Record lending against luxury watches: A 20% increase amid global value decline

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This surge is attributed to the global decline in luxury watch values, positioning these timepieces as a lucrative asset class for unlocking wealth through pawnbroking.

Charles Meyerowitz, chief executive officer of Lamna Financial, highlights the trends driving this growth. "Luxury watches, despite their declining market values, remain a highly valuable asset class. They offer a unique opportunity for individuals to access quick and substantial finance," Meyerowitz explained. "This increase reflects a growing awareness and utilisation of luxury watches as a reliable financial tool."

He said that the global market for luxury watches has experienced a downturn, with values dropping across various brands and models. “However, this decline has inadvertently boosted their appeal as collateral for loans. Owners are increasingly leveraging their timepieces to secure immediate funds, capitalising on the inherent value and liquidity of luxury watches,” he added.

"While the global market trends indicate a decline in watch values, it doesn't diminish the intrinsic worth of these luxury items," Meyerowitz noted. "At Lamna, we recognise the potential of luxury watches to unlock significant wealth. Our clients can access finance quickly and efficiently, without the lengthy processes typically associated with traditional bank loans."

“In the last quarter we have seen an 8 percent increase in first-time clients in comparison to the same period as last year and overall a 14 percent increase in the value of our loan book for the same period,” he explained. “Some of the most popular watches we see coming in include Rolex, Audemars Piguet and Patek Philippe.

“The process of securing a loan against a luxury watch at Lamna Financial is straightforward and discreet,” he said. “Clients can bring in their watches for a professional valuation, and within hours, they can access the funds they need. This service has become increasingly popular among high-net-worth individuals and collectors who understand the financial benefits of leveraging their luxury assets.”

Trust and transparency

Meyerowitz emphasised the importance of trust and transparency in Lamna’s operations. "Our clients value the confidentiality and professionalism we provide. We ensure that the lending process is clear and fair, giving our clients peace of mind that their valuable assets are in good hands."

The rising trend of using luxury watches for financial leverage is not limited to South Africa. Globally, more individuals are recognising the benefits of pawning high-value items as a flexible and efficient way to manage finances. Lamna Financials’ record increase in watch lending is a testament to this broader trend.

"As economic conditions fluctuate, more people are looking for alternative ways to access capital. Luxury watches, with their enduring appeal and tangible value, provide an excellent solution," Meyerowitz stated. "Lamna Financial is proud to be at the forefront of this trend, offering our clients the financial support they need, backed by the value of their luxury assets."

For more information on how Lamna Financial can help unlock the value of your luxury watches, visit Lamna Financials’ website or contact their customer service team for a confidential consultation.