Preserving Passion: Safeguarding Your Valuable Watch Collection in a Changing Landscape

Watch theft has been increasing over the past few years. Towards the end of 2022 and into 2023 we saw an increase in claims because of watch thefts, particularly in London. These were opportunistic thefts that took place in areas where people with wealth would shop.
 

In 2024 we have continued to see the majority of watch theft claims taking place in London, however this year is not as bad as the previous years. Watch thefts however have increased since June, in line with previous years. The majority of thefts outside of London have occurred while people have been abroad, with The Watch Register reporting that Ibiza and Barcelona have been the worst crime hotspots this summer. Other popular locations for thefts include the South of France and Marbella.
 

The Chubb Wealth Report 2023 revealed that 80% of affluent and high-net-worth individuals in the UK are collectors, with watches being among the most widely collected items. Our findings also showed that 86% of collectors identified theft as the greatest risk to their valuables.

 

The value of your timepiece might have changed dramatically.
 

According to Siobhan Tyrrell MRICS FGA DGA, Head of Valuations UK, Gurr Johns: “As a result of restrictions on travel and leisure activities during the Pandemic, there was unprecedented demand for tangible luxury goods. Consumers actively purchased jewellery and watches, and with a limit in the supply chain, prices increased by almost 40% before falling back somewhat in 2023.” 
 

Adrian Hailwood, Watch Consultant, Founding Member of The Jewellery Valuers Association and Managing Director of The Watch Scholar Ltd concurred, saying: “In 1999, pre-owned watches were the cheaper option, but as demand for certain models increased, prices skyrocketed, creating a bubble in the market. The COVID pandemic brought about a dramatic change in the watch world; watches were sold in the secondary market for between 4 and 5 times their retail price. Anyone who became aware of watch collecting as a hobby during this time would think that all watches went up in value rather than depreciating. As the world returned to normal in 2022, the bubble burst and prices began to fall.
 

For collectors who bought watches during the peak of the market, this means a significant reduction in the value of their timepieces. The allure of easy profits from flipping watches has disappeared, and collectors may now find themselves with watches that are worth less than what they paid.”
 

Meanwhile, prices in the retail market continue to rise. Tyrrell added: “Replacement values of premium watch brands continue to increase steadily. From January 2022 to January 2023, Rolex made a significant increase in their watch prices of 7% to 11% depending on the model and materials. This reflects production cost surges, the increased price of energy and raw materials, and the simple fact that demand is at record levels. 2024 prices have returned to a more standard increase averaging 4%.”
 
 

All this could mean you are underinsured or even paying too much for your insurance.
 

If the insurance value on your policy is too low, you might have to settle for a lesser item or cover the difference yourself. Conversely, too high a value could mean you are overpaying for your insurance.
 

To protect your collections, I advise you to regularly reassess the value of your watches. An accurate valuation can prevent the need to accept a lesser quality item or cover any cost difference after a claim. A professional valuation should include a full description of the materials used, a clear colour photograph (particularly important for unique pieces), and an accurate replacement value. It should specify whether it is an ‘Antique Replacement Value,’ ‘Second Hand Replacement Value,’ or ‘New Replacement Value,’ along with references to any reputable gemstone laboratory reports.
 

It is also vital that the registered valuer appraising your watches has specific knowledge and experience with watches and the watch market, rather than being a general jewellery specialist.
 

Chubb advises collectors to understand the potential vulnerabilities and risks associated with wearing expensive watches in certain environments, take steps to enhance the security of their watches, verify their online presence and limit the personal information they share, and be mindful of their surroundings when wearing valuable watches in public.

 

Enjoying and protecting your passions
 

As the Head of Personal Risk Services at Chubb, I believe it's crucial for collectors to be mindful of these market dynamics and recognize that trends can change quickly. While certain models and references may retain their value or even appreciate over time, it's essential to approach watch collecting with a long-term perspective and a genuine love for the timepieces themselves, rather than purely for investment purposes.
 

By being proactive and taking necessary precautions, you can reduce the risk of theft and continue enjoying and protecting your passion for watch collecting with peace of mind. For more detailed information, I encourage you to speak to your usual Chubb contact.

For more advice and guidance, please do not hesitate to contact us.

 

Sources

Chubb Wealth Report. Findings are based on a survey of 350 high net worth individuals in the United Kingdom, conducted by iResearch Services in September and October 2023 on behalf of Chubb Personal Risk Services. Respondents have a net worth from £1 million to £30 million and beyond. Participants predominately reside in London and its surrounding suburbs.