A few years ago, the idea of walking into a shop and borrowing money against your watch might’ve sounded unusual — even desperate. But in 2025, that’s changing.
Across Melbourne, Sydney, and even regional towns, people are quietly using their luxury watches as collateral for short-term loans. It’s not just collectors or high-rollers doing it either; small business owners, freelancers, and everyday professionals are discovering that their watches are worth more than they realised — not just sentimentally, but financially.
And honestly, after spending a few weeks digging into how a loan on watches actually works, I can see why it’s becoming a thing.
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The surprising value sitting on your wrist
When I first started researching this, I expected it to be all about big brands — Rolex, Patek Philippe, Audemars Piguet. But you might be surprised: even mid-range luxury brands can qualify.
One Melbourne pawnbroker told me, “You’d be shocked how many people have watches sitting in drawers that could unlock a few thousand dollars in minutes.”
The process is straightforward: you bring in your watch, they assess its market value, and you walk out with cash — no credit check, no lengthy paperwork. The watch itself is your security. When you repay the loan plus interest, you get it back. If not, they sell it to recover their costs.
There’s an entire niche now built around this — and places like Melbourne Pawn Shops specialise in helping people get a loan on watches safely and transparently.
How the loan-on-watches process really works
I spoke with a couple of lenders in Melbourne, and they all described a similar process.
You walk in with your watch — ideally with its box, receipt, or authentication papers — and they perform an on-the-spot valuation. They’ll look at:
- The brand and model
- Materials (stainless steel, gold, titanium, etc.)
- Age and condition
- Whether it still has original parts
- Market demand (yes, the used luxury watch market is booming right now)
Then they make an offer. It’s usually 40–70% of the watch’s resale value, depending on risk.
The loan term can range from 30 days to six months, and you can extend by paying the interest. The watch is stored securely in a vault during the loan period.
One thing that struck me: unlike personal loans or credit cards, these transactions don’t usually involve credit checks. If you don’t repay, the watch is simply sold. That might sound harsh, but it’s also refreshingly clean — no debt collectors, no mark on your credit file, just a straight trade.
Why Australians are turning to asset-based loans
When I asked people why they chose to borrow against a watch instead of using a credit card or applying for a bank loan, I heard the same themes over and over again.
1. Speed and simplicity
“You can’t get that kind of turnaround from a bank,” one business owner told me. He’d used his Omega Seamaster to fund a short-term gap in cashflow. “They valued it, gave me the cash in under an hour, and I got it back a month later.”
2. Privacy
There’s no credit check, no nosy questions about what the money’s for. The loan is entirely secured by the asset.
3. Avoiding a sale
Many people aren’t emotionally ready to sell a treasured watch — it might be a family heirloom or a milestone purchase. A loan offers flexibility: you get the money but still have the chance to reclaim your timepiece.
4. Better rates than payday loans
While pawnbroking interest rates can seem high if you stretch them over a year, short-term use often works out cheaper than many unsecured quick-cash options.
The changing image of pawnbroking
Let’s be honest — for a long time, pawnbrokers carried a bit of a stigma. But that’s been shifting fast.
Modern pawnbrokers in Melbourne and other cities now operate like boutique financial services. Glass counters, espresso machines, private consultation rooms — a world away from the dimly lit shops you might imagine.
A few even focus exclusively on luxury goods: watches, jewellery, designer handbags, and fine art.
It’s part of a broader trend where people are rethinking their assets. Rather than letting things sit idle, they’re finding ways to leverage them for liquidity. It’s practical, and in some cases, even empowering.
What to watch out for (pun intended)
Of course, it’s not all smooth sailing. Before you hand over your watch for a loan, here are some things to consider:
- Know the terms: Ask exactly what interest you’ll pay and how extensions work.
- Check storage conditions: Reputable lenders will store your watch in a secure, insured vault.
- Get multiple quotes: Just like selling a car, valuations can vary widely.
- Understand the risk: If you can’t repay, you’ll lose the watch — permanently.
Reputable businesses are upfront about these conditions. The less transparent ones? Walk away.
When watches meet gold: overlapping worlds
It’s interesting how the luxury watch and gold markets have started blending. Many pawnbrokers who offer watch loans are also gold buyers — they already understand the precious metal market and know how to assess value accurately.
If you’re someone who trades in jewellery or owns gold pieces you might consider selling, it’s worth reading up on how that world works too. The gold buyers Melbourne scene is thriving right now, with gold prices staying relatively strong.
In fact, I met one investor who occasionally flips between both markets — pawning watches when he needs liquidity, then investing profits back into gold bullion when prices dip. Smart move.
How the pandemic changed our relationship with luxury
Something else I noticed during my research: people’s emotional relationship with luxury goods has shifted since the pandemic.
For years, watches were status symbols — something you wore to show success. But when COVID hit, they became something else: assets.
Collectors started trading, swapping, and even loaning against their pieces. Many saw watches as tangible stores of value in uncertain economic times. That mindset hasn’t disappeared. If anything, it’s grown.
Now, watches aren’t just fashion statements. They’re functioning as mini financial instruments.
The emotional side of it
There’s something oddly poetic about borrowing against a watch. It’s literally time funding time — one small chapter financed by the device that measures every passing second.
I spoke to a young creative from Fitzroy who used his Cartier Santos to secure a few grand for a short-term art residency overseas. “I didn’t want to sell it,” he said. “It was a gift from my dad. But I needed the funds quickly. So I pawned it. Got it back a few months later. It bought me time — literally.”
That stuck with me. Because that’s what this kind of loan really offers: time.
Practical tips if you’re considering it
- Document everything. Keep copies of your contract, valuation, and identification used.
- Set a repayment reminder. It’s easy to forget when life gets busy.
- Don’t borrow more than you can repay. Remember, this is a short-term fix, not a long-term solution.
- Go with a licensed pawnbroker. They’re regulated under Australian law, so you have protection if things go wrong.
- Ask about insurance. A good lender will have full coverage for anything held in their possession.
So, is a loan on your watch a good idea?
That depends entirely on your situation.
If you’re facing a short-term cash crunch, don’t want to sell a prized possession, and can comfortably repay within a few months — it can be a clever way to unlock value.
If you’re uncertain about repayment or attached to the watch emotionally, think twice.
Either way, it’s worth knowing that this option exists. You never know when that old timepiece tucked in your drawer could become your financial safety net.
Final thoughts
The world of luxury assets is evolving fast. Watches aren’t just about craftsmanship anymore; they’re quietly becoming part of the personal finance landscape.
I didn’t expect to finish this piece with such appreciation for the idea, but here we are. Sometimes the things we wear tell more stories than we realise — and occasionally, they help us write new ones.
So next time you glance at your wrist and admire that ticking masterpiece, remember: it’s not just keeping time. It might just be keeping options open, too.