The evolution of luxury wristwatches from simple daily accessories into a serious, highly sought-after asset class has reached a new institutional milestone. On Monday, financial giant Goldman Sachs released its inaugural guide dedicated to navigating the complex market of buying and collecting luxury jewelry and timepieces, reflecting a broader shift in how high-net-worth individuals—particularly younger generations—manage their wealth and personal portfolios.
The comprehensive resource, titled Beyond the Sparkle: A Guide to Buying and Collecting Luxury Jewelry and Watches, was developed by the bank’s private wealth management division. Monica Heslington, head of the Goldman Sachs family office art and collectibles strategy practice, noted that the guide was designed specifically to assist the firm’s private wealth clients as interest in alternative investments continues to surge.
While the financial institution has historically focused a tremendous amount of its strategic advisory efforts on the fine art market, Heslington explained that there is a burgeoning and undeniable interest in jewelry and watches, particularly among next-generation clients. According to Heslington, the firm frequently hosts gatherings and educational seminars for younger clients featuring speakers on various niche investment topics. During the height of the COVID-19 pandemic, it became increasingly clear that interest in alternative asset classes was rising to the fore. Beyond traditional equities and fixed income, clients began pouring capital and passion into jewelry, watches, fine wine, rare musical instruments, classic cars, Pokémon cards, and Hermès handbags.
Even as the broader pandemic-era hype and speculative fervor settled down across global markets, luxury watches remained firmly top of mind for the bank’s clientele. This sustained enthusiasm prompted the firm to dedicate significant research and resources to analyzing the sector.
Unlike traditional financial instruments, Heslington points out that jewelry and watches are exceptionally emotionally and aesthetically driven purchases. Buyers frequently acquire these items for deeply personal reasons—whether as a milestone gift for a loved one, a sentimental keepsake to mark a major life event, or simply as an item they want to wear and integrate into their daily lifestyle. Because of these strong emotional drivers, buyers do not always put on their more analytical, strategic hats when entering the luxury market.
While Heslington acknowledges that personal desire often supersedes cold strategy, she emphasizes that the stakes change significantly when dealing with high-end pieces, secondary market transactions, or major auction houses. When an individual is preparing to spend substantial sums of money, ensuring the asset can hold its value over time becomes paramount. In those situations, buyers often encounter a steep learning curve and lack vital market knowledge. For individuals new to the space, the new Goldman Sachs guide aims to provide essential context and guidance to help them become more informed, confident buyers.
The foundation of the guide begins with a time-tested principle: understanding what makes a particular watch right for the individual buyer before exchanging any funds. Prospective collectors must evaluate whether they are searching for a reliable daily wearer, a foundational building block for a larger collection, or an heirloom meant to be passed down through generations. A buyer’s overarching objectives should directly dictate the degree of due diligence they perform. For everyday wear, the guide recommends taking ample time to explore different case cuts, styles, models, and brands to develop a comprehensive understanding of availability and personal preference.
When evaluating what makes a timepiece a genuine collectible investment asset, the guide stresses that a prestigious brand name alone is never enough. Every potential purchase must be judged strictly on a case-by-case basis. Heslington illustrates this nuance by explaining that if a buyer falls in love with a watch in B-minus condition and has no intention of selling it or caring about future valuation fluctuations, that piece might still be the right purchase for them. However, if the buyer is approaching the acquisition strictly from an investment and wealth preservation standpoint, a B-minus condition watch can quickly become a significant liability—unless market scarcity dictates otherwise, as pristine A-plus examples are not always available on the secondary market.
To prevent buyers from developing a false sense of security, the firm deliberately avoids casually tossing out specific brand names. Instead, the guide outlines five core factors that prospective buyers must consider to determine long-term investment value: rarity, historical significance, craftsmanship, condition, and authenticity. Rarity examines whether a watch is a unique, one-of-a-kind piece or part of a strictly limited production series. Historical significance evaluates whether the watch comes with a compelling narrative or well-documented provenance. Craftsmanship looks at the exceptional nature of the design and mechanical execution, while condition verifies whether the piece retains its original components. Finally, authenticity ensures the watch is supported by reliable and verifiable documentation.
For transactions involving significant price points, the guide strongly recommends bringing in an independent specialist to vet the purchase and conduct thorough due diligence across each of these critical factors.
Beyond initial acquisitions, the Goldman Sachs guide delves deeply into the complexities of estate planning and generational wealth transfer. Heslington notes that her advisory work spans a broad spectrum, from relative newcomers to seasoned collectors, as well as families dealing with emotional legacy items. A recurrent challenge in estate planning is that watches—unlike traditional financial portfolios—cannot easily be divided among heirs. While a portfolio of municipal bonds can be seamlessly split down the middle among beneficiaries, families often find themselves navigating delicate disputes over who will inherit a single treasured family heirloom, such as a grandfather’s vintage timepiece left to multiple grandchildren.
Given the heavy sentimental weight many timepieces carry, managing a collection requires a proactive approach focused on minimizing future family conflicts. Key wealth-planning considerations highlighted in the guide include preserving all original purchase documentation, maintaining an organized and continuously updated inventory for insurance and estate tax purposes, understanding the exact limits of existing insurance policies, and knowing when a specialized rider is required. Furthermore, keeping appraisals current is emphasized as a vital first step toward an effective legacy plan. Knowing the precise market value of a collection enables more accurate tax and liquidity calculations when financial planners assess various wealth-transfer strategies.
Proper storage and physical maintenance are also critical components of collection management. The guide cautions collectors to ensure that key external parts are never replaced during routine servicing without explicit consent, as unauthorized replacements can severely diminish a watch’s secondary market value.
Ultimately, the guide concludes by underscoring how closely watches are now aligned with traditional fine art and other passion assets. Whether an investor is acquiring a rare Hermès handbag, a museum-quality painting by Picasso, or an intricate time-measuring masterpiece by an independent horologist like F.P. Journe, informed buyers are expected to ask the exact same rigorous questions regarding quality, authenticity, condition, and overall investment potential.
However, Heslington, who has spent 14 years at Goldman Sachs, points out that watches differ from fine art in several distinct and practical ways. The market for wristwatches is considerably broader because almost everyone wears or appreciates a watch, and timepieces require significantly less physical storage space than large canvases or sculptures. Furthermore, the learning curve associated with horology is often less intimidating. Appreciating a watch does not necessarily require deep academic knowledge of art history or iconography, making the category feel more approachable and less foreboding than walking into a traditional fine art gallery or museum.
According to Heslington, the primary reason it has taken watches this long to be fully recognized as a major asset class is simply the time it has taken for market prices to reach thresholds that command serious attention from institutional wealth managers. While the fine art world has seen individual masterworks sell at auction for staggering sums ranging from $50 million to upwards of $450 million, the watch market has yet to see a single timepiece cross the $100 million mark. While some private collections may approach high valuations, the category remains financially behind fine art. Yet, it is precisely the steady ascent of these substantial secondary market figures that has successfully turned the heads of ultra-high-net-worth investors around the globe.
