Flipping watches is blasphemy to some collectors. It can have quite a negative connotation in the watch-collecting world. To understand why buying and selling watches quickly is seen as such a bad thing, we need to explore it in more detail. Join us as we dissect the term “watch flipping” and what it involves.
If you flip a watch, it doesn’t automatically make you a “flipper”. And if you flip a watch, it’s not always intentional. What if you want to sell a watch for reasons other than profit? Should you be scoffed at for doing so? Listen, no one said watch collecting was the most straightforward of hobbies. There’s so much to explore before you invest and so many risks. Sometimes, you make a profit; other times, you make a loss. It’s the way the cookie crumbles.
Buying and selling in itself can be an enjoyable experience, and it’s important to remember that not everyone wants to buy a watch and wear it forever. Likewise, sometimes, a collector needs to make room in their collection for another addition. The most advantageous way to do it is to sell a watch for more than you paid for it. That’s not always guaranteed in the horological world, as many watches can lose value on the pre-owned market. But for those lucky enough to have chosen wisely, selling a watch for more than they bought it for allows them to make money from it and buy a more expensive watch. This is the practice known as flipping watches.
What are the risks of flipping watches?
A problem that can be associated with flipping watches is the grey market. In order to make a profit, a buyer may have to look at buying from the grey market. While this isn’t illegal, it does pose risks. Buying a watch from the grey market can cost less but may lack official warranty coverage. Consumers also risk accidentally buying a fake or counterfeit watch or having problems sourcing after-sales care or repair work. There are, however, opportunities to break into the watch-collecting world in other ways. The pre-owned market is a great way to learn the basics of flipping watches.
What are the basics of flipping watches?
Watch selling and buying go hand in hand since both are intertwined - one typically requires knowledge of the other. Most collectors have sold at least one watch, and most sellers are collectors themselves. Prestigious manufacturers are renowned for producing watches in limited numbers, which feeds into the demand and drives prices up in the pre-owned market. Having said that, many reputable pre-owned dealers sell watches for a genuine and reasonable price, enabling enthusiasts to trade and build their collections up as long as they know when to buy and sell. It all comes down to timing.
Generally speaking, the most investible watches to flip are those that hold their value well. Names like Omega, Cartier, and Rolex do well since they’re favoured by collectors all over the world. Whether you plan to immediately flip it or not, one superb watch to invest in is the Rolex GMT-Master II Pepsi Dial – a throwback version of one of Rolex’s most iconic timepieces. The watch was launched in 2018, peaking in resell value in 2022. Even now, the Rolex Pepsi retains its value remarkably well, making it a great option, even if you intend to keep hold of it for several years.
Is flipping watches profitable?
The million-dollar question every buyer wants to know before investing in a watch is whether it will hold its value. It doesn’t mean said buyer intends to sell it immediately and make an instant profit from it. Moreover, it’s reassurance that their watch isn’t going to turn out to be a damp squib in years to come and have no value worth handing down the family line as an heirloom.
Buying and selling watches can be profitable, but not always. Sometimes, you can lose money fast. Many watch buffs scowl at watch flippers because they believe that watch collecting should be about a love of all things horology. If you invest in a watch you love, you really haven’t lost anything, even if it depreciates. Indeed, the key to watch flipping safely is to be patient and enjoy wearing watches as much as you enjoy refreshing your collection. As you become more experienced, you’ll get a feel for when to sell a watch and when to take the plunge and invest in one.
Of course, the auction world looks very similar to the watch-flipping one. The rarest timepieces go to the deepest pockets, and the process looks a lot more transparent than when an authorised retailer sells a rare new watch to someone who has been waiting on their list for a while. When that consumer flips the watch at a seemingly exorbitant price, the world has a problem with it, but really, the concept is very similar. Those with the cash at auction get the watch. When it comes to the grey market and flipping watches, however, both affect one another.
Brands force authorised dealers to sell their old stock for a lower retail price, giving consumers the scope to profit from reselling them. At the same time, the grey market is caused by brands forcing those same retailers to buy more of their less popular models than they can realistically sell for a high price. The retailers then offload these watches to platforms where they sell on the grey market.
Whether buying from the grey market or a pre-owned dealer, flipping watches has advantages and disadvantages. While it’s beneficial to clear out the lesser-worn watches of a collection, there is something to be said for enjoying watches for what they really are – true horological works of art.