Its ok to pay more for something when it results in more pleasure being derived directly from its function or its form. Not just becuase you want to look like a billy big balls to other humans.
And who exactly is the one that gets to decide which of these cases apply? The owner or observer?
And here we come to the real problem, people might have tastebuds firmly wedged up their arse and buy truly horrific shit (such as the shite that passes as a light fitting these days) but does that make them bad people simply for having different tastes to you? Or does it come back to money and the sense of entitlement some people feel they have in telling other folk how they should be spending it?
As for investing in a watch, invest away. If it does better than a savings account then you would be stupid not to, it isn’t like the fabric of your watch can collapse overnight unlike the fantasy of your savings (£80000 fcs compensation notwithstanding). At least with a watch you have something tangible to hold on to should the worst happen knowing that at least someone, somewhere in the world will give you a few sheckels for it unlike a wheelbarrow full of Reichmarks. Even if it never appreciated in value you would still be better off.
As for art, don’t get me started on that pretentious bollocks (liking different things shocker…)