assets

While gold prices are soaring to unprecedented heights, the second-hand market for luxury watches usually defers correction. According to expert, this opens an investment window with potential for higher returns than gold.

Gold prices continue to reach new heights. For the first time ever, gold prices surpassed $4,300 per troy ounce in October 2025, thus setting a historic record, according to data from Reuters. Investors traditionally look to gold, CFDs, and ETFs when gold prices are rising, but gold watches make up a solid and often overlooked opportunity for capital retention, according to Daniel Niels Nielsen, founder and CEO of Timetrade Investments. The company, which operates in Europe and the UAE, assembles specialized portfolios of investment watches for clients.

– Gold has historically preserved or increased in value through volatile periods. When central banks make large-scale purchases, it amplifies upward price pressure. And because gold exclusively follows price development rather than generating cash flow, many investors look for financial instruments that track the gold price – such as gold bars, CFDs, or ETFs, says Daniel Niels Nielsen, adding:

– Gold watches represent a unique asset class, and in contrast with investment gold, our portfolio of gold watches enables us to add strategy and craftsmanship. Gold watches correlate with raw material prices, but many extra dimensions are added with brand value and scarcity. The production of gold watches is deliberately limited, and many models are difficult to acquire. That gives an extra layer of protection against volatility and potential for returns that surpasses gold price developments.

Since 2019, Timetrade Investments’ portfolios have shown a total increase of 220 percent for low- to medium risk profiles and has thus surpassed gold as well as leading stock indices.

Luxury watches follow gold prices with delays

This year, leading luxury watch producers raised the price of several models, such as Rolex, which most significantly raised the price of the gold edition of Daytona with about 14 percent, according to a price list published by Italian Watch Spotter. When watch producers raise prices, the second-hand market typically reacts with a delay, says Daniel Niels Nielsen.

– First, the producers like Rolex regulate the list prices up because the material costs of massive gold are increasing. The second-hand market typically reacts with a six- to nine-month delay, when investors and buyers notice that a watch alone represents a significant raw material value, says Daniel Niels Nielsen, adding:

– The delay marks an appealing investment window, where capital can be placed in gold watches, until the market has fully caught up with the increase in prices. This allows for realizing additional returns.