When Paul Graham takes the time to study the history of Swiss watchmaking, it is worth paying attention. As the co-founder of the famous Startup Accelerator Y Combinator, he has shaped modern startup culture and backed companies such as Airbnb, Stripe, and Coinbase. His recent essay, The Brand Age, explores how mechanical watches evolved from precision instruments into luxury goods defined by brand, scarcity, and perception.
The fact that someone like him is diving into this space already says something. Watches are no longer a niche interest. They sit at the intersection of culture, capital, and identity, attracting attention far beyond traditional collector circles.
At the core of Graham’s argument is a simple truth. Mechanical watches are no longer the most efficient way to tell time, and they have not been for decades. Quartz movements, smartphones, and connected devices have made precision widely accessible, effectively commoditizing the original purpose of the wristwatch.
What remains is something else entirely. Today, watches are expressions of craftsmanship, heritage, and personal identity. They carry meaning in a way that purely functional objects no longer can. This transformation is not unique to watches. It is what tends to happen when technology solves the functional problem completely. What cannot be commoditized becomes the new source of value.
Graham takes this observation further by suggesting that leading watch brands are effectively maintaining what resembles an “asset bubble,” supported by scarcity and brand positioning. While this is an interesting perspective, it oversimplifies the reality of the luxury market.
Luxury watches are not priced purely on perception. They are the result of a complex and costly ecosystem that includes in-house manufacturing, movement development, hand-finishing, precious materials, global distribution, marketing, and long-term servicing. These are not marginal costs, they are fundamental to the product itself.
More importantly, the same logic applies across the broader luxury sector. If watches are considered a bubble because of branding and controlled supply, then the same argument would need to apply to fine art, high-end automobiles, and fashion. Let alone Bitcoin and Crypto coins that cannot look back at decades and centuries of heritage. But luxury has never been priced on utility alone. It is priced on desirability, craftsmanship, scarcity, and cultural relevance.
A more accurate interpretation is that watches are undergoing an asset-class evolution. Over time, certain categories develop the characteristics of investable assets, and watches are increasingly showing those traits.
Markets typically evolve in stages. First, collectibles gain recognition and secondary markets deepen. Then, pricing becomes more transparent and liquidity improves. Finally, financial infrastructure begins to emerge, making access more flexible and participation broader.
The watch market is now moving through these stages simultaneously. Scarcity is controlled, demand is global, and pricing data is more accessible than ever. At the same time, new financial solutions are entering the space, making ownership more dynamic and lowering barriers to entry. This is not what a speculative bubble looks like.
It is what a market looks like as it matures.
One of the most distinctive aspects of luxury watches is that they do not behave like traditional financial assets.
They are rarely purchased purely for return.
People buy them because they are drawn to the craftsmanship, the history, and the emotional significance.
That is precisely why some watches perform so well over time. The models that become culturally relevant and widely desired are often the ones that show the strongest resilience in the secondary market. Emotional value and financial value are not in conflict here. In many cases, they reinforce each other.
Another important signal of this shift is the changing profile of collectors. Figures such as Sam Altman, Mark Zuckerberg, and Jeff Bezos have all shown increasing interest in high-end Swiss watches.
And so does our friend Paul Graham who went further and carefully studied the history of the Luxury Watch Market.
This reflects a broader trend. A new generation of capital, particularly from technology and entrepreneurship, is entering the market. Watches are no longer just heritage objects appreciated within traditional circles. They are becoming part of a modern wealth conversation, where culture and capital increasingly intersect.
Graham is right about the fact that the watch industry has changed. It has evolved.
But that change doesn't represent the building of an Asset Bubble or loss of what the watch market stands for. It is a transformation of it. Mechanical watches are no longer tools in the traditional sense. They are objects of culture, expressions of identity, and increasingly, stores of value.
At Yourasset, we see this shift every day. As access improves and the market becomes more transparent and flexible:
Watches are evolving beyond collectibles into a category that sits naturally alongside other alternative assets.
Not a bubble.
But something more interesting.