This is what makes Swiss watches by Richard Mille and Patek Philippe so expensive

There are several reasons why Swiss watch brands like Rolex, Patek Philippe, and Richard Mille are so expensive to buy, and somehow still manage to appreciate over time.

Some of these reasons are tangible, and there are also dynamics you can’t quite put your finger on.

Marketing, quality, and rarity certainly play a role.

But there’s also another factor that we sometimes forget about.

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Richard Mille and Patek Philippe are in the same bracket despite using completely different approaches

Richard Mille is a new player in the game (it was founded in 2001), but it has managed to build a lot of respect both from collectors and other Swiss watch brands in just 25 years.

Richard Mille famously manufactures every single component in its watches, including screws and bolts.

The attention to detail is crazy, but that is only one of the reasons why RMs are special.

The company also pioneered the use of new materials.

Historically, luxury brands use materials like gold and steel, whereas Richard Mille uses titanium and composite-based materials that it created and patented.

Watch brands like Patek Philippe operate in a more ‘traditional’ way, mainly because they’ve been around forever.

Patek Philippe was founded in 1839 and is part of the ‘Holy Trinity’ of watches along with Audemars Piguet (founded in 1875) and Vacheron Constantin (founded in 1755).

These things matter in watchmaking.

With a few exceptions, all manufacturers creating such expensive timepieces have two things in common.

They’ve all been around for well over 100 years (or 200+ years, in some cases), they all prioritize attention to detail, and they all create pieces that either hold their value well or appreciate over time.

The ‘real’ reason why these watches are so expensive

When Non-Fungible Tokens or NFTs (briefly) became the hottest thing on the market, some people theorized that people like Justin Bieber and Eminem were spending seven figures on these ‘JPEG images’ simply because they could.

The same goes for certain watches and cars.

People buy them because they can and, in this case, also because timepieces made by Richard Mille and Patek Philippe are solid investments.

Not only that, but these are also solid investments you can enjoy.

If you own a limited-edition supercar, you’re constantly aware that you’re losing money for every mile you put under its tires.

You need maintenance, services, and a garage where you can park them.

With a watch, realistically, all you need is a safe and insurance.

And even if you wear it, it won’t particularly tarnish its value.

Mark Zuckerberg is often seen wearing his Rolex Daytona Le Mans, and its value is still going up.

In the same way you generally can’t walk into a Ferrari showroom and buy a limited-edition Ferrari unless Ferrari says so, you can’t buy a brand-new Richard Mille straight from the dealer.

And that’s why these watches are always going up in price.

Because they’re in demand, and supply is scarce.

The oldest market dynamic in the world.