Whalesbook
Phillips' record-breaking Geneva Watch Auction: XXIII shows a significant shift: high-end watches are now seen not just as luxury items, but as strong alternative investments. The auction's massive total highlights how watchmaking skill and rarity are commanding prices comparable to fine art and other top collectibles, fueled by brand heritage, exclusivity, and a new generation of buyers.
The Auction's Record Performance
The Geneva Watch Auction: XXIII grossed an impressive $96.3 million, surpassing Phillips' own previous record of $83 million and setting a new high for any single watch auction. This is the second year in a row Phillips has achieved record annual watch sales, reaching $290 million in 2025 and capturing a leading 45% share of the auction market. The event broke 43 world records, with 14 items selling for over $1 million. This success places luxury watches in the same league as established investments like fine art, which saw global sales of $65.1 billion in 2021. This is notable as the wider luxury market faces economic challenges and slower consumer spending.
Rare Brands Fetch Top Prices
Top prices were paid for exceptional watches, especially from Patek Philippe and independent makers. The star of the show was an ultra-rare Patek Philippe Ref. 2523 “South America” world timer, selling for a record $10.2 million. F.P. Journe watches also saw strong demand, with its Chronomètre à Résonance “Souscription No. 18” bringing in about $6.3 million, showing the brand's rising popularity among collectors. Independent brands like Akrivia, with its AK-06 model fetching $3.9 million, are gaining recognition for technical skill and limited production. Collectors are clearly valuing these unique, high-craftsmanship pieces as both cultural items and serious financial assets.
New Collectors Drive Demand
Younger buyers, including Millennials and Gen Z, are increasingly shaping the luxury watch market. They see watches as investment pieces and personal statements, not just status symbols. Around 35% of Gen Z individuals plan to buy a luxury watch in the next year, with many viewing them as more easily sold than gold or property. This demographic is boosting the pre-owned market as they search for distinctive timepieces. While Rolex remains a favorite, interest is growing in independent watchmakers, showing a sophisticated collector base ready to invest in skilled craftsmanship and rare watches.
Phillips Leads Auction Market
Phillips has established itself as the leader in watch auctions, surpassing competitors like Sotheby's and Christie's. In 2025, Phillips' watch sales reached $290 million, compared to Sotheby's $193.6 million and Christie's $162.5 million. The combined sales for these three major houses in Geneva during May 2023 totaled $108 million. Although the fine art market is larger, with global dealer sales and public auctions valued at billions annually, watches are a rapidly expanding segment, making up 14.3% of the luxury auction market. This trend highlights watches as a key part of the growing collectibles market, expected to hit $52.8 billion by 2034.
Market Growth and Secondary Sales
The recent $96.3 million auction total is higher than Phillips' previous record of $83 million from November. Phillips achieved a total of $209.3 million in watch sales in 2021, a record at the time, which included a Patek Philippe Ref. 2523 that sold for $7.8 million. The market continues a consistent upward trend with more record-breaking events, as timepieces gain recognition for their long-term value. The pre-owned luxury watch market, valued at $16.73 billion in 2025, is also growing rapidly, serving as an important indicator of current market prices.
Potential Risks
Despite the strong performance, potential risks loom for the high-end watch market. Global economic uncertainty, geopolitical issues, and slower consumer spending could reduce spending on luxury goods. Although luxury watches are seen by some as protection against inflation and currency drops, a severe economic downturn might still dampen demand for very expensive items. The faster pace of sales in the pre-owned market, while showing it's easy to sell watches, also means more inventory can return quickly, potentially affecting future prices. The high competition among auction houses means they must carefully choose what to sell and market effectively to keep achieving top results.
Looking Ahead
Experts expect luxury watches to continue performing well as an asset class, thanks to their rarity, heritage, and steady demand from both long-time and new collectors. The market's ability to withstand pressure, especially for sought-after independent brands and classic models, points to continued growth. Projections estimate the global watch market will grow from $81.35 billion in 2025 to $116.14 billion by 2034, at an annual rate of 4.04%. This growth solidifies watches' status as a top alternative investment within the expanding luxury collectibles market.