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Luxury watches outperform traditional assets: Expert projects continued growth

Since 2019, Timetrade Investments – the market-leading asset manager in luxury watches – has seen its portfolios[MM1] increase by more than 300 percent for low-to-medium risk profiles. The asset class has repeatedly outperformed gold and leading stock indices.

In an era shaped by inflation, economic uncertainty, and volatile stock markets, luxury watches have emerged as a growing global asset class. This is reflected in the proven track record of European frontrunner Timetrade Investments, which has demonstrated risk-managed portfolio performance with brands such as Rolex, Patek Philippe, and Audemars Piguet. The company, which is currently establishing a presence in the UAE, has delivered a total appreciation of more than 300 percent since 2019 for low-to medium-risk profiles.

Timetrade Investments’ luxury watch index has repeatedly outperformed the leading US S&P 500 index and gold – with a performance of up to 220 percent since 2020. During that period, the actively managed portfolios have delivered high annual returns, equal to an average IRR of 15-18 percent, while the liquidity horizon was reduced from 18 to 9-12 months.

– Luxury watches have proven to be a haven for capital preservation in good as well as challenging times, says Daniel Niels Nielsen, founder and CEO of Timetrade Investments. He adds:

– The market is among the least volatile and combines return, liquidity, and tangibility in a way that historically has produced solid results – such as during COVID-19, when some models soared in value. In many ways, watches are like gold, but with historically higher returns. That’s why I see a clear foundation for continued growth in the market.

Three market-driven factors behind rising watch prices

Daniel Niels Nielsen points to three market-driven factors that cause luxury watches to increase in value over time.

– Limited supply, growing global demand, and rising list prices mean that luxury watches over time have performed strongly in terms of value appreciation and preservation, says Daniel Niels Nielsen, and adds:

– The major brands deliberately produce a limited number of models to retain exclusivity, while global demand continues to increase, driven by growing wealth and stronger interest in luxury goods. This imbalance has elevated the value of luxury watches. Meanwhile, list prices continue increasing due to inflation and higher production costs that further strengthens the pre-owned watch market, which traditionally retains value well and protects investments against inflation.

These underlying market dynamics support a growing international investment market. Due to these conditions and a proven track record, Timetrade Investments is leveraging their recent establishment in the UAE as a foundation for global expansion.

– This is where we will build to the next stage of growth and position ourselves in a market that already shows incredible international potential, says Daniel Niels Nielsen.

Timetrade Investments is a specialized asset manager focusing on luxury watches as an investment asset. With more than ten years of documented performance in Europe, the company builds portfolios that combine data-driven decision-making with risk management and investment precision. http://www.timetradeinvestments.com

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Timetrade Investments is a specialized asset manager focusing on luxury watches as an investment asset. With more than ten years of documented performance in Europe, the company builds portfolios that combine data-driven decision-making with risk management and investment precision. http://www.timetradeinvestments.com

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