Picture the scene: A prospective seller has brought in a vintage watch for appraisal. They take it to a recognized expert who offers a well-informed (and neutral) perspective on what price it should fetch at auction. Looking to the future, they'll consider the rarity of the watch and therefore how much more of a premium it will command as the supply diminishes over time. Scarcity drives value upward. You can consider this an estimation of growth in value, or future returns. Looking at the present, they'll consider the specific history and condition of the watch, and ' with those factors in mind ' how it compares to similar watches that have been sold at auction recently. You can consider this as an estimation of value through comparison. Finally, looking to the market, they'll consider the trends. Does the watch represent a particular style or category that is popular at that moment in time' Have there been recent events that may spike interest or attention for watches of that type'...
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