IS A ROLEX WATCH MORE VALUABLE THAN GOLD, REAL ESTATE & STOCKS? (2024)
When it comes to investing in profitable assets that would pay off in the future, your first thoughts would probably be real estate, stocks, ETFs, Commodities like gold and even cryptocurrencies. But have you thought about WATCHES?
For a long time, so many people have viewed watches as merely a status symbol or as a luxury fashion statement, but that’s not true! Watches are actually profitable investments that have proven to appreciate in or hold their value for decades.
Now, I’m not talking about just any kind of watches, I’m talking about elite timepieces like the “glorious three”- Rolex, Patek Philippe, and Audemars Piguet, especially the Rolex! Vintage luxury watches have proven to hold their value through generations. We’ve seen these coveted timepieces sometimes passed down as a legacy to leave to the next generation or a piece of transportable wealth to hang onto in case of financial difficulty.
According to Business Insider, over the past decade, the value of investing in a Rolex has outperformed that of other assets like gold, real estate, and the stock market, and this is because these watches are not subject to the same market fluctuations that affect other assets.
But, how does Rolex achieve this? Simple! Demand and Supply.
Every year, Rolex produces about 800,000 watches, and prospective customers must join a waiting list in order to purchase the sought-after timepiece. This “waiting list” can be as long as two years and this does not include the time taken to find an authorised Rolex seller in the first place.
Rolex is relatively affordable compared to a Patek or an Audemars- which sell for as high as an average of $30,000, but vintage Rolexes like the GMT, Submariner, Daytona models, sell for an average of $11,000. Despite this, the Rolex remains the most sought-after timepiece and due to its popularity, their demand always exceeds supply which leads to a substantially robust secondary market for pre-owned or vintage Rolex watches.
In fact, the Rolex you dream of owning today could be worth thousands more by the time you get your hands on it as some Rolex timepieces have been shown to increase in value by twofold on the day they are purchased. For instance, the Rolex Daytona 116500 retails for $14,550, but according to WatchCharts, this expensive timepiece is worth an astounding $29,808 on the secondary market.
So yeah, buying a pre-owned Rolex might even do you more good than buying a new one. If you’re worried about authenticity, the Rolex Certified Pre-Owned Programme guarantees the authenticity of watches sold on the secondary market.
However, owning a Rolex can only be advised to anyone who has an already profitable investment portfolio and not for a beginner with little cash to spare. If you’re looking for an asset to add to the asset mix of your already existing robust portfolio, buying a vintage Rolex is not a bad idea, because you get a luxury fashion statement and a valuable investment asset in one.
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When it comes to long-term investment strategies, bonds, stocks, gold and real estate often come to mind. However, over the course of the last decade, Rolex
Rolex
Rolex SA is the leading luxury watch manufacturer in the world producing over 1.05 million watches that generate sales of over $13 billion dollars in 2022. The Swiss based Company manufactures, services, and distributes wristwatches under the Rolex and Tudor brand through authorized dealers.
"If someone's worried about ongoing inflation, gold might be a smarter bet than luxury watches. Gold has a long history of holding its value when prices rise, acting like a safe haven," says Aron Solomon, chief strategy officer at Amplify, and a co-founder of Mission Watch Company.
While prices for pre-owned Rolex watches have been declining this year following a peak in the spring, their long-term investment returns still stand the test of time, experts say.
Luxury timepieces are much more liquid than real estate and can be easier to sell than a property. This can provide a quick source of cash if needed. Real estate, on the other hand, may not be as liquid, but it can provide a stable source of rental income that can be used to invest in other assets.
On the positive side, Rolex watches have a long-standing reputation for holding their value and even appreciating over time, making them a potentially profitable addition to an investment portfolio.
However, in the world of haute horologerie, there is another brand that often finds itself in the same conversation: Patek Philippe. The debate of Patek Philippe vs Rolex is a longstanding one, with both brands representing the pinnacle of luxury watchmaking, albeit with distinct philosophies and approaches.
Rolex watches appreciate in value over time. The older or rarer the collection, the more it'll increase in value despite being a Pre-owned watch. Unlike buying a new car or appliance that'll lose 20% to 30% of its value the moment you walk out of the store with it, a Rolex doesn't lose its value.
Pick Brands With a High Resale Value: Choose reputable brands known for retaining their value. Such as Rolex, Audemars Piguet, Cartier and Patek Philippe.
Several Rolex sports watches are known to consistently hold or increase in value. For example, the ever-popular Submariner is a good investment choice for its popularity alone. Easily one of the most recognizable Rolex watches, the Submariner is a highly coveted piece – especially on the secondary resale market.
It's harder to get rich off stocks than it is to get rich off real estate. The main reason why is due to the absolute amount of money you need to risk to get rich in stocks. Even if your $5,000 stock investment goes up 50%, that's only $2,500.
Stock investing may be a more effective approach for those wanting higher returns over a shorter period. Real estate may be ideal for those who want a stable flow of income and can wait to see a return on their investment.
Without exaggeration, the Rolex Daytona is one of the most coveted watches in the world today and is almost impossible to buy if you were to simply walk into a dealership.
Quality of the movement, quality of the case and bracelet, but also quality of the services associated with the watch over time. The philosophy of Rolex translates into peerless quality standards. This obsession with quality is driven by an unwavering philosophy: customer satisfaction.
If so, you may be wondering, do Rolex watches appreciate over time? You may be happy to learn that, generally speaking, yes, a Rolex watch will hold its value or increase in value over time.
Several Rolex sports watches are known to consistently hold or increase in value. For example, the ever-popular Submariner is a good investment choice for its popularity alone. Easily one of the most recognizable Rolex watches, the Submariner is a highly coveted piece – especially on the secondary resale market.
The liquidity and investment potential of Rolex watches vary significantly by model, condition, and market demand, positioning them as an alternative asset class that combines the enjoyment of luxury ownership with the possibility of financial appreciation.
As we do when considering the purchase of an expensive car, the likely resale value is rarely ignored. On average, Rolex watches command a 20.3% secondary market premium, while Patek Philippe watches sell for 39% over retail and Audemars Piguet models can be resold for with a 14% return.
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