Investment

Patek Philippe, NFTs, and a low cost investment

What is believed to be the first sale of digital shares in a luxury watch is set to take place in October on a platform developed by wealth adviser Danny Sangha.

Through the deal, investors can buy stakes in the watch, a stainless-steel Patek Phillipe Nautilus, for $100 a piece. 

NFTs are generated through blockchain technology. They were tipped by billionaire Chamath Palihapitiya in February as an up-and-coming store of value for collectables

Sangha’s plan is to sell 1,000 units to achieve a reserve price of $100,000.  

His confidence stems from a boom for collectables, fuelled by an excess of investment capital, still underpinning real assets despite economic setbacks.

According to data supplier Chrono 24, the Nautilus could have a resale value easily in excess of $100,000 following a surge in prices. Some watches have doubled in value in five years.  

Patek Philippe is a Swiss watchmaker owned by the Stern family. It set a record for a luxury watch in 2019 by raising $31 million for Grandmaster Chime, which took seven years to assemble.  The Nautilus isn’t as special, although Chrono 24 says it is a highly-ranked option for aspiring collectors.

Sangha’s London-based platform, Sm-ART NFT, will sell stakes in the watch through non-fungible tokens (NFTs) unique to the purchaser, which confirm ownership.

NFTs are generated through blockchain technology. They were tipped by billionaire Chamath Palihapitiya in February as an up-and-coming store of value for collectables.

The digital ownership of a work of art brings buyers the exclusive right to display it on a computer.  

Sm-ART is now offering investors the chance to buy ownership fractions in other sectors, including art and jewellery.

The purchase of a stake in a luxury watch will not produce the right to use it, although it can produce capital gains – or losses – depending on sentiment and market liquidity.

Sm-ART will keep a 3% stake in the watch which will be kept hidden in secure premises. Commissions of 5% are payable for those who want to buy or sell NFTs, well below those charged by auction houses.

Even so, investors need to recall that investments in any asset – including luxury watches – can fall as well as rise.

Subscribe

You will need a Premium Plus Subscription to access this database.

Exclusive news, analysis and research on global family enterprise and private investment offices.

Access to the most comprehensive fully interactive database on global family offices, principal investment offices, and family enterprises.

Check Deal Data, Senior Staff, and New Analysis on more than 500 family/principal investment and holding groups

Already have an account? Login

Subscribe

You need at least a Premium Subscription to read this article.

The most comprehensive information service on the global family enterprise world, featuring exclusive news, analysis, research and data on global family enterprises, family offices, and private investment offices.

Premium

£299

per year

  • Exclusive reports, analysis and commentary
  • Exclusive access to family/private investment office deal information
  • Exclusive interviews with principals and senior management of family/investment offices
SUBSCRIBE NOW

Premium+

£399

per year

  • Access to All of Premium
  • Access to all of FamilyCapital Analytics, our interactive database with more than 500 detailed profiles of family investment groups

More Info

SUBSCRIBE NOW

Already have an account? Login

You've reached the end.

Continue reading free articles by registering as a Member.
Or choose a Premium Plan.

Membership

Free

  • Exclusive reports, analysis and commentary
REGISTER NOW

Premium

£299

per year

  • Exclusive reports, analysis and commentary
  • Exclusive access to family/private investment office deal information
  • Exclusive interviews with principals and senior management of family/investment offices
SUBSCRIBE NOW

Premium+

£399

per year

  • Access to All of Premium
  • Access to all of FamilyCapital Analytics, our interactive database with more than 500 detailed profiles of family investment groups

More Info

SUBSCRIBE NOW

Already have an account? Login

Leave a Reply