Visiting Jacob & Co. With Teddy Baldassarre - Hands-On With The World’s Most Expensive Watches

[Music] All right, everybody, here we are in a most remarkable place. We're at the headquarters in New York City of Jacob and Co. Now we've got Mr. Jacob himself here. This guy's a legend in the watch business. Why? Because he did a transition, a morph, if you want to call it that, from being a jeweler—a classic jeweler, very successful jeweler—into one of the world's premier watchmakers. But not just any watch. I call these pieces absolutely insane. These are off the charts. These are crazy, unbelievable movements. I mean, it's legend!

And I've brought Teddy with me because he is my grasshopper, and I have to show him new ideas all the time and bring him into the watch world in a big way.

Jacob: "Meet Teddy."

Teddy: "Hello, Teddy."

Jacob: "Pleasure to meet you."

Teddy: "Yeah, good to see you too, sir."

Jacob: "So the reason we're wearing these gloves is these timepieces are incredibly rare, incredibly expensive, and we're going to take you on a journey for collectors. When you found all you want to buy of Rolex and all the Pateks you need and all the APs you've got and you have every Zorn, that's when you hit Jacob because there's nothing like this on the planet. So let's start the journey together. Why don't you walk us through your move into Jacob? And I want to say something. I have two on my wrist. This one is the first watch he ever made, my favorite of all of his watches. His entry-level watch is a painting outside the office with this on it everywhere. I wear this, people say, 'What the hell is that?' Really tell us about this!"

Jacob: "Yes, so this is called five time zones. It's five time zones watch. It's the very first watch I designed. When I drew this watch on a piece of paper, people throw them funny. This is a Mickey Mouse watch, but I said no. We love, I love the colors, I love this beautiful color because I could wear— I would supply four bands for the watch. Nobody did that before. Red band for me, of course, red. You had yellow, blue, you know, whatever colors was in the face, you had those colors in the box. What was in your head designing that dial?"

Well, that's a fun watch; to have something fun and tell you five time zones because, at the time, 2001, a lot of people were moving around the world for, you know, whether they're doing shows or TV shows or musicians or sports people. So they want to know what time is it in Japan, yeah, Tokyo? What time is it in L.A? What time is it in New York? I actually, these are big enough to actually see the time, and it's one of my most precious watches in the sense that I actually use it for that reason when I travel. Plus, it's a lot of fun.

Teddy: "What do you think, Teddy? When you first saw that, how nuts is that?"

Teddy: "It's very unique. It's very different."

Jacob: "Question for you, so when you had this reputation as a jeweler, what allowed you to push forward? Was it your own just personal pursuit, or were you also getting a lot of requests from your clientele that you wanted to move into watches? How did that work?"

Jacob: "Well, since I become a jeweler, I always wanted to make my own watch. I'll tell you why. When I was 13 years old, my father gave me a watch as a gift, and I still have it, and it's really touched me, you know? And it was so special. This watch was not that expensive. It was dual time zone, two mechanical movements, simple, with the world that I could show. I think I have it here even, like to show it to you. So I always wanted to become either a watchmaker or make my own watch, right? And when the time came, the right time— not that I had requests or anything—I already had a successful jewelry business. I said, 'Now is the time for me to design my first watch.' And it was not easy. It's very challenging to go to Switzerland to have to convince someone to actually make your watch. You know, it wasn't easy. And here it is."

Teddy: "Yeah, yeah."

Jacob: "That's why it's legendary for me to be the beginning of a trend, of a movement of a big brand that's developed this way. But let's get into where you went because these pieces, particularly some of the ones we're going to see, are just—they're almost imaginary watches."

Teddy: "Yes, to get designers to make these things, it's just pushing the status quo of what is possible for watchmaking. In a lot of ways, unconventional, going against the norm."

Jacob: "Yeah, so let's start with something that you're really proud of."

Jacob: "I am very proud of everything in this box. A little bit of, okay, pull some out of each. Let's get to the hardware here. We can start from very first complication that I did. You know, I always wanted to make something never been made before. You know, I always saw this guy. Where did you get this idea of giant size? I mean, these are big statement pieces."

Jacob: "Well, some of them are big, and some of them are smaller. But to me, because I always look at on my wrist, and I have a big wrist, and I kind of make a watch for myself first, and you see who follows. Yeah, and then I see maybe there's a few more people who would like it, you know? So this is first, very first in the world made 31-day power reserve—31 days. So all the month, all of those are barrel stacks. So you have, how many barrels are stacked specifically on top?"

