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Rolex Watches as an Investment Strategy: Better Than Gold, Stocks, or Real Estate?
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by Maison Montres
Real estate, stocks, and gold are likely your first point of call if you hope to make a sound investment that will reliably pay off in the future. You may also consider cash, high-yield savings accounts, short-term certificates of deposit, and even cryptocurrency.
What about watches?
People have viewed watches as investments as well as status symbols since the first portable timepieces appeared on the market in the 16th century. If timepieces don’t appreciate, they at least hold their value. Having said that, it is easier to see a luxury watch as a legacy to pass onto the next generation or a piece of portable wealth to hold onto in case you face hard times than as a viable investment strategy.
Are you missing something? Could luxury watches, and specifically Rolex watches, offer a more viable investment strategy than gold, stocks, or even real estate? How has the secondary market for Rolex watches changed over the last few years?
What Makes Rolex Watches Such a Reliable Investment Strategy?
Data from Business Insider and the Pre-Owned Rolex Exchange platform Bob’s Watches reveals that Rolex watches predictably appreciated in a way that stocks and real estate simply didn’t from 2011 to 2016. Gold was by far the least profitable investment during this time.
Something changed between 2016 and 2020, when investing in the Dow Jones had a higher potential for profit — but Rolex watches continued to outperform both real estate in gold in terms of value appreciation. The advent of the Covid pandemic altered the picture once more, making Rolex watches the most dependable investment. Investors believe this trend is there to stay, but even if it isn’t, you’ll never have to sell a Rolex for less than you paid.
Why? Quality isn’t the only piece of the puzzle. Supply and demand also play a key role. Rolex manufactures around 80,000 watches every year, and potential buyers have to place themselves on a waiting list before they can take that sought-after timepiece home. Some wait as long as two years before that much-awaited event, while others struggle to find an authorized Rolex seller in the first place.
It is not surprising, then, that there is a booming secondary market for Rolex watches. The Rolex you dream of owning could be worth thousands more by the time you get your hands on it. Such is, for example, the case with some Rolex Daytona models. The Rolex 116500 retails for $14,550, but WatchCharts tells us this luxury timepiece is worth a whopping $29,808 on the secondary market. Some Rolex watches double in value on the day they’re bought.
The launch of the Rolex Certified Pre-Owned program ensures that discerning investors never have to gamble — they know precisely what they’re getting and can count on the pre-owned Rolex they invest in to appreciate over time.
Global inflation is only set to make investing in Rolex watches more profitable. Where other go-to investment strategies are at the mercy of the brutal forces of the market, a Rolex is a portable piece of wealth that will remain stable over time.
Who Should Invest in a Rolex Watch?
Investing in a Rolex — or indeed several — is an overlooked strategy that can benefit anyone who is familiar with the pre-owned luxury watch market.
The reasons are clear:
- Rolex is one of the most iconic luxury watch brands. Recognized and valued globally, these watches are durable, reliable, and sought-after everywhere.
- Demand for Rolex watches consistently exceeds supply, with stainless steel sports models being one of the most popular. Not only can a Rolex appreciate in value the same day you buy it, the booming secondary market means finding a buyer will never be difficult.
- The Rolex Certified Pre-Owned Program ensures the authenticity of pre-owned Rolex watches sold on the secondary market, making buying and selling pre-owned Rolex watches less risky than ever.
- Rolex watches represent a tangible investment that is more portable than gold or real estate. These watches are not subject to the same market fluctuations as stocks or cryptocurrency.
- A Rolex is an investment you can enjoy on a daily basis without ever having to sacrifice future profit margins.
Rolex Submariner, Rolex Oyster Perpetual, Rolex Datejust, and Rolex Air-King models are among the better Rolex watch models to invest in. While those who buy brand-new Rolex watches can expect to enjoy excellent profit margins, investing in a certified pre-owned Rolex on the secondary market is also a sound decision.
A Rolex is never just an investment, of course — it remains the world’s classiest watch. This is why, in addition to researching the best models to invest in, potential buyers should consider their personal preferences and buy the Rolex they fall in love with. Sometimes, the best investments have a funny way of becoming personal fashion statements.
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