Is It The Brand or The Movement
Part 2 of 3

by Watchking

If you decide to collect watches that are new or of recent manufacture then the model of the movement and the watch brand are two important considerations. New watches won't be too scarce unless they are limited editions so rarity won't influence collectability. After a few years in the marketplace a track record will be developed for any modern watch and that will help you judge the overall value of the watches you want to purchase. In most cases a movement or watch model that has been available for five years will begin to be priced well, while still keeping the luster of "recognition", but won't have been flogged so heavily that it is passé.

It's always nice having a manufacturer's warranty on a new watch. And who knows, you might be on the leading edge of a trend that will establish the watch you buy as a classic. It might seem strange that the manufacturers/assemblers can use the same movement (or at least the same base caliber) when their watches can be wildly different in price. One of the best examples to use for this explanation/comparison is the ubiquitous ETA 2824/2, 25 jewel automatic movement. (Base Caliber is a reference to the movements that some watch companies buy for the purpose of taking the movement apart and either changing the way the movement operates or in order to add complications and/or special finishes or cosmetics).

The ETA 2824/2 movement has been around for a couple of decades and has earned a reputation for rugged reliability. It's only "fault" is that it isn't the most compact movement on the planet, but it can be made into a chronometer.  It is the heart of many dive watches, it accepts complications with ease and it's reasonably priced. In the 2001 model year there were watches from all the following brands using ETA 2824/2 movements or movements with the 2824/2 as their base caliber: Breitling, Croton, Davosa, dFreemont, Eterna, Jean Marcel, Maurice Lacroix, Mido, Nivrel, Porsche Design, Sothis, TAG Heuer, Tudor(Rolex), Xemex, and others. Amazingly the retail prices for these various models of "2824/2 watch" ranged from US$295 to US$3,300.

Of course many of these watches had added complications, and most of the watches using the ETA 2824/2 as their "Base Caliber" were using the plates and perhaps the balance or regulator for their watches, but when a movement is taken apart completely and the plates are redrilled, or moonphase or chronograph modules are added, the performance and value of the original movement are likely to be greatly enhanced. These enhancements are another tribute to the versatility of the 2824/2 movement. Used right from the manufacturer or completely rebuilt, the 2824/2 can be a reliable workhorse if not a thoroughbred. So what can the new collector of new watches deduce from the wide array of watch models all using a similar movement?

First of all look at the prices and differences to determine long term value considering the company that is "branding" the watch. For example, the dFreemont Chronometer (Palomar) is one of the least expensive certified chronometer watches on the market. If a precision mechanical timekeeper is what you want and collect, then this could be a good choice for you. Those seeking avant-garde styling might prefer the minimalist look of the Xemex or Porsche Design basic automatic date models. For a very low price the Mido, Davosa, Croton 2824/2s (and a few others even less well known models that are less expensive than US$295), will get you into a nice automatic 25 jewel watch with a proven movement. There are dive and pilot watches of great renown that also use this movement. In fact a collector could make an entire collection of different watch types, all of which use the ETA 2824/2 movement.

This proliferation of models has a huge advantage as time goes by. This situation is exactly the opposite of the service wasteland that currently exists for discontinued movements like the Lemania 5100. In other words it will probably be easy to get a watch serviced that uses a 2824/2-based movement, for our lifetime, and those of our descendants. All the 2824/2 based watch models are "safe" to wear because they can be fixed easily. The fact that these watches would be described as "full-sized" is also a benefit in an era when larger watches are in vogue. In addition watches with the 2824/2 movement as their base, are pretty familiar territory for most watchmakers and repair technicians. There is no great trick to servicing, cleaning and lubricating the 2824/2 movement. That is a reason why it is currently one of the most popular quality movements in the history of watchmaking.

Perhaps the large number of models using the 2824/2 movement could work against it in it's ability to retain value. But this hasn't been the case so far. There has been no dramatic price drop in the basic movement cost and so complete watches using these movements haven't really gone down much in price. Some new watch companies have brought out 2824/2 watch models that are very reasonably priced and this might put some price pressure on the more expensive brands (like Tudor), but it doesn't seem to have been significant. In fact, as time goes by and new modules for complications come along, there doesn't seem to be any major price reductions that have occurred in watches with 2824/2 movements. The recently depressed economic market (from 2001-2003) shows that 2824/2 movement watches have retained relatively stable pricing. This is good news for the new collector of new watches. Only time will tell if these watches are valued as collectors items. In 20 more years watches using this movement might be less desirable. On the other hand they could become classics, recommended as "a watch that every collector should have".

Most likely it will be the condition of the watches and the care the collector has taken to maintain the watches that will make the biggest difference in their value retention. As well, certain "versions" of 2824/2 watches will prove to be rarer, or easier to service, or styled in a trend setting way. All of these factors will make a difference in their future value as collectibles. And let's not forget the case design. The Rolex Oyster case is a famous example of a watch that became a classic to a great extent because of it's case design. Breitling is also a company whose watches are popular in large part because of their well thought out, and well made cases. This is a factor that new collectors should consider when they are building a collection of watches with a proven movement.

New collectors who like watches using the 2824/2 movement would be taking few risks building a collection of watches using this movement. There is no way to determine what a watch will be worth 20, 50 or 100 years from now. But it is possible to recognize a winning movement that would be a desirable one to have in any collection of watches that is also going to be worn on a regular basis. Wearing your collection is a big part of the fun of watch collecting. And while collecting for fun may seem much different than collecting for profit or collecting watches as rare art or craft, it definitely has it's place in the big scheme of things. I believe that collectors who enjoy what they are doing will pay more attention to collecting, research and maintenance and this will help the novice to make rewarding buying decisions. Good luck and have fun collecting watches.


 

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