Teddy: "I think there's a seven, but you have here 31-day calendar."

Jacob: "Wow! And this is the time zone? I mean, I've never seen a movement like that, and it's most important."

Teddy: "Yeah, yeah, it’s like that. Just feel the weight of that. That's in white gold. This also comes in titanium; that's very light. White gold, wine through these little flaps on the side. And then you also have, now again, no one ever did vertical turbine. This was very first vertical turbine."

Teddy: "It's pretty cool, right? I mean, that's just—I mean, that's right off the charts. I mean, nobody was thinking that way when you brought this to the market. This was a success."

Jacob: "And what do critics say when they showed up with something like this? Like, 'Wow, what's that? Looks like an engine of the car. What is it?' And the idea came from very simple places. Like, you see this, um, barrels when I was a kid, we had this electrical meter, you know? Yeah, that’s where I got the idea. It was identical as this, so I took the idea and put it in here. I mean, that piece is absolutely stunning, and at the time, when I made the 31-day power reserve, the most power reserve was 14 days by IWC. Well, you have enough room in that thing—it's a tank. It's a tank. It's a tank."

Jacob: "All right, something else, different direction, right? So next after that, I will introduce you to, let's see, the next important piece I designed was Astronomia."

Teddy: "Astronomia? This is legendary too! You've heard about this?"

Jacob: "When I think of Jacob & Co., I think of the Astronomia first."

Teddy: "Yes, this is really what puts you on the map."

Jacob: "Yes, I mean, it's just—it’s 3D. Yeah, this is the one where people said, 'Who is this guy? What is he doing? What the hell is that? What's going on here?' I took a big chance."

Teddy: "No kidding because when you develop things like this, it may not work."

Jacob: "You know, it physically may not work. Yeah, because you could plan it, you could develop it, and you could build it for three years, and then in the end, it's just not workable. So I took a chance, and we developed this whole system where you have—you know, the whole movement actually rotating. This became your signature look. When I see this piece on people's hands all around the world, I know exactly what I'm looking at. Nobody else makes pieces—not this. Teddy, look at this! This is incredible."

Teddy: "You know, I wanted to look to make it perfectly rounded, and it's incredible."

Jacob: "That's crazy! I mean, this slowly—this is a breakout watch in my view because it kind of made you who you are in the watch space. And then you started doing, you know, some differentiation from that, including this latest thing we're looking at in a minute. But that is, I think, incredible."

Teddy: "Shortly after this, I designed this watch where it's much more complicated than Astronomia. It's a sky Astronomia has three more functions and three more complications."

Jacob: "It has [Music]. It's just I made it a little bit smaller. If you see, it has the DNA of this piece."

Teddy: "Yeah, of course."

Jacob: "Yeah, it's got this running seconds as one of the arms, right running seconds. You have the globe on top that's showing you night and day—it's 24 hours. Then you have the whole movement again moving all the way around for a 10-minute revolution. You have the Moon that does 60 seconds as well, and you have the turbine case that's also 60 seconds on the outside. That's the most important part in the sky—it's a sea drill calendar that's usual calendar, accurately showing you stars above yourself. So the sigil dial, the bottom blue plate with the stars, it takes one year for full rotation."

Teddy: "Yes, exactly, one year. That's how slow it goes. So that's the complication of this watch, and no matter how much this rotates, the time is over showing correctly the dialogue."

Jacob: "Let me watch like this. Do you go to the designer and say, 'Here's what I'm envisioning?' You design it, you put—"

Teddy: "I design it, and my engineers make it, then try to make it work. Yeah, you know, there are times that my ideas cannot be working. I just say, 'Okay, that's enough.' I mean, yeah, we'll spend six months, we'll spend a lot of money on this. Do you want to continue? And then I push, and push, I push, and then the—"

Jacob: "Fence."

Teddy: "All right. Next, next interesting piece after this we designed, Twitter referees. There's a watch behind you, actually."

Jacob: "Yeah, I love this watch because, again, never been made before. The reason I'm showing you with diamonds is I don't have any other ones in stock right now. This watch has 920 components. Let's talk about price on this one, Jacob. What does this cost?"

Jacob: "Doing the diamonds is 1.3 million—1.3 million. That's what we're talking about here. That's what we're talking about. I mean, anybody that's going to spend 1.3 million loves the piece, is a major collector, understands the vision of this piece, and obviously this is a showcase monster. I mean, you're walking in with a piano on your wrist here—920 components, yeah, two triple X turbines, power reserve from the bottom, power reserve, minute, repeat, repeat it morning chronograph, pit board— you can go on—and I don't know, it's so complicated on the slide, do it, come on, pull it, push it now."

