Brits buy Swiss watches out of fear of Brexit

Britons worried about Brexit aren't just stockpiling medicines and toilet paper They are also looking for ways to secure their assets. And jewellers are also noticing this, because the demand for Swiss watches has increased sharply in the past month. According to the Swiss Watchmakers' Federation, the export of timepieces to the United Kingdom in February Up 58%. In fact, the country accounts for 80% of the global increase in Swiss watch exports.

It is not clear whether this is an increase compared to last month or a year ago. However, it is clear that the increase is much greater than in other important markets for Swiss watches. In the first two months of this year, the United Kingdom imported a total of $242 million worth of watches.

Flight to 'hard assets' due to Brexit

The uncertainty of a possible Brexit is making high-net-worth individuals in the UK nervous. Since the referendum in 2016, the value of the British pound has risen sharply. Dropped. Savers have already lost more than 10% of their purchasing power due to the Brexit troubles, when you convert the value to another currency. The fear is that a no-deal Brexit will put further pressure on the value of the British pound.

To reduce that risk, wealthy Britons are seeking refuge in tangible assets. At the beginning of this year, the British Royal Mint already spoke of a Strong increase in the demand for gold coins and Gold bars. Now it appears that Brits are orienting themselves towards Swiss watches as an alternative form of power. These types of timepieces represent a high value and are relatively stable in value. Rare and highly sought-after specimens can even increase in value over the years.

Gold vs Watches

Gold and watches are both tangible possessions with a relatively high value. Both are purchased by high-net-worth individuals as a form of wealth. Yet they are two completely different investments. Investment gold is a fairly standard product, the value of which can be easily determined. This is more difficult with watches, because this market is constantly evolving. Some watches may become worth a lot of money, while others may even become worth less. You also have to maintain watches, while you Gold Coins and put away gold bars without looking after them.

Buying an expensive Swiss watch as an investment is therefore not for everyone, while you can't do much wrong with the purchase of investment gold. Gold coins and bars are traded at a very small premium to the Gold price, making the market value much easier to determine.

Disclaimer: Holland Gold does not provide investment advice and this article should not be read as such. Investing involves risk, and past performance is no guarantee of future results.