It’s More Than Just the Watch….
As well as the fact often most vintage watches have prices lower than their modern counterpart, it’s the intangibles that grip the true collector – the timepieces tell the story of their era – and their owners
Article by Alex Ghotbi
I’ve been getting a lot of comments recently about the vintage watch “hype” and supposed “bubble”, but before going any further I would like to say that there is no “hype” nor “bubble.” If it were a hype then it would have been the longest lasting hype in history as the vintage watch market has seen systematic growth since the mid-1980s.
Forbes describes a bubble as “a run-up in the price of an asset that is not justified by the fundamental supply and demand factors for the asset.” In other words a price that is isolated from reality. At Phillips Watches we have had the privilege of setting record breaking prices for vintage watches we have had on offer such as the steel Patek Philippe perpetual calendar chronograph that we auctioned in November 2016 for over 11 million Swiss Francs.
Our upcoming Geneva auction on May 13-14 will certainly see new world records as we will have a certain number of pieces that are being either offered for the first time or are back on the market after decades preserved in private collections. We will be auctioning what is most probably the most valuable Rolex of all time: the reference 6062 “Bao Dai”, a triple calendar with moonphase in yellow gold that is one of only three black dial models known to exist with diamond markers. Of the three, the Bao Dai, is the only example to feature diamond markers at the even hours, making this piece truly unique. This is further enhanced by imperial provenance, having belonged to His Majesty Bao Dai, the last emperor of Vietnam. Other Rolex highlights include a Rolex reference 6241 Tiffany & Co. John Player Special Paul Newman Daytona and a reference 6265 in yellow gold made for the Sultanate of Oman. Both these watches are believed to be unique. Obviously there will not only be Rolex models but also incredibly rare and valuable models from the likes of Patek Philippe, Vacheron Constantin or Heuer.
All these elements put together show that there is in fact no bubble but a strong market.
Let’s not forget that vintage watches are rare not because a brand decided to make a limited number in a special case metal/dial combination, but because they were made in a time of pre-industrialized manufacturing, which means that finding models in good condition becomes more and more difficult as we go forward.
The reason collectors are willing to pay such amounts is due to the rarity and condition of these watches, and at Phillips we prefer to concentrate on three vital elements: quality, quality and quality. We prefer to offer a 5,000 Franc Universal Genève in superb condition rather than a beat up and poor quality Rolex Daytona.
Now that we have set that there is no hype or bubble then how can we explain the attraction of vintage watches?
One important element is the price. The prices obtained at auction, exceptional über rare timepieces aside, most vintage watches have prices lower than their modern counterpart but with the advantage that the price is a “market price” and not one set by the brand and as such there would be no or little loss or even a gain in the event of a resale. The rarity factor is also a very important one as vintage watches are rare per se and chances of seeing the same watch on the wrist of another collector are remote. Interestingly, when this happens it actually creates a bond between the two collectors.
However, I would think that the most alluring elements in the desire for vintage watches are completely intangible. First and foremost these watches have a story to tell. They tell the story of an era, that of their first owner and that of their current one. They have a je ne sais quoi of elegant nonchalance of an owner showing a fee spirit, that of someone not subject to marketing spiel and trends. 
Alex is a Watch Specialist at Phillips in Association with Bacs & Russo
Phillips Watch Auction 13-14 May, Geneva / www.phillips.com/auctions/auction/CH080117