There's no denying that luxury Swiss watches are some of the best looking timepieces you'll ever see, and everyone knows about the Swiss legendary quality. But not as many people realize that luxury Swiss watches can be a valuable commodity in your investment portfolio as well. Here's why:

In a market where battery-operated digital watches are the norm, there is still room for the ageless quality of luxury Swiss watches. With many models being produced in 14k Gold and even platinum, the precious metal value alone of a luxury Swiss watch is enough to propel it into the category of an investment. But melting a luxury Swiss watch down for its metal value is the last thing you want to do.

Because these watches do virtually last forever, their value increases as they age. Take the 1933 "Henry Graves" pocket watch from Patek Philippe that sold at auction for U.S. $11 million in 1999, or the same company's 1939 "World Time" wristwatch that brought in an amazing $4 million in 2002. While there is no guarantee that a luxury Swiss watch purchased this year will fetch those kinds of prices in the future, you can bet that the watch will nonetheless be worth more as every year passes. You can't say the same thing about a Mercedes Benz or a Lear Jet, that's for sure.

And while it's the reputation for quality that luxury Swiss watches enjoy that attracts some buyers, others are lured in by accouterments such as diamond-encrusted bezels and the use of other gem-quality stones on both the inside and outside of the watch that also fuels their value in after-market sales.

Forget about investing in Gold or other precious metals. Even at U.S. $700 per ounce, you'd have to buy a lot of gold to realize the $11 million that the owner of that Patek Philippe pocketed. Savvy investors who are looking for the next big investment trend are taking a serious look at vintage luxury Swiss watches. In the world of watches, the term "vintage" is applied to any mechanical watch that was made prior to the 1970's when quartz watches took over the market. The more "vintage" a watch is, the more collectable it becomes.

The market for new, vintage and even antique luxury Swiss watches is growing bigger every day. There are even newsletters and web sites devoted to buying and selling investment-quality luxury Swiss watches and the asking price can rise as quickly as a hot stock can depending upon the number of bidders and the scarcity of the watch.

If you're looking for an interesting and history-rich way to add value to your investment portfolio, or you're simply dying to flash a solid gold "real" wristwatch to your friends and co-workers, there's no better way than to buy one or more luxury Swiss watches.