Why does a mechanical wristwatch that was manufactured in 1929 by Hamilton, and that sold as recently as four years ago for its gold value, now bring a fair market of upwards of $4000 (Hamilton Spur)?

Why does a gold-filled Gruen Curvex, which had virtually no value four years ago currently sell upwards of $600-800? Why are there countless examples of previously valueless granddad wristwatches bringing record prices? Gresham's law. The 16th century economist, Sir Thomas Gresham realized that "when you withdraw something from circulation (stop production), its values goes up." In his day, it was silver coins. In ours it is mechanical wristwatches.

Worldwide production of wristwatches by the end of the '70s was 200 million pieces per year, almost exclusively mechanical. By 1988, worldwide production is approaching 500 million units, with virtually 80% being quartz variations.

All the ingredients are in place for a bona fide collectible to flourish:

1. A willing and aggressive group of collectors anxious to pursue informed purchases.
2. A rather large and growing group of individuals who wish to own one or two watches as fashion statements or for nostalgic reasons, who will wear and enjoy a single piece.
3. The liquidity that comes from the ability to dispose of or trade items through dealer networks, flea and ultimately auction houses.
4. A reasonable supply of material.
5. A growing source of information that intelligently describes and discusses the wristwatch.

The globalization of the market adds energy and a dynamic force that partially account for the rapid rise in prices. What began in Italy in the late '70s, traveled to Germany and England, and took root in America as early as 1979 or 1980, is now flourishing on three continents as well as Japan. As the field rapidly to include a growing number of collectors, dealers, and auctions, more opportunities present themselves. The European bias toward high grade European products has created a vacuum, and an opportunity for fine American products. Hamilton Greun, Illinois, Elgin, Bulova, and Waltham give us the basis for an exciting collectible.

This book hopes to explain the development of the American industry, how it quickly changed from its European parentage, became a leader of industrial design throughout five decades, and has produced a rare and desirable product. It far exceeds the European product in design. American watches, more than European, synthesize all the currents of industrial design in all the periods covered, and dramatize the excitement and leadership that America has given the world vis-a-vis its industrial design.

Genuine opportunity exists to find enameled bezel watches, unusual case materials such as 18k gold and platinum, the great decorative watches of the '20s, doctors' watches, Reversos and Curvexes of the '30s, wild and pink varieties of the'40s, fantastic asymmetries of the '50s, and, of course, the Space View, the truly post-modern series, the Accutrons of the '60s.

It is the fashion aspect of these periods that motivates many of those who are excited by these watches, and it is the secret of the phenomenal success that wristwatches have experienced in the last few years. Stylists and fashion editors in the major international press are promoting the intriguing and versatile designs of former periods as a necessary component of the complete wardrobe. Hundreds of thousands of willing buyers are being cultivated worldwide, ready to be unleashed on the market.

Otherwise, conservative people will indulge in this tasteful display of "luxe". The phenomenon is explained by the reality of the conservative nature of the American businessperson. The men and women who make up the middle and upper middle classes are the newly wealthy in this country. Aged 30-50, and employed in the financial and banking industries, they dress carefully for their success, avoiding the ostentation of previous generations of the nouveau riche We do not see the men of this generation wearing large diamond rings. They are no longer draped in heavy gold chains about the neck. Their jewelry is limited to their cuff, and now their wrist.

Style and status, wealth and powers, and all other signals of success can be read with the flick of a wrist, the bringing back of a cuff. The wearer can express himself any way he or she chooses, whether it is an exaggerated style or a $5000, $10,000 or even $100,000 wristwatch. It's a subtle expression of pleasure. It can be worn and carried with the owner, for the owner's pleasure and a small circle of friends and knowledgeable people. It is not kept locked in a box, in a desk drawer, or hanging on a wall.

As with any collectible, the knowledge and experience available from dealers can be invaluable. They have been trading wristwatches for many years, and they have built up a vast inventory of knowledge and price information. They have the service of restorations and repair and stand behind each piece they sell, usually with a year's warranty. They advise estates and individuals, bring their experience to bear as auction agents, and are available to the seasoned and new collector and to the people who want to give one watch as a gift for a special occasion or the collector who passionately seeks them by the dozens. Their advice and counsel can help the collector reach his or her own goals of enjoyment, value and personal taste.