Rolex as a financial investment....

[Jerome W]

On Average, most models on the used market, follow the price rising of the new market, around 10 % each year.
Not bad in today's markets.
Did you ever think of Rolex as a financial investment ?

[Jerome W]

BTW I just bought this one :

GMT Master 16700 / 1991 :



A classic I've been thinking about since more than 20 years....

4500 euros today with papers and box, 1 year warranty by Rolex, completely polished and looking as new.
And the prices are getting higher and higher...
I remember this wast costing less than 2000 euros new in 1991. Talk about a good investment....

[Portugal]

Not sure it is an investment but for sure, these days, one can buy and use a very nice watch for next to nothing as it will hold its value.

[GaryProtein]

It may hold its value, but it isn't an investment.

Adjusted for inflation, the $2000 watch will go for about $4500 22 years later.

If you like it, buy it, but don't expect a return on the purchase--especially if YOU try to sell it.

Jewelry has four values. MSRP, retail/street price, wholesale and estate values. Unless you are in the business, you are going to get estate value if you try to sell your old watch because it will be likely bought by a wholesaler/broker who has to raise the price again so he can make a profit when he sells it retail.

[Jerome W]

Originally Posted by GaryProtein

It may hold its value, but it isn't an investment.

Adjusted for inflation, the $2000 watch will go for about $4500 22 years later.

If you like it, buy it, but don't expect a return on the purchase--especially if YOU try to sell it.

Jewelry has four values. MSRP, retail/street price, wholesale and estate values. Unless you are in the business, you are going to get estate value if you try to sell your old watch because it will be likely bought by a wholesaler/broker who has to raise the price again so he can make a profit when he sells it retail.

Gary,
True : not an investment in the sense that you do not "earn" money, but like McIntosh, it keeps its value. Many placements can do less than inflation in 10 to 20 years.
As Pedro said, you can wear it at no cost indeed.

[AudioNut]

I bought my first Rolex - An Oyster Perpetual Datejust, Steel & Gold - in 1980 for the, then, retail price of $1850. (U.S)

Today that watch retails for $10,300. Maybe not an investment, but it surely feels good wearing a $10K watch that I bought for less than two grand!

Man, Rolex's price increases have surely been a lot greater than pure inflation:

What cost $1850 in 1980 would cost $5074.99 in 2012.

[Jerome W]

Originally Posted by AudioNut

I bought my first Rolex - An Oyster Perpetual Datejust, Steel & Gold - in 1980 for the, then, retail price of $1850. (U.S)

Today that watch retails for $10,300. Maybe not an investment, but it surely feels good wearing a $10K watch that I bought for less than two grand!

Man, Rolex's price increases have surely been a lot greater than pure inflation:

Julian,
that was my exact feeling. It seems to that they go higher than inflation.
But we have to take into account the difference between the used and the new price.
A new SS GMT for example costs today around 7000 euros. Less than 2000 euros in 1990. Seems to go higher than inflation to me....

[Maks]

I definitely don't consider any of my watches investments, though my DJII has been through a price hike since I bought it and I could likely sell it used for about what I bought it for new. I agree with the others, they maintain their value, but I certainly don't purchase any watches for investment purposes. You'd probably have to go into limited edition models of other brands and keep them unworn for that.

[GaryProtein]

Originally Posted by Jerome W

Julian,
that was my exact feeling. It seems to that they go higher than inflation.
But we have to take into account the difference between the used and the new price.
A new SS GMT for example costs today around 7000 euros. Less than 2000 euros in 1990. Seems to go higher than inflation to me....

That's mostly because with watches, Rolex (and other watch makers like Omega) charge $10,000 per ounce for the gold it contains.

A plain stainless steel Rolex follows inflation.

[DonBattles]

Originally Posted by AudioNut

I bought my first Rolex - An Oyster Perpetual Datejust, Steel & Gold - in 1980 for the, then, retail price of $1850. (U.S)

Today that watch retails for $10,300. Maybe not an investment, but it surely feels good wearing a $10K watch that I bought for less than two grand!

Man, Rolex's price increases have surely been a lot greater than pure inflation:

A Two tone Datejust from the early 80's has a realistic street price of $2500-2800 ranging from excellent to near mint condition. Far from the price of a new Datejust. Now I'm sure when you purchased it you intention was to wear it and enjoy it. I assume you've done just that which is how it should be.

Originally Posted by Jerome W

On Average, most models on the used market, follow the price rising of the new market, around 10 % each year.
Not bad in today's markets.
Did you ever think of Rolex as a financial investment ?

I've been collecting (buying and selling) watches for over 20 years and a watch is NOT a financial investment, period