If buying real estate is all about location, location, location, buying a watch is all about provenance, provenance, provenance. From whom you buy your watch is a crucial decision and I would suggest singling out brands with solid reputations and a history that spans at least a couple of decades. When it comes to mechanical watches, the Swiss have fought long and hard to defend their corner and still rule the roost in terms of quality and prestige. Whether you buy directly from the brand’s boutique or an authorised dealer, be sure to discuss all aspects of after-sales service and the terms of the guarantee.

A watch has to seduce you on many fronts. In addition to the action under the hood, a watch is an emotional purchase and tells the world who you are so make sure you fall in love with the external attributes. Try it on for size and look at yourself in the mirror. Does it suit your wrist size? A large watch on a small wrist doesn’t look good, nor does a tiny watch on a hulking wrist. Feel the weight of the case and run your finger along its contours of the case. Is it well-finished and smooth or can you feel edges that might catch on your clothes? When trying on a chronograph, for example, make sure the pushers don’t dig into your wrist.

Mechanical watch movements are miniature technological marvels made up of hundreds of tiny parts that work in unison. Powered by the synergy of your wrist movements – as is the case with an automatic watch – or by being wound on a regular basis, mechanical calibres will hold their value over a quartz watch. If you are investing in a high-end luxury watch, take time to find out about the movement. Is it an in-house, manufacture movement – i.e. made by the brand – or has it been sourced from third parties? In-house movements tend to command higher prices so don’t turn your nose up at movements from reputable Swiss movement makers like ETA.

Beyond the classic trilogy of gold, platinum and stainless steel, the market is brimming with new high-tech alloys for watch cases. Richard Mille has taken materials to a new dimension, producing ultra-light watches for tennis ace Rafa Nadal and this spectacular watch in rose pink sapphire crystal for women. This, again, is a matter of personal taste but one thing to avoid is gold-plated cases, which do not stand the test of time as well as the real thing. Always choose sapphire crystal glass over mineral or acrylic to avoid scratches on the protective glass covering the dial and, very often, the caseback. Another material matter you might want to consider is luminescence. Do you want to be able to consult your watch at night, underwater or in a dark environment? If so, ask your retailer if the watch comes with SuperLumiNova.

Don’t be misled. If a watch claims water-resistance to 30 metres, it doesn’t actually mean you can go scuba-diving in it; at the most it will accompany you in the shower. Today, there are many watches that will cover your recreational diving needs, with water-resistance from anywhere between 200 to 4,000 metres. But if you want the real deal for professional diving, your watch will have to have passed the stringent requirements of ISO standard 6425.

Think of buying a watch like buying a car. You wouldn’t set out on a spending spree without an idea of what kind of car you wanted  – a 4×4 or a coupé, say – or how much you are willing to spend, so apply the same rule to watches. Make sure you are informed, consult a watch glossary, visit lots of websites and consider all the things to look for in a luxury watch before hitting the shops. However, just like a car, most watches will devalue as soon as you strap them on your wrist so be sure to get it serviced regularly. If, however, you are hoping to invest in a watch that will maintain or even increase its value over time then you are almost certainly looking at rare, limited-edition and extremely expensive collector’s watches from brands like Patek Philippe, Vacheron Constantin and Rolex, which are all top performers at auction.

Chocolate dial and 18ct rose gold case, Chopard’s L.U.C watch blends heritage with state-of-the-art technology (£17,110).

Only 3% of Switzerland’s watches are subjected to chronometry tests, so a seal vouching for the accuracy of a watch can be a plus for some buyers. The best-known seal of approval is granted by the Swiss Chronometer Testing Institute (COSC), which tests uncased Swiss watch movements for 15 days in five positions at three different temperatures, maintaining a daily error rate of -4/+6 seconds. The watch either passes or fails and, if successful, is declared a chronometer and features an engraved number on its movement and a certification number.