Investments in Rolex Watches Beats Homes, Gold, Dow Jones Common

  • Rolex watches have lengthy been a favourite amongst collectors — seems they seem to be a good funding, too.
  • New information from Bob’s Watches exhibits Rolex outperforming gold, homes, and even shares.
  • Amid surging world demand, even entry-level fashions are actually price greater than their retail value.

Again in 2011, if you got the selection of a 50-gram bar of gold, a $5,000

index fund

invested within the Dow Jones Industrial Common, or a Rolex Submariner, which might you decide to be the perfect funding?

Should you selected the Submariner, you’d have come out forward, based on new information from Bob’s Watches, the main reseller of Rolex watches.

For the previous decade, Bob’s has been shopping for and promoting hundreds of watches utilizing a constant pricing technique that has given the corporate distinctive insights into the true market worth of each Rolex mannequin.

“We’re the one firm that may return and seize ten years of information,” CEO Paul Altieri advised Insider.

Rolex reportedly makes about 800,000 items annually, however the recognition of the model means demand vastly exceeds the provision of recent timepieces, resulting in a strong secondary marketplace for pre-owned watches.

And world demand is selecting up.

“Rolexes have been funding over time, however not just like the final 5,” Altieri mentioned.

Certainly, the gross sales numbers for Rolex on common exhibits an uptick starting in 2017, adopted by an excellent sharper bump up in 2020. Now the common Rolex value is greater than $13,000 — practically thrice the 2011 common of $5,000.


Whereas the worth roughly tracked the efficiency of the Dow Jones Industrial Common, Rolex pulled forward previously 12 months. Different investments like gold and actual property (as tracked by common house value) have been nowhere shut.

However even at these elevated costs, Altieri nonetheless maintains that Rolex is a “comparatively inexpensive luxurious,” particularly when in comparison with different Swiss manufacturers like Audemars Piguet and Patek Philippe, which routinely go for properly north of $30,000.

The closest Rolex providing to that echelon is the Cosmograph Daytona, which is now price greater than $31,000 on common within the secondary market, although it sells at retail for roughly a 3rd of that value.

“Earlier than you permit the shop it is price double or triple what you paid,” Altieri mentioned.

And that is in the event you may even discover a certified seller who will promote it to you.

“Individuals have waited a 12 months or two for his or her identify to come back up on the patrons checklist — they don’t seem to be going to flip it,” Altieri mentioned.

When it comes to sheer quantity, the basic metal Submariner is way and away Rolex’s hottest line, and its value efficiency has largely tracked with the general model common.

Nonetheless, the frenzy over the model has additionally given a raise to what is likely to be thought of entry-level fashions, such because the Date and Datejust, which for the primary time are price greater than their retail value on the secondary market.

Though previous outcomes are by no means a assure of future efficiency, it is cheap to anticipate that these value traits might proceed, given the constrained provide of recent product getting into the market.

The present whole worth of the pre-owned luxurious watch market is estimated to be price $20 billion, based on a report from McKinsey, and is predicted to prime $29 billion by 2025.

Altieri mentioned that whereas inventory market index funds will seemingly proceed to be the prudent, secure selection for investing, they don’t seem to be all that attention-grabbing to personal.

“Most individuals have by no means even seen a share of inventory, a lot much less held one,” Altieri mentioned.

A watch, he factors out, is at the least one thing you’ll be able to contact day by day.

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