When it comes to mixing wealth, status and cultural significance together, there are few who can compare with Shawn “Jay-Z” Carter. The rap mogul and business magnate has created an empire out of music, fashion, real estate and spirits but not the least of which is his watch collection. One of gems in his watch collection is an incredible $5 million Hublot Big Bang, and while it shows his taste for extreme wealth, it also demonstrates the increasing financial attraction of luxury watches.
The Watch: Hublot Big Bang “5 Million”
This is not your standard Hublot. Jay-Z’s is an all diamond Hublot Big Bang that some call the “5 Million” (even though Hublot and Jay-Z have never called it that). Taking over 14 months and assembled by a team of a dozen master cutters and binder setters, each diamond was carefully selected for clarity and consistency, and it represents a unique combination of luxury and craftmanship. Of course, it was given to him as a birthday gift from his beautiful wife, Beyoncé. Introduced in 2012, this ultra-luxury timepiece has:
- 1,282 diamonds, weighing more than 100 carats
- 6 emerald-cut diamonds, each weighing more than 3 carats
- A case and bracelet in 18k white gold
- Unique: there is only 1 piece
Also read: Inside Billionaires’ Vaults: The Most Expensive Vintage Watches Ever Owned!
More Than Bling: The Financial Angle
A diamond watch selling for $5 million might seem like over-the-top extravagance at first glance, but to ultra-high-net worth individuals such as Jay-Z, it is also a method of asset diversification. The watch was a one-of-one and more than likely will appreciate in value whether Jay-Z wears it or keeps it like King Tut’s golden mask. Here are two ways to view this as investment:
1. Rarity Equals Value Retention
This Hublot Big Bang is a one-of-one piece. In the luxury watch market, attention to rarity brings value to the asset. One-of-one pieces tend to appreciate – if they lose value, it is more likely to be less than dozens of, let’s say, $3-$5,000 pieces. The demand for one-off or rare pieces of horological art makes the resale market attractive.
2. Alternative Asset Class
Most luxury watches – especially with astounding provenance or ownership by a celebrity – have seen stronger prices and some say collectible watches could be included as an alternative asset class. According to the Knight Frank Wealth Report, collectibles (including watches) have appreciated more than other investments over the last ten years. The fact Jay-Z owned it adds additional pop culture significance.
3. Trophy Asset Signaling
For billionaires, luxury is deliberate. For example, owning and wearing a $5 million watch is not simply about the wealth it embodies, but signaling oneself into an elite global network.
In closing
Jay-Z’s $5 million Hublot Big Bang doesn’t just represent a luxury item – it also represents an allocation of aspiring luxury. The costs of the timepiece can be separated into a multitude of factors like scarcity, craftsmanship, fame, and investment. For the average investor, wearing a timepiece like the Big Bang may feel out of reach but there is a reality that is unfolding in the world of high finance: There are moments when time really is money – and at times it can be even more, like $5 million on your wrist.
Written by Pranjal Data
