When it comes to alternative investments, rare watches can be timely. After a decade of fluctuation, experts say prices of collector watches are rising steadily now; and for the super rarities, bids at auctions are soaring.

Indeed, this decade has seen some hefty prices. Recently, a Geneva auctioneer sold a unique, man�s platinum watch by Swiss maker Patek Philippe for 2.09 million Swiss francs, the highest price ever paid

Rolex Cosmograph Daytona 1960 -     $450 CAAP* - $11,500

for a wristwatch at auction. The same watch was sold in 1981 for 185,000 francs. A stainless steel Patek Philippe�s man�s wristwatch fetched $863,408 at Sotheby�s in London, more than five times what it would have brought in the late �80's.

Since 1991 very important and elaborate watches are an average 50% above their former boom prices.

�Average collector-watch prices are rising by an average of at least 10% a year,� says Ruth Zandberg, head of Christie�s international watch department.

Many experts feel that the collector-watch market must continue to rise. European economies are picking up; Asian economies are still growing; the American economy is on course, and demand still continues to outstrip production for many handmade models.

Still, we must warn fledgling investors that some watch prices can have nasty ups and downs. For would-be buyers of antique and collectible watches, here are some time proven guidelines

Cartier 18kt. Ultra Thin Tortoise 1980-     $3,000 CAAP*- $6,000

from our experts.

Brand Heirarchy - There is a clear heirarchy in the watch market, with seven companies forming the first group and, therefore, usually providing the best resale value. They are Switzerland�s Patek Philippe, Rolex, Vacheron & Constantin, Audemars Piguet, and France�s Cartier, I.W.C., Breguet.

Patek Philippe 18kt 1955 -     $650 CAAP* - $6,000

Authenticity - Only timepieces with uncontested authenticity can qualify as an investment. One of the many reasons Patek Philippe watches bring the world�s highest prices is that is is easy to check their origin. Since founded in 1830, the company has numbered each watch it has made, and the watchmaker�s library offers buyers full information on a watch�s birth.

Condition - If a watch is left in a safe and never worn, its value can be increased by and additional 30%. But that�s not much fun. How much wear and tear the watch has suffered during its

Cartier Platinum Tank 1925 -     $600 CAAP* - $20,000

lifetime is most germane to its current value. Only those timepieces that were worn kindly and can be refreshed to showroom perfect should be considered for one's portfolio.

Originality - A changed case or improper bracelet can cut as much as 50% from the price, while a refinished dial on a vintage model can trim the price at least 10% to 20%; a renewed movement, however, isn�t tragic because the watch�s appearance isn�t changed. A watch�s original box and certificate also add value.

Rolex SS Submariner signed Tiffany & Co. 1970 -     $505 CAAP* - $2,800

Prices also increase if a watch had a famous owner or had been purchased from a renowned jeweler.

WARNING: For the lay person assertaining condition and originality can often times be impossible. You will limit your risk by buying from a competent source that will guarantee in writing that: What you are seeing is what you are getting!

Historical - For investors with vintage dreams and champagne budgets the experts agree the smart money goes on a watch that has a proven track record - at least a 5 year auction history that reflects a steady increase in price.

Most of the thousands of brands and styles of wristwatches manufactured in Switzerland over the last 90 years do not qualify for investment status. They have not endured the test of time. In other words, they lack that most important element that distinguishes a classic mark....long term consumer acceptance.

For those investors with a more modest budget and the need for an everyday watch, they may wish to consider Contemporary Classics - Tomorrow's Investments. There are more than a score of contemporary fine Swiss watches that one could consider as investments. Foremost amongst these brands are Vacheron & Constantin, Rolex, Cartier, Patek Philippe, Piaget, Audemars Piguet, Jaeger LeCoultre, and I.W.C.. Select models have shown dramatic increases in price and liquitidy over the last ten years. It's a good bet that prices will continue to climb.

We Have Tracked the Following 10 Watches Since 1988:

Rolex SS GMT 1988 Retail - $1,650 Current -       $3,300	Rolex Lds. SS/18kt 1988 Retail - $2,600 Current -       $4,200	Cartier 18kt Tank 1988 Retail - $2,500 Current -       $4,350	Cartier Dia. Panther 1988 Retail - $12,500 Current -       $18,900	Piaget Lds. Dancer 18kt 1988 Retail - $10,900 Current -       $18,900
Audemars Perpetual 1988 Retail - $19,500 Current -       $35,500	Royal Oak SS/18 1988 Retail - $9,750 Current -       $14,700	IWC DaVinci 1988 Retail - $14,900 Current -       $25,900	Patek 18kt 3520D 1988 Retail - $6,500 Current -       $10,800	Patek Perpetual 1988 Retail - $26,000 Current -       $44,000

70% Retail Appreciation in Less Than 10 Years
Plus the Joy of Ownership!

Many other timepieces have shown similar appreciation, many others have not.

Two rules of wrist:
#1 - Buy the watch that makes your heart happy.
#2 - If investment is the object, seek competent advice.

*CAAP=Current Average Auction Price