For many people, buying luxury watches is more of a hobby, something you enjoy doing daily. But did you know you can turn this passion into something that gives a massive return? Rolex is one of the few brands known for their immaculate precision and reliability in watches.
Due to its high brand reputation and recognition as a status symbol, Rolex is in high demand among collectors and brand enthusiasts. It allows you to invest in a Rolex and get a substantial return.
Still not convinced? Let’s explore further and find out the top five reasons Rolex is a good investment and can yield a substantial return through proper planning.
Rolex Vintage Models are irreplaceable
Rolex, founded in 1905, takes pride in creating some of the most elegant and classy watches of all time. The earlier vintage models are now available at auctions and collector sales at high prices, mounting up to $50,000 in some cases as well. Since these models are authentic but not in production anymore, a true Rolex aficionado will be willing to pay good money for it.
When investing in vintage Rolex models, look for products that come with the original box and paperwork that guarantee the authenticity and purchase price of the product. It will also fetch you a higher value.
Since vintage models are preowned, the watch may go through considerable wear and tear because of consistent use. So, the ideal practice of purchasing vintage is from a reputable seller in your nearby area. You can also opt for an online seller but it’s always good to engage with someone recommended by trusted sources.
Some Rolex vintage models to look for are:
- Vintage Rolex President 1802
- Vintage Rolex GMT-Master 16753
- Vintage Rolex Date 1503
- Vintage Rolex Submariner 5513
If you are young, you can also invest in a newer model and its value will only increase with time. Bring it up with your fiduciary financial planner
Production Quantity is Limited
Trust when people say that a Rolex is not for everyone. This comfortable but classic timepiece is mostly owned by wealthy individuals who don’t mind sparing a couple of grand for a watch. Most of their customers are middle-aged professionals or businessmen who value the importance of this brand.
Rolex produces around 1.05 million watches every year which is much less than the demand. We can call it the success of Rolex and the people who own the watch because collectors who were not able to get their hands on the latest models hunt for sellers and can match your demand. So, if you buy a newer model and put it up for sale, it will be easier to find a customer who matches your demand.
High-Quality Material
You might think that the high price of a Rolex is because of the brand image and its loyal customers, but the materials also play a pivotal role in deciding the price of the watch. When it comes to materials, every piece has its own concept and the product perfectly represents it.
Rolex watches are crafted from the following materials:
- Stainless Steel: Rolex is the first watch brand in the world to make 904L stainless steel watches. It brings a more lustrous appearance and a long-lasting, corrosion-resistant use. Also, it’s more durable.
- Gold: Gold watches are crafted with 18cc pure gold and a combination of other elements that only the Plan-Les-Ouates site in Geneva knows about.
- Rolesor: There are watches made with a combination of gold and steel and Rolex has termed it as Rolesor.
- Cerachrom: Cerachrom is a ceramic material created through the complicated Physical Vapour Deposition process in a vacuum chamber.
- Mother of Pearl: An epitome of quality, class, and royalty, mother-of-pearl offers a unique texture and color that defines the work Rolex.
Rolex is Owned by Royalty
Rolex, an expensive brand, is owned by famous people worldwide. It is detail-oriented research work but if you get your hands on a Rolex watch that was previously owned by a famous person, it can be sold at a good price. Similarly, if the Rolex was worn by someone at an important historical event, it would also be an item in demand because of that.
To obtain such valuable articles, you might need to regularly explore online platforms like Craigslist or contact an auction to invest in the watch of your dreams.
Market Trends and Demand
The demand in the market for pre-owned Rolex watches has been consistently increasing. The most significant appreciation is most often seen with vintage watches, discontinued styles or limited edition models. The other two factors further making Rolex models highly sought after are their ever enduring popularity and scarcity.
Durability and Timelessness
Since Rolex watches are world renowned for their durability, therefore, this factor increases their investment value. In fact, if you maintain a Rolex with care, it will last several generations which makes a Rolex a tangible asset that can considerably appreciate over time. In addition to this, the timeless designs of Rolex watches help keep them desirable and fashionable.
Return on Investment
One thing that is crucial to understand when considering Rolex as an investment is the variability or returns. While some models may significantly appreciate in value, there might be others that will yield only modest returns. Various factors that can potentially influence return on investment are age, rarity, originality (without any unoriginal parts) and overall general condition.
Comparing to Other Investments
One thing that sets Rolex apart is that Rolex watches valuation can stay stable even in times of economic uncertainty in comparison with traditional investment options like real estate or stocks. Thought they may not be able to provide insane returns that you can get from some high-risk investments like Cryptocurrencies but they do offer a unique combination of potential financial gain and enjoyment of owning a Rolex.
However, investment in Rolex watches is not completely risk free. Two big risks include shift in market trends and unequal appreciation among models. Regular maintenance and insurance costs also add to long term costs of owning a Rolex.
It Might Get Scarce in the Future
Rolex is not planning to increase its production capacity anytime soon. It means that despite the growing demand, the product will be in short supply. If you invest in a Rolex today, customers and brand loyalists will reach out to purchase your product for the sake of owning a Rolex before everything is out of the market.
Because of the high demand, Rolex is known to increase the price of similar models time after time. So by obtaining a model that is currently available for a higher price than you already have for a lower price, selling the watch at a profitable rate that’s still less than market can help you find a customer quickly.
Rolex Watches That Can Bring Profit in 2024
Are you looking to invest in a Rolex? We have shortlisted some alluring models that will be expensive in 2024.
- Rolex GMT Master II — Sprite: This is a favorite for many. We can call it a showstopper or a head-turner — even for those who don’t like Rolex. The Rolex GMT Master II is made from stainless steel and has a sapphire crystal dial.
- Rolex Daytona: One of the classiest watches, crafted with meticulous attention, the Rolex Daytona is indeed an irreplaceable catch. Made with 18ct white gold and an Oyster bracelet, this watch is expected to be the rave in 2024.
- Rolex Submariner Date — Hulk: For all the classy people, the Submariner is the ultimate choice. Its vibrant green dial is the ultimate attention grabber given the value will increase over time.
Final Thoughts
Rolex is one of the most sought-after and well-reputed brands. Because of its growing demand, most people are considering investing in timeless Rolex pieces.
Rolex is in high demand because of their craftsmanship and attention to detail. It is expected that in 2024, Rolex will increase the prices of current models. Invest in a timepiece that you feel will yield the best return but dont forget to discuss it with your financial planner.
In conclusion, while Rolex watches can be considered as good investment option but they carry their own risks and considerations like any other investment. If you are a potential Rolex investor, you should do a through research and focus on only authentic and well-maintained pieces. A personal interest in horology is also recommended. By following a right approach, investment in Rolex watches can not only be financially rewarding but also personally fulfilling.
