I’ve spent nearly two decades in the jewellery and luxury-goods world, and I can tell you something that might surprise you: watches have become one of the most liquid assets everyday Australians rely on when life throws a curveball. Not shares. Not antiques. Not even gold bars. Watches.
It’s funny, because a lot of people still see a luxury watch as something you buy to celebrate a milestone or mark a moment — not something you could ever turn into quick financial breathing room. But over the past few years, I’ve watched more and more people walk through showroom doors not to buy, but to ask about getting a loan against watches they already own.
And honestly, I understand the shift. These days, a high-end watch isn’t just a status symbol; it’s very often a surprisingly stable financial asset hiding in plain sight. If you’ve ever found yourself staring at a Rolex or Omega sitting untouched in its box and wondering if it could help you navigate a tight spot, well… you’re not alone.
In this piece, I’ll walk you through why loans against watches have become so popular, how the process really works behind the scenes, and the little things I wish more people knew before they step into a pawn office or luxury lender. Think of this as the sort of insider chat you’d get if you sat down with a jeweller over coffee — equal parts practical advice and personal observations.
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Why Watches Make Surprisingly Good Collateral
Most people don’t realise how resilient the luxury-watch market is. Even during the ups and downs of the economy, watches from reputable brands tend to hold their value far better than, say, electronics or cars. Some even appreciate — sometimes dramatically.
But beyond the resale chatter, here’s the real reason lenders love watches: they’re easy to authenticate, easy to store, and easy to value. That means less risk, quicker decisions, and, in many cases, better loan terms for the customer.
I’ve seen people borrow against:
- Rolex Submariners that haven’t been serviced in a decade
- Vintage Omega Speedmasters that look like they’ve been through war
- Panerais, IWCs, Cartiers, Breitlings — you name it
You might assume the watch has to be pristine, but that’s not necessarily the case. As long as it’s genuine and in reasonable working condition, it still carries value.
What really matters is the brand’s desirability, the model’s rarity, and whether you’ve got the original box and papers tucked away somewhere. (If you do — keep them safe! They can add hundreds or even thousands to the valuation. I’ve seen paperwork make the difference between a mediocre offer and a genuinely impressive one.)
A Loan Against Watches Isn’t the Same as Selling — and That’s the Beauty of It
A lot of people come in feeling a little embarrassed, as if getting a loan against personal items means they’re giving something up. But that’s not the case at all.
With a loan against watches, you’re not parting with the piece permanently. You’re using it temporarily as security. Once you repay the loan, you get it back — just as you left it.
I’ve met people who:
- Needed quick cash for a house deposit top-up
- Were bridging the gap between invoices in a slow month
- Wanted to cover a medical or dental bill without dragging a credit card into it
- Were travelling overseas and didn’t want to liquidate investments
Life happens. Cashflow tightens. Luxury watches provide a flexible, no-questions-asked safety net that doesn’t touch your credit score.
One man I remember vividly owned a gorgeous two-tone Datejust. It was his 40th birthday present from his wife, but they suddenly needed money to cover emergency vet bills. He was devastated at the idea of selling it. When he realised a loan was an option instead, he actually sighed with relief — and yes, he got that watch back two months later, still shining like the day he left it.
How the Valuation Process Really Works
I’ve done hundreds of valuations, and there’s a pattern that always holds true: people generally underestimate the value of their own watches.
Maybe it’s the Australian modesty thing, or maybe people assume pre-owned automatically means cheap. But the second-hand luxury-watch market is strong, especially for iconic brands.
Here’s what happens during a typical valuation:
1. Authentication
The first thing a professional will do is examine the:
- Movement
- Serial numbers
- Model numbers
- Weight and materials
- Dial and hands
- Case back and crown
Trust me — you can’t fake a Rolex movement. Plenty have tried.
2. Condition assessment
Scratches are expected. Tiny dents too. As long as the watch functions properly (or can be serviced reasonably), it still carries substantial value.
3. Market comparison
Lenders look at current resale data: auction results, secondary-market prices, collector demand. Trends shift — sometimes unpredictably — and a good valuer stays on top of that.
4. Offer calculation
A loan offer is typically a percentage of the watch’s current market value.
Better brands = higher percentage.
Rare models = even better.
The whole thing can take anywhere from 10 to 30 minutes with a proper specialist.
The Benefits of Getting a Loan Against Watches Instead of Taking Out Traditional Credit
You won’t hear this from banks, but alternative asset lending — especially against luxury watches — has become incredibly popular because:
◆ It’s fast.
You can walk in with a watch and walk out with cash the same day.
◆ No credit checks.
Your watch is the collateral. Your credit score stays untouched.
◆ No lengthy application process.
You’re not filling out forms about employment, income, or living expenses.
◆ Short-term and flexible.
Terms are usually designed to be repaid quickly, avoiding long-term debt traps.
◆ You keep ownership.
You get the watch back as soon as the loan is cleared.
For many people, it feels less invasive and more respectful than traditional finance. And honestly, I think that’s part of why it’s booming.
