High-end watches are a ''fantastic'' investment strategy

First published: 18-03-2010

Looking to ensure your money is safe from market forces in the continued economic confusion after the worst of the recession? It may be that watches provide you with the best hope, according to a new report.

In a study of the industry for the New York Times, it was noted that 2009 proved to be a "surprisingly strong year" for watch auctions, despite the problems with investment strategies elsewhere.

And while sales figures dropped at auction houses such as Christie's and Sotheby's, the percentage of lots sold exceeded 90 and 80 per cent respectively.

Speaking to the world-famous newspaper, Aurel Bacs, the international co-head of Christie's watch department, said that actual sale prices were double or triple expectations, making 2009 a "spectacular year".

He said: "We had secured consignments in the fall of 2008, after the collapse of Lehman Brothers, when the world was in turmoil. Sellers were hesitant to consign the best lots."

However, Mr Bacs reiterated that "spring auctions showed that prices were strong and the market was hungry for more goods."

Earlier this month, French luxury group LVMH did not rule out the possibility of acquisitions in the watch sector over the next few months, though denied links to the potential purchase of Bulgari.