[sometimes_all]

There are many justifications of Veblen goods, some sensible, many not so much. It's psychological; you need to have a justification to spend non-trivial amounts of money.

Some reasons I've been told why people buy luxury watches, outside of the status symbol ones:

1. As discussed, good watches tend to hold / increase their price as time goes on. This leads to the second point: people who can afford to buy a fancy watch likely have a lot of money in mutual funds/other financial instruments anyway, so a Rolex becomes "diversification" for less-rich people and a curio for the more-rich

2. People want an heirloom to give to pass on to the next generations. I've seen watches three-four generations old. In some circles, the older the watch, the more prized it is; a favorite grandchild might get your best watch. It represents the family's continued success

3. "If you are attacked on the street, you want to be able to give something to the robber so he can leave you unharmed" (never mind the fact that you probably got robbed _because_ you wore the Rolex)

Personally speaking I find many of the justifications hilarious, but this kind of thinking regarding luxury has been going on for centuries, so what do I know.