Mechanical Watches Make Expensive Comeback

Ironic as it may seem, the big segment of the watch sector for collectors is watches made with the same basic mechanism used for hundreds of years.

When quartz watches came on the scene in the 1970s, manufacturers slashed production of their mechanical counterparts.

But, in line with basic supply and demand, when products are not made, there is only one direction the price of older and more interesting specimens is going to head.

Boosted by strong interest from European and Asian collectors and auction houses, the value of watches has risen so spectacularly that some watches made in the 1950s and 1960s that cost hundreds of dollars then are now worth thousands.

The Rolex Explorer, for example, a simple black military watch sold for $300 in the 1970s, now costs $6,000-$8,000. Meanwhile, a Patek Philippe moon-phase bought for $2,000 20 years ago cannot be obtained nowadays for less than $100,000, according to experts.

When mechanical watches regained some of their former popularity in the late 1980s, Swiss watch companies increased production, but found the skilled craftspeople of previous generations were no longer around so they used computers to aid in design.

The result, however, was well-made watches with sophisticated features and a high price-tag, but regarded by buyers as missing any soul. And the result is mechanical watches making a big comeback.