Picture it: 1999. Some of you (the lucky ones) will not remember it because you were too young. The others will recollect the doom and gloom of Y2K and the black clouds threatening a global meltdown.

And yet, for a small group of people gathered at Sotheby’s auction gallery in New York, the only worry was who would be tabling the highest offer for lot number seven: an 18-karat gold pocket watch crafted in 1933 by Patek Philippe for New York banker Henry Graves.

Out of the 81 lots on offer, this was the one that made history as it fetched an astonishing €8.15 million winning bid. The anonymous buyer would certainly make an entrance, and exit, every time he wore his record-breaking watch.

Most probably, however, the Graves supercomplication – which has so many complications that it took five years to design and build – has never graced its owner’s wrist. Because, in much the same way that a stamp collector would never lick and paste a prized stamp on a Christmas card, collecting watches is all about possession. And possession is all about having something better than what someone else already has.

This explains why the auction of the Graves supercomplication gave birth to a new generation of watch collectors. And why the vintage watch market is now so valuable that it can be considered to be in the same league as Old Masters’ paintings, jewellery and fine wine.

So, you’ve got a bit of money (a lot, if you intend going for vintage numbers) and you want to add watches to your portfolio. How do you go about building a watch collection?

First things first. Start by doing some research. If you’re new to collecting watches, speak to other watch collectors (rivals) and research what exists, what is available, and what you want to collect. In other words, choose a theme for your collection. For instance, you can go for modern or vintage, choose to collect watches by a specific brand, or invest in one kind of watch, such as diving watches. The more you research and keep up-to-date with what is going on in the watch collecting world, the more you will be able to gauge current and future trends. As with any other form of research, always question the source of your information – there is as much incorrect information online as there are fake watches. As part of your research, follow auctions, since these give you a good idea of how prices are evolving.

Of course, as with any other purchase, you need to consider the value of your investment. Always buy the best watch that you can afford – it’s better to invest in a rare watch in mint condition than two watches in average condition. Quality always wins over quantity and with time, your one watch will gain more value than the other two combined.

The highest investment is usually required for complications, that is, watches which go beyond displaying the seconds, minutes and hours. The more complications a watch has, the higher the price. A six-figure price tag usually accompanies perpetual calendars, tourbillons and minute repeaters.

Be patient. If you’re after a specific watch, you will need to be at the right place, at the right time, and have the right budget. In other words, if your heart is set on a Vacheron Tour de l’Ile (€1M plus some change), you can’t just go to your nearest dealer and order one. The hunt is as pleasurable as the prey.

However, you also need to follow your heart – you don’t buy a Ferrari because you don’t like the car. So buy watches that you are attracted to and that you will still like in five or 10 years. After all, there is no greater joy that enjoying what you own.