COLLECTING watches has long been seen as a hobby for the rich, who enjoy displaying jewel-encrusted timepieces made of gold and other expensive metals.

A pricey timepiece glittering on your wrist does carry a certain status but you do not have to be rolling in cash to clock profits on watches.

This fact has not been lost on Singaporeans, with collectors' ranks swelling from just hundreds 10 years ago to nearly 5,000 today, according to expert estimates.

And with a wide range of fine watches now available from as little as $1,000 to as high as six figures, there is definitely something for all budgets.

Singapore's total trade in clocks and watches jumped 8.5 per cent last year to hit $2.6 billion and is expected to grow this year as the economy continues to perform strongly.

At this year's Tempus, a five-day showcase of luxury watches, an estimated 50,000 visitors viewed $150 million worth of timepieces.

Aside from fascination with the beautifully crafted exteriors and intricate mechanisms of these watches, it is the hope of finding one that will grow in value that attracts some aficionados.

Local watch connoisseur Bernard Cheong, recognised as one of the world's leading authorities on the subject, estimates that, on average, watches bought in 1998 would not suffer any loss in value if they were sold now, provided they were quality models.

By 2010, they could rack up 10 per cent gains over the original price, and much more if they were kept until 2018, he added.

The Hour Glass executive director Michael Tay says a Rolex Daytona model produced in the 1960s and made famous by actor Paul Newman, who wore it in some films, sold for $35,000 eight or nine years ago.

'It is now netting returns of five or six times that price and one was sold recently for $180,000,' he said.

An Audemars Piguet Royal Oak special edition model with a forged carbon case that was crafted for the Alinghi team in this year's America's Cup yacht race is already trading at a 70 per cent premium over its list price.

But before potential buyers rush out to grab the latest models on sale, it should be noted that such gems are few and far between.

Most collectors recognise that their favourite timepieces pale in comparison to typical investment options such as stocks and property when it comes to cash returns.

This is because one of the main factors driving the value of certain watches is their popularity with the masses.

Collector and watch aficionado Su Jiaxian, whose interest in timepieces began at age 13, said: 'Watches are not investment tools because, in order to make money, you need to know what people want or desire.'

'People's tastes change all the time and it's hard to know what they will want next year, for example,' added the 22-year-old undergraduate at the Singapore Management University.

Civil servant Allan Koa, who has been a collector since 2000, said it is hard to analyse trends: 'You should buy from the heart. If you make money, it's a bonus.'

Mr Tay agreed, saying that people should go with their hearts when selecting watches. 'Part of the fun of watch-ownership comes from the joy of getting a nice piece and wearing it regularly.'

Dr Cheong said his passion for watches had helped him over the years to appreciate form, history, physics and even human nature, on top of any monetary gains.

But most experts admit there are certain guidelines that can help watch-buyers to achieve the best possible returns on their purchases.

Choosing rare pieces that are part of a limited series is one way to ensure that your buy has a good chance of improving its value over time.

Certain brands have 'blue-chip' status and a reputation for quality and reliability, such as Rolex and Patek Philippe, and watches from these manufacturers are better bets, said Mr Tay.

Watches from traditional watch-making countries such as Switzerland, Germany and even Japan are also more popular among collectors.

Dr Cheong said other factors include the number of labour hours spent producing the watch and the materials and technology used.

Mr Su, who moderates an online watch forum thepurists.com, advised potential buyers to do thorough research and to consult reputable dealers such as The Hour Glass, Sincere Fine Watches and Cortina Watch.

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