Gold vs. luxury watches: Which is the better investment?

Although Americans continue to deal with high inflation and high interest rates, the upside has been that many investments have been rising too, such as with the S&P 500 and Dow Jones Industrial Average hitting record highs in 2024. But stocks aren’t the only hot investment. 

Gold prices, for example, have also recently hit record highs as some investors have turned to precious metals to diversify amidst the current economic conditions. And, other alternatives, including collectibles like luxury watches, can also be appealing to those looking for portfolio diversification, although resale prices of luxury watches have been on a downward trend lately, according to WatchCharts data. 

Still, as the saying goes, past performance is not a guarantee of future results. Just going on recent prices alone isn’t necessarily the best way to choose between investing in gold vs. luxury watches. 

Find out more about the gold investing options available to you here.

Gold vs. luxury watches: Which is the better investment?

There could be some scenarios where one is a better fit for certain investors, including:

When gold might be the better investment

Some situations where it might make more sense to invest in gold rather than invest in watches include the following:

When you want to hedge against inflation

While your dollar might not go as far as it used to due to inflation, it’s possible that buying gold could provide a better hedge.

“If someone’s worried about ongoing inflation, gold might be a smarter bet than luxury watches. Gold has a long history of holding its value when prices rise, acting like a safe haven,” says Aron Solomon, chief strategy officer at Amplify, and a co-founder of Mission Watch Company.

“Luxury watches are a massive crapshoot as their value can fluctuate based on trends, brand popularity, and collector demand, which might not always keep up with inflation or provide the stability someone might be looking for during uncertain economic times,” he adds.

Explore how gold could add more value to your investing portfolio now.

When you want more liquidity

If you need to sell an asset for cash, gold is often considered more liquid than luxury…