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The Collector's Series: Luxury Watches | By Reagan A. Hamilton, ChFC®
Consumers make purchases for a myriad of reasons ranging from personal consumption to investing in a perceived future value. Unlike more conventional investments where valuation is more closely related to the business' financial strength or projected future earnings, the markets for collectibles are often impacted by more tenuous factors. These factors can include trends and fads, technological advances, lack or abundance of disposable income among would be collectors, and scarcity. So why would one choose to invest in this way? Where there is risk, there is often opportunity. Understanding which fluctuations in price are a sign of things to come and which indicate a more temporary market shift may make the difference between great success or being left with a beautiful, albeit less-valuable, timepiece.