Jacob: "For your protection, it takes time. Look at that. You hear me? There it is! Beautiful!"

Teddy: "Yeah, you have to, fantastic."

Jacob: "Yeah, it's singing a song. That's fantastic! And that's only 2:30. Now, if you put it like quarter to 12, you'll get a lot more."

Teddy: "Yeah, that's crazy! And monopusher chronograph— you want a pusher chrono? Take a look at the back of the finishes of the movement, please. It's a piece of art. This is most difficult to do due to finish every bridge—bring another one?"

Jacob: "Yes, sir. So the link goes on. The next proud piece we could show you would be shown is partnership with Bugatti, as you know."

Teddy: "Yeah, this is the famous Bugatti piece."

Jacob: "Yeah, this is a secret cylinder. Yeah, this is crazy because the way I designed this is I wanted to put the engine inside."

Teddy: "So what, crown operates the pistons?"

Jacob: "Is it right? This is like a start button. Just press it once, and you'll see it works."

Teddy: "Yeah, it's crazy! So it actually combines—this is another kind of— you know, I saw this first in Dubai, I think, and watch week, I think the first time everybody's talking about this."

Jacob: "I mean this is a branded relationship with Bugatti."

Teddy: "Yes, it's a branded relationship. They're very pleased with what we're doing."

Jacob: "I mean, and crazy! No, and from an engineering perspective, this is remarkable. No question about it, thank you. That's another kind of Jacob, you know, pillar. This piece was really well received."

Teddy: "Was it crazy?"

Jacob: "Yes, and like I said, I only make things that I love myself. So look at that, and this is a sapphire version."

Teddy: "Yes, this is our proud sapphire rare version. It was so difficult to make because, as you can see, it's one solid piece."

Jacob: "That's incredible! Most of the sapphire crystal watches are made by sandwich, like several layers; much easier to do. This is what's most difficult. I even regretted that I did because it was very difficult. The price on these, it's one solid piece. The gold version goes to a 380,000—380,000—and the sapphire, 1.3 million."

Teddy: "Wow, yeah, 1.3 million! Yeah, Teddy, if price was not an object, what would you take of these two?"

Teddy: "Probably go with gold. The gold looks beautiful."

Teddy: "Yeah, gold. It reminds me of the car itself, no?"

Jacob: "Yeah, never! Dynamic line—this, I mean just seeing how that emulates like the pistons on an engine. I'm not even a car guy, and this is fascinating to watch, actually!"

Teddy: "Yeah, this is, this is—yeah, the collection will be sold out very soon, but I think the first two quarters in 2023, it will be all delivered, and then we're gonna start a new project."

Teddy: "So when people—relationship with a customer, do they come with— customers are more like 'Hey, this is what we're producing.' You have standard production pieces, but I imagine there's a lot of projects that you walk hand in hand with a customer on too."

Jacob: "It's really, really that it works with the customer and consumer. I'm mainly design, manufacture, and deal with distribution. But some of them, people that I know close enough to me that I do business with—yes."

Teddy: "Let's see another one."

Jacob: "So the next big piece, this is interesting. Then we decided to do something out of the ordinary. Very understanding, I mean that is just—you know, like in 2016, I think of 17, I was kind of bored and I said, 'You know, I'm going to Boston show; I don't feel like I have enough to show.' So I told my team, 'We're gonna build a watch that's gonna be called a billionaire.'"

Teddy: "So, what is a billionaire?"

Jacob: "Yeah, the billionaire. So this is billionaire—the name is billionaire. So the first watch, I mean built, I built it for the show. It was an 18 million dollar watch."

Teddy: "What is that, the price of this?"

Jacob: "No, this is three million. So imagine the 18—it had large diamonds, same with the watch; it was the same size more or less, just much larger diamonds. So instead of one block of diamonds here, the several was one big one—so big stones, although that's what made the price."

Teddy: "Yeah, so we made this watch, and it made so much noise, so much publicity in the Basel show. Of course, my whole team thought I'm crazy making that watch, but then in the end, they realized it was worth it."

Teddy: "Did it sell?"

Jacob: "Of course! Somebody has it!"

Teddy: "How many diamonds are we talking here in the setting?"

Jacob: "This one has 170 carats. It's not just diamonds, you know; it's not so easy to just put together. Every stone has to be cut specially to fit in this."

Teddy: "This is blending your history as a jeweler extraordinaire with the watchmaker extraordinaire coming up with something just—I mean, what can you say about this? There's no description?"