If you’re curious about how the process works from the lender side, this page on loan against watches explains the steps clearly without the usual industry jargon.
Where You Go Matters — A Lot
Not all lenders are created equal. Some specialise in luxury assets; others are more general pawnshops that may not deeply understand watch valuations.
If you want a smoother experience (and a better offer), it’s worth choosing a lender who deals specifically in premium items.
And if you’re the type who researches everything — which I think is wise when luxury goods are involved — you’ll also want to know the difference between good operators and great ones.
Great lenders:
- Provide transparent valuations
- Offer secure storage
- Aren’t pushy
- Explain the loan terms clearly
- Respect your privacy
- Understand the collector market
Not-so-great lenders:
- Rush the valuation
- Keep changing the loan terms mid-conversation
- Offer a suspiciously low amount
- Pressure you to sell instead of loan
- Don’t seem to know the difference between a Calibre 3135 and a 3235
(If they don’t know the difference, run!)
Why The Demand Has Increased in Australia — A Bit of Social Context
We’ve all seen the cost of living creep higher. Insurance premiums, fuel, rent, even groceries — everything’s jumped. And with interest rates shifting more times than some people change watch straps, Australians are thinking differently about how they access cash when they need it.
Add to that the growing popularity of luxury watches as investment pieces, and you’ve got the perfect blend of practicality and asset-driven finance.
There’s also a quiet cultural shift happening. For a long time, Aussies hesitated to use personal items for loans. It felt “American” or “like something people do on TV.” But today, the stigma’s fading. More people are realising it’s simply an intelligent use of assets you already own.
Some even use watch-backed loans strategically — freeing up liquidity while keeping a valuable investment intact.
Tips From a Jeweller: How to Maximise Your Loan Offer
Want the highest possible offer? Here are a few simple things that always help:
1. Bring the box and papers
This alone can boost value dramatically. Proof of purchase, authenticity documents, original packaging — they all matter.
2. Give the watch a gentle clean
You don’t need to polish it (please don’t), but removing dust and fingerprints helps the valuer see condition more clearly.
3. Know the full model reference
Collectors aren’t just buying “a Submariner.” They’re buying a 124060 or a 16610. Knowing your reference makes the process smoother.
4. Bring any accessories
Bracelet links, straps, tags, receipts — all add value.
5. Choose a specialist lender
This one might be the most important. The more they know about watches, the better your experience.
What If You Decide to Sell Instead?
While most people I work with prefer loans over selling, there are times when selling is the cleaner option — especially for older pieces you no longer love or modern watches you’ve outgrown.
If you go down that route, do your homework. Some sellers in Melbourne, for example, start with established dealers or Melbourne gold buyers who also deal in luxury watches on the side. The advantage? They already understand precious metals, condition grading, and current market pricing.
Even if you don’t sell, talking to reputable buyers can give you a sense of what your watch is worth on the open market, which helps when negotiating loan terms.
A Few Watch Models That Tend to Attract Strong Loan Offers
This list changes from year to year, but as of recently, these models consistently perform well:
- Rolex Submariner
- Rolex Datejust
- Rolex GMT-Master II (especially Pepsi and Batman)
- Omega Speedmaster Professional
- Omega Seamaster Diver 300M
- Cartier Santos
- Breitling Navitimer
- Panerai Luminor
- Tudor Black Bay models
- IWC Pilot watches
Of course, there are countless exceptions — rare editions, limited releases, discontinued models, or even quirky pieces that suddenly become fashionable again.
The watch world moves in cycles. One minute everyone wants steel sports models; the next minute, slim dress watches are back in vogue.
Real Stories From the Trade
Without giving away names, here are a few memorable moments that show how personal watches can be:
The Wedding Watch
A groom-to-be used his TAG Heuer as collateral so he could pay off venue deposits. He told me, “I’d rather give up my watch for a few months than cheap out on the wedding.” He got it back a week before the ceremony.
The Inherited Omega
A woman inherited her dad’s vintage Omega from the 70s. She didn’t want to sell, but needed a bridge loan during a house settlement delay. That watch meant the world to her — and she said she felt relieved knowing it would be kept in a vault until she returned.
The Collector
One client regularly rotates watches through loans — not because he needs money, but because he likes keeping his collection “working for him.” It’s a surprisingly smart strategy.
These stories always remind me that watches aren’t just objects. They hold memories, achievements, or sentimental weight. Being able to hold onto them — even when you need cash — is something I genuinely appreciate about the loan model.
The Bottom Line: A Watch Can Be More Than a Luxury — It Can Be a Lifeline
If there’s one thing I’ve learned in this industry, it’s that luxury watches have a way of pulling double duty. They’re beautiful, yes. They’re functional, definitely. But they can also step in during life’s crunch moments and help you breathe a little easier.
Getting a loan against watches isn’t about letting go of something precious; it’s about unlocking the value in something you’ve already invested in.
If you ever find yourself weighing up whether to stash that watch in a drawer or let it help you navigate a tricky month, just know: you’ve got options, and good ones at that.