A Guide To Watches: What Makes Luxury Watches So Expensive?

A Guide To Watches: What Makes Luxury Watches So Expensive?

Watches come in all kinds of shape, sizes, and prices. Yes, you can get $10 watches at a market, and yet some luxury watches go for 5 or 6-figure sums. What warrants such a hefty price tag? Is it ever worth it to buy a watch for hundreds of thousands of dollars?

First, let’s take a look at what makes luxury watches so expensive.

Watchmaking is an art requiring fine craftsmanship

When we talk about luxury watches, they are usually mechanical watches that are painstakingly handcrafted and assembled by master watchmakers. Watch movements are highly intricate and consist of many tiny parts that work in harmony to make the watch function. It requires utmost attention and precision to measure, cut, and mould all of them to the correct dimensions. The margin for error is extremely small, making each piece virtually perfect.

Adding on to that, watchmakers are constantly looking for new ways to innovate and make better, more accurate, or more creative watches. All this research and development also takes plenty of effort to conceptualise, test, and manufacture.

The most luxurious watches are exclusive

Adding to the value of these watches are their limited numbers. Some watchmakers produce watches in extremely limited quantities, which propels these watches into collector’s territory. For limited edition watches by prestigious brands, the value can appreciate even more as the watch ages. That is why some people see watch collection as a form of investment.

Materials add to the price tag

Amazing watches are made with some of the finest materials to ensure their durability, aesthetics, and prestige. These materials range from gold, silver, titanium, platinum, and stainless steel, to sapphire, mother of pearl, and precious stones. Even a simple ladies’ gold watch with the best quality materials will already cost a significant sum.

Then there are watches which venture into the realm of jewellery watches. These are generously adorned with jewels like diamonds, rubies, emeralds, and so on – some with intricate engravings, insets, and other designs. Sarcar watches are a brilliant example of this, and you can expect these to be, rightfully, priced very handsomely. 

You pay for brand prestige

In the luxury business, price markups for the best brands are an open secret. At the end of the day, you are not just paying for the materials and workmanship on the watch, but also for the reliability, creativity, and years of history that the brand is known for. After all, it is never easy to build up a luxury brand from scratch.

Think of it as a guarantee you are paying for. Between a men’s Swiss watch and a no-brand watch, wouldn’t you rather pay more for the Swiss watch, knowing that Swiss watches have strict quality guidelines to follow?


Many reasons justify the hefty price tags of luxury watches, but are they worth your money?

They could be if you know what you are doing – some research can go a long way.

Ultimately, luxury watches are what its name suggests they are – luxury. If you can afford them and appreciate them, they will be worth every bit of your penny, just as how art collectors will not scrimp on purchasing famous artworks. Alternatively, if you wish to try your hands at watch trading, luxury watches are where it’s at.

Thinking of getting a luxury watch? Always make sure to purchase from a reputable seller to ensure the authenticity of the goods. Leong Poh Kee is a trusted and authorised dealer of luxury watches from brands like Leonard Montres, Ball Watch, Romago Swiss, and Sarcar. Browse our online store or our physical store at Beach Road for our collection of watches for sale.