Jacob: "So you have like a bigger than life—yeah, see, is it a white gold backing to this that sets all the stones? Is that how that works?"

Teddy: "This is etch each part?"

Jacob: "Yeah, yeah, each link is connected, of course."

Teddy: "Yeah, yeah, the stones are set on them, and you almost have to design it for the wrist that it's going on because—"

Jacob: "Yeah, I mean, that really is—I hope the camera will be able to photograph this without burning the lens off. It's like looking into the sun!"

Teddy: "Yeah, it was just! That's right! That's everyone who buys it, you know. This is a limited edition of 18 pieces of that."

Jacob: "Yeah, everyone who's buying a bottle is super happy with it."

Teddy: "All right, keep going! That's just right. It's not for everyone."

Jacob: "No, no, definitely not. I mean, then, we have Epic X. This is simpler watch. This is more for someone who doesn't want to spend a lot of money. It's a simple balance wheel, skeleton watch with rose gold or titanium. Usually, it comes nice, yeah, nice colors."

Teddy: "What's the case size on this?"

Jacob: "This is a 44 millimeter."

Teddy: "Okay, yeah, again, more toward the traditional motif, you know? The design shows you can go in both directions."

Jacob: "Yep, and then, of course, we wanted to have our regular chronograph watch. This is a 47 millimeter."

Teddy: "I recognize that."

Jacob: "Yeah, that's the one you're wearing."

Teddy: "Exactly, very products in different colors. Nice."

Jacob: "Hmm, so there's even moving more toward the classic sports piece."

Teddy: "Yeah, right, okay, let's keep going."

Jacob: "Yeah, then, we missed one more. We made—you know, when we made this, what I made the, um, Astronomia, then women want the gastronomy. But then I made a solar Astronomia."

Teddy: "Yeah, that's actually, that is very Tutti Frutti."

Jacob: "Yeah, it's Tutti Frutti, but the reason is because you have every planet in there, including the sun—solar system."

Teddy: "I do the whole solar system and fit it in that watch."

Jacob: "That's very approachable! What's the size of this case?"

Teddy: "43."

Jacob: "43? Yeah, and the price on this piece?"

Teddy: "348,000."

Jacob: "Yeah, I mean, it's the AR coating on that is also; you can—if you look at it, it's very—doesn't look like you can just grab that right now, right?"

Teddy: "You have the globe that's rotating; you have the whole bottom to rotating, and you have it's really nice tourbillon cage. This has to be very popular because it's approachable."

Jacob: "This is very, very powerful because men and women wear it."

Teddy: "Is your Astronomia your best-selling line? Is that what most people associate with your brand?"

Jacob: "Yeah, I would say everything sells equally, but actually normally though is your blowout!"

Teddy: "Yeah, that's what happened! I mean, when you brought that piece, people went, 'Who is this guy?'"

Jacob: "Even one Astronomia was sent to space, really!"

Teddy: "Yeah? We—there was the very first charter to space. Four men flew to space for 17 days. Each paid 55 million dollars to fly, and one of them carried my Astronomia watch. We have the videos in space how it's floating in the air! It's working; everything was working 100%. And when it came back, we auctioned it for a charity."

Teddy: "Nice! Yeah! How many watches been to space?"

Jacob: "All right, before now, there's one more in there, right? This is actually similar to what you're wearing. I wasn't sure you would be wearing yours, a regional. I want to start with that, but I'm featuring the red band version of this, but it's a different color, you know? The fact that it kind of started you in this business is why I love it so much, and it's a great conversation."

Teddy: "I was, this was really—that's very functional! Frankly, first of all, it comes also with diamonds, and it was really successful."

Jacob: "How many years ago was this, Jacob?"

Teddy: "2001."

Jacob: "2001. 21 years."

Teddy: "21 years. Okay, now let’s bring out the Big Daddy, last one. Let's talk about this piece."

Jacob: "This is the Godfather! You know, I always loved that movie. I'm sure you've seen it, right? Everyone, is it an Italian American?"

Teddy: "Of course! Did you see the latest one, The Making of The Godfather?"

Jacob: "No, I haven't."

Teddy: "Well, you should! It's called The Offer. Check it out. I don't know if you did, but I haven't seen it yet."

Jacob: "Please do because that shows you how they made the first three. And what is the inspiration then? You love the movie; how did you decide to design this piece? What were you going to put in it, and how did you get the rights of this iconic brand?"

