Wake Up to Wealth Podcast: Investing in Luxury Watches with Zach Castillo

Episode Release Date: July 19, 2024

Introduction

In this compelling episode of the Wake Up to Wealth Podcast, host Brandon Brittingham welcomes esteemed guest Zach Castillo, a renowned expert in luxury watch investments. Together, they delve into the intricate world of luxury timepieces, exploring how these exquisite watches can serve as both personal assets and lucrative investments.

Exploring Luxury Watches as Investments

Zach Castillo introduces the concept of luxury watches not just as symbols of status but as viable investment vehicles. He emphasizes that while watches like Rolex may not yield astronomical profits, they offer stability—“you won't make a lot of money with these, but your money won't... you won't lose any either” (00:25). This balance makes them an attractive option for wealth preservation.

The Investment Potential of Rolex Watches

A significant portion of the discussion centers around Rolex models, particularly the Daytona series. Zach highlights specific models that have demonstrated substantial appreciation:

• Stainless Steel Panda Daytona: “They are so hard to get from Rolex... a stainless steel panda, goes for $15K at the AD, flips for $30K as soon as you walk out the door” (02:20).

• Platinum Daytona: “The platinum Daytona goes for about $70K and it'll run about $120K” (02:20).

These figures underscore the potential for significant returns, especially for sought-after variants.

Demand and Supply: The Rolex Advantage

The scarcity of Rolex watches, particularly from authorized dealers (ADs), fuels their investment appeal. Zach explains that the limited availability leads to a robust gray market where prices can soar:

• “Roles can't walk in and buy when you can't. Yeah, right. So that creates kind of the gray market, which is where you play in a lot” (05:09).

This tight supply chain ensures that certain models maintain or even increase in value over time.

Authenticity Matters: Importance of Box and Papers

Ensuring the authenticity of a luxury watch is paramount. Zach advises buyers to prioritize acquiring watches with original boxes and papers:

• “Box and papers is important. If you're getting charged for it, I mean, it's not a huge deal” (06:10).

He cautions that while some sellers might offer watches without authentic documentation at lower prices, having these documents significantly enhances the watch's resale value and reduces the risk of purchasing fakes.

Personal Experiences and Success Stories

Zach shares his own investment journey, highlighting notable successes that reinforce the value of strategic purchasing:

• John Mayer Rolex: Bought for $8,900 and sold for approximately $23,000 after its discontinuation (09:04).

• White Gold Pepsi Rolex with Meteorite Face: Purchased for $48,000 during COVID and sold for $110,000 at its peak (11:16).

These anecdotes illustrate the unpredictable yet rewarding nature of luxury watch investments.

Top Recommendations for Novice Investors

For listeners new to the luxury watch market, Zach recommends starting with Rolex due to its established reputation and consistent demand:

• Submariner: “Submariner. Yep. You can find, you know, an entry-level, some that even more solid than this model, like a 2005, 2008 model for about $8,500” (12:29).

He also suggests exploring models like the Datejust for those seeking reliable investment pieces within the $10,000 to $15,000 range.

Advanced Investment Strategies

For investors with larger budgets, Zach discusses higher-end models that offer substantial appreciation potential:

• Presidential Date Dial Rolex: Approximately $50,000 to $55,000, often selling above MSRP (13:05).

• Stainless Steel Daytona with Black Dial: A deluxe model that remains a staple among collectors (07:58).

These models require a more significant investment but can yield impressive returns, especially if they become discontinued or highly sought after.

The Gray Market and Strategic Buying

Navigating the gray market is essential for maximizing returns. Zach advises securing rare pieces through reputable sources and staying informed about upcoming model discontinuations:

• “If you can get a rare one from an AD... That's the play” (14:46).

He highlights the importance of timing and market awareness to capitalize on price surges triggered by limited availability.

Social Status and Network Effects

Beyond financial gains, luxury watches serve as conversation starters and status symbols:

• Recognition and Influence: “If someone knows it, they're usually somebody of influence and have wealth” (16:05).

Wearing a distinguished watch can enhance one's personal and professional networks, indirectly contributing to wealth-building opportunities.

Conclusion and Key Takeaways

Zach Castillo encapsulates the essence of investing in luxury watches as a blend of personal passion and financial strategy. By carefully selecting sought-after models, ensuring authenticity, and leveraging market dynamics, investors can enjoy both the intrinsic beauty of these timepieces and their appreciating value.

Notable Quotes:

• “You won't make a lot of money with these, but your money won't... you won't lose any either” — Zach Castillo (00:25)
• “I'm not the cheapest, but I'm the best. You know, I back my stuff 100%” — Zach Castillo (05:58)
• “Freedom. I mean, doing this is fun to me” — Zach Castillo (18:11)

Final Thoughts

This episode offers invaluable insights for anyone interested in diversifying their investment portfolio with luxury watches. Zach Castillo's expertise provides a roadmap for both novice and seasoned investors to navigate the complexities of the watch market successfully.

Connect with Zach Castillo:

• Instagram & Facebook: WatchAddicto LLC
• Website: watchaddicto.llc.com

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