Passion Driven Watch Investments Decoded By FutureGrail
7 min read
The world of watch collecting is as much about passion as it is about foresight. While iconic timepieces like the Patek Philippe Nautilus or the Rolex Daytona dominate conversations around grail watches today, the question lingers: which timepieces will capture the imagination—and the wallets—of the next generation of collectors?
Over the past few decades, watches have increasingly been viewed not only as functional timepieces but also as valuable assets. Like art and jewelry, watches have the potential to appreciate over time, making them a unique investment opportunity for discerning collectors. But with so many variables at play, one must consider whether investing in watches is a wise financial strategy and, if so, which watches offer the best return on investment.
The answers lie with - FutureGrail, an Auction House created by watch collectors, for watch collectors. FutureGrail was founded in Singapore by watch collector and investor Ali Nael and his business partner Mohsin Rizvi. The company has also appointed the esteemed horology historian Arnaud Tellier as Head of Curation. Tellier, who previously led the Patek Philippe Museum for 12 years, brings his unmatched expertise and experience to the team.
Together, they have built a cutting-edge and proprietary auction and blockchain platform where they offer one of the lowest buyers and sellers’ premium of 5% of the hammer price. From meticulously curated auctions to personalised private sales, the team ensures that the clients receive unparalleled service and guidance on the market trends. With a dedicated team looking into all aspects of your collection, you will be advised on opportunities and timings to buy or sell certain timepieces and gradually build the watch collection of your dream.
"Investing in the passion for watches is more important than investing in watches themselves. We’ve used our own experiences as collectors to create a business that truly caters to everyone. Our core values of Trust, Authenticity, Equality, and Innovation are paramount in equipping collectors with the knowledge needed to kickstart their collection journey with informed decisions. Keeping these values in mind, we not only created FutureGrail as an auction house but also as a safe space to display our own collection in a museum setting designed to inspire and empower both individual collectors and institutions such as foundations and family offices. Since opening, we have regularly held educational seminars, watchmaking workshops, private guided tours, and panel discussions to promote watchmaking and collecting, covering significant watches from the 18th century to the present day," says Ali Nael.
In recent years, luxury watches have evolved from mere timekeeping tools into valuable assets, often drawing comparisons to art and fine jewelry as potential investment vehicles. High-end watches have started to appreciate in value, making them an intriguing alternative investment option. But are watches truly a worthy investment? And if so, which ones should investors focus on to see the best returns? “Watches are good investments for two reasons. First, you need to believe in the brand and watchmaker, and the watches appreciate over time. But people often misunderstand the time effect. They think that just as a car depreciates after use over years, watches too would entail a loss of money but it’s quite the opposite. When investing in watches, always look at a long term value - about five to eight years and your watch will guarantee preserve value or command a premium. I don’t look at watches as an investment, I look at it from a preservation value perspective and to protect myself against inflation”, Nael reaffirms in his calm demeanour.
It is often presumed that rarity is a key factor in determining the value of a watch, but it doesn’t necessarily equate to value on its own. While rare timepieces can command higher prices due to their limited availability, their true worth is also influenced by factors like brand prestige, historical significance, craftsmanship, condition, and demand within the collector market. A rare watch from a renowned brand with a rich heritage, for example, will often hold more value than a limited-edition piece from a lesser-known label, even if both are rare. Ultimately, the intersection of rarity and desirability is what drives a watch’s market value, making it more than just the scarcity of the piece itself. The question is - Does rarity equate value?
A very assertive Nael says, “No, quality of the watch in terms of finishing, movement equates value. Rarity is in the difficulty of making the watch. In the vintage world, however, this is different. The condition of the watch followed by its provenance trumps the value and makes the timepiece extremely rare. When you own a timepiece that is actually rare, you wouldn’t let go of it without getting a good value on it. The real question you should ask yourself is it the watch that’s important to you or is it a fashion statement? This will help define the value for you”.
The BIG 3
Yes, recent auctions are testament to the fact that the "big three" – Rolex, Patek Philippe, and Audemars Piguet – continue to dominate the watch investment landscape, with collectors and investors alike gravitating toward these iconic brands. Their long-standing reputations for craftsmanship, innovation, and exclusivity have cemented their status as solid investment choices. Watches from these brands tend to hold or even increase in value over time, especially limited-edition models, vintage pieces, or highly sought-after references. However there does seem to be a shift according to Nael, “Yes it’s true but now the shift is also towards independent watch brands. It comes down to investing in the person, design and more. Now, we are seeing collectors have a wide spectrum of timepieces in their collection. I’ve also seen a trend of people buying two-hand, three hand watches and paying record prices for them because they understand that these timepieces are rare and sought after”.
Investing in watches can be a slippery slope, but as Nael advises, it's crucial to invest in the passion of watch collecting. When asked about balancing passion with investment, he emphasizes that it’s about having a clear vision and not simply following trends. While his personal preferences may evolve over time, he believes that knowledge is key. The more one understands about watches, the more confident and informed one becomes in building a valuable collection. Ali also stresses the importance of expanding knowledge through discussions at forums and staying engaged in the community to better understand the direction of the market.
Winding Your Way Into Watch Collecting
When it comes to building a watch collection for someone just starting out, Ali Nael emphasizes the importance of lifestyle. He believes that while personal taste plays a significant role, other factors come into play as well. For Ali, it’s not just about the watch but about the connection between the wearer and the timepiece. If tasked with curating a collection of 10 watches, he would include two independent pieces, two modern timepieces, two pocket watches, and four vintage wristwatches.
When advising new collectors on what to avoid, Ali stresses the importance of patience. He strongly discourages making impulse purchases, especially when there’s no emotional connection to the watch. He finds it disappointing when collectors buy watches from the secondary market simply for the sake of ownership. In fact, he observes that two-thirds of clients fall into this trap.
Watches are increasingly being recognized as a legitimate form of investment, gaining traction alongside traditional assets like art and jewelry. This shift is fueled by the growing popularity of rare and vintage timepieces, which can appreciate significantly in value over time. However, like any investment, the watch market requires a nuanced understanding. Knowledge, thorough research, and an awareness of current market trends are paramount to making informed decisions.
Watch the full interview here.