Jacob: "Exactly! So, I was in Florence, but I always wanted to do something with Hollywood. You know, I wanted to be, you know, to do something in partnership or invest in a movie or become an actor or do something. So I was in this cathedral in Florence, and I walk here, and I hear The Godfather music playing. I said, 'What? Here in a cathedral?' Making the watch, I'm gonna make the idea inspiration right there! I will manufacture and design Godfather watch with the music!"

Teddy: "Let's talk about how many pieces you're making."

Jacob: "What there's—I contacted Paramount Pictures. They knew, they knew you by then; your reputation preceded you with these pieces?"

Teddy: "Yes, yes! And so you were able to negotiate the rights?"

Jacob: "Yeah, and then negotiated the rights. And how many are you making? So we have regular Godfather without the—this is the 50-year anniversary."

Teddy: "50-year anniversary?!"

Jacob: "50-year anniversary is because of the 50-year anniversary of Godfather. We made 50 pieces; price—price is 550,000."

Teddy: "550,000? Sold out?"

Jacob: "Yeah, they are sold out! Yeah, then we have ongoing collection—88 pieces in rose gold and 88 in black titanium. And that is still—you'll be making these for a few years; it'll take two, three years to finish the meal."

Teddy: "Oh, I can only make four movements per month, so to satisfy this whole collection, it takes time."

Jacob: "So you have triple axis tourbillon—630 components. And then could you play the chime for us?"

Teddy: "Sure! So, you'll have 600, yeah, triple extra—beyond this!"

Jacob: "This is why Lynn—this is how you wind the watch—it's rewinded! Yeah, music books, right? So let me put this back. You press this button through here, the theme—hold it up here!"

Teddy: "I mean, it just brings memories back for the first movie."

[Music]

Jacob: "So the rights to the music too?"

Teddy: "Yes, of course. You're playing! Everything rotates, and the whole thing rotates and still tells you what time it is—amazing! It's really something, it's so complicated."

Jacob: "I mean, okay, Teddy, which is your favorite piece? It doesn't matter on price!"

Teddy: "Yeah, let me face it your way. So what are you gonna do? I need like this at least, you know?"

Teddy: "This is a style that I—I mean, I'm kind of boring, you know? I'm more traditional, but either this or the Bugatti!"

Jacob: "Yeah! I would agree with you. The Bugatti is so unique, spectacular, and just eye candy to watch. The pistons are crazy!"

Teddy: "It's insane! But this is also really something else. It's so three-dimensional!"

Jacob: "Yeah, you see the crystal on the bottom; it's one ring. It's also never been made before—it's one whole sapphire crystal ring."

Teddy: "I mean, that is so Jacob. For a couple of years, the more complicated, the better for me!"

Jacob: "Inspired by impossible, that's fine! Do you agree with my paper? What do you think?"

Teddy: "I actually—I would really suffer between these two because I love, I love, I love the pistons. That's just—"

Jacob: "We'll get some close-ups of this, but yeah, there's nothing else like that in order. It's crazy! But this is also really spectacular. I like watches that my wife would want to wear. I mean, just so that you can share it together."

Teddy: "Yeah, I mean, that's like she's pretty compact. Look at that. I mean, it's basically just one circle, 43 millimeters; it's not that orange."

Jacob: "All right! And by the way, the way those stones are cut, we invented that! This is 288 facets on each stone—it's called Jacob cut. So it's our own pattern."

Teddy: "It's incredible! Where are the artists that do that, where they look—stones cutting?"

Jacob: "Yeah, some in Thailand. Color stones in Thailand, and then diamonds are in Israel."

Teddy: "It's amazing! This is only a couple of people who know how to do it."

Jacob: "Jacob, it's been an amazing journey! Thank you for your time!"

Teddy: "What have you learned today?"

Jacob: "This is a brand that I mean seeing some of these for the first time in person. So this is, I mean from an engineering perspective, even if the style is not for you, you have to absolutely give kudos to what's going on here. I mean it's so over the top. It's just—but it pushes boundaries, and I think partially if—hey, that's what watchmaking's all about!"

Jacob: "Yeah, it's fantastic! Thank you so much, my pleasure!"

Teddy: "And great, thank you very much for making time. Thank you, I'm here!"

Jacob: "Great to meet you! That is great!"

Teddy: "Thank you!"

Jacob: "All right, everybody, what a journey! I want to watch! I mean, this is why we do this so that you can experience these incredible moments from the Bugatti to this. I was just too crazy!"

Teddy: "Yeah, that's what it is! It's just too crazy! Thank you! Welcome again, until next time!"

Jacob: "Till next time!"