Luxury watches can be worth more than your stocks, your gold, your real estate: here’s how

“Rolexes have been a good investment over the years, but not like the last five,” Altieri noted, while adding that while prices remained high until early 2022, they then began to gradually decline ever since. .

Some watches can be a good investment. Most of you could make a profit when it’s time to sell a watch

– Paul Altieri, founder of Bob’s Watches

Are Rolex prices going up or down now?

In addition to peaking in March last year, prices for used Rolex watches have fallen, according to WatchCharts, which provides data-based analysis of the used watch market.

The average price of a second-hand Rolex watch has risen from under $5,000 (Dh18,363) in 2011 to over $13,000 (Dh47,745) by the end of 2021, according to a recent report by Bob’s Watches , with the average order price of Rolexes rising from $12,900 (47,377 Dh) in May to $11,000 (40,399 Dh) today.

On Chrono24, another online marketplace for luxury watches, 25% of searches on the site are now related to Rolex, indicating significant demand given the many other luxury watches out there. Additionally, 14% of watches sold by the online retailer are Rolex, and four-fifths of these are pre-owned.

In addition to peaking in March of last year, prices for pre-owned Rolex watches have fallen, according to WatchCharts.

Why are Rolex prices dropping now?

“The current Rolex price correction is partly due to the negative impact of the global economic downturn on consumer spending, while the reason for the rapid rise in Rolex watch prices in recent years is supply,” explained Ashique Abbas, sales manager at a luxury watch boutique in Al Ain, Abu Dhabi.

“Rolex makes almost a million watches each year, but the brand’s popularity means demand far outstrips supply for new watches, leading to a healthy appetite for pre-owned watches – and global demand is growing. now.”

Additionally, luxury market experts have also reported that because there were not enough buyers to keep up with the previously exorbitant price levels, prices for used Rolexes fell by around 20% in average since their peak.

The current Rolex price correction is partly due to the negative impact of the global economic slowdown on consumer spending

– Ashique Abbas, sales manager at a luxury watch boutique

How is Rolex perceived, valued as an investment?

Even at these prices, Altieri still maintains that Rolex is “relatively affordable luxury,” especially compared to other Swiss brands like Audemars Piguet and Patek Philippe, which regularly cost well north of $30,000 (Dh110,180).

Regardless of price, the value of the Rolex as an investment has outperformed other assets like gold and the stock market over the past decade, according to market research data. Rolex sales figures started to increase from 2017, followed by an even bigger increase in 2020.

While the price has roughly tracked the average performance of the global stock index, industry-wide market data indicates that Rolex has been ahead over the past year. Other investments like gold and real estate (as tracked by average house prices) were far from close.

The value of the Rolex as an investment has outperformed other assets like gold and the stock market over the past decade, according to market research data.

How does investing in a Rolex earn me profits?

If it’s high costs that’s kept you from buying those luxury timepieces, aside from the fact that those assets often only depreciate once purchased — like a new car or a diamond ring, here’s how you can still turn a profit when buying a Rolex.

“In order to make a profit, the key is to spot Rolex watches that are underpriced before they are discontinued and will likely be more expensive to acquire if you delay your purchase for another year,” Abbas added. . “So if the price of a favorite watch drops over time, it’s most likely an ideal long-term investment.”

Asked about last year’s sales, he said many of their customers had already purchased the Rolex watches they wanted to add to their collections. However, some are still waiting for their preferred price, while few others are still debating which models they want to buy.

In order to make a profit, the key is to spot Rolex watches that are underpriced before they are discontinued and will likely be more expensive to acquire if you delay your purchase for another year.

– Ashique Abbas

Buy a Rolex out of passion or investment?

Abbas personally believes that people should buy what they like and that personal preference should be the number one determining factor when choosing a watch. However, according to Altieri, watches can often serve as investments, and the potential future value of a watch is something to consider.

“Although most buyers will not buy a Rolex watch as an investment piece, it is important to consider value retention, whatever your motivation for buying a luxury watch. You want to be able to profit from a significant portion of your watch if you decide to sell it,” Altieri added.

“If a watch is rare, buyers would pay more for it. The price might go up if more people want to buy it. Hard-to-find watches tend to sell for large sums of money, and if you buy a rare watch, it could hold or increase in value.

Paul Altieri: Rolex watches, or luxury watches in general, have been fantastic investments, and more and more watch enthusiasts and collectors are embracing this collectible category.

At the end of the line

Rolex no longer makes vintages, like its iconic 1969 Rolex Daytona, and while some collectible watches have increased in value over time after their discontinuation, not all do.

This is why the market for used Rolexes or luxury watches in general is booming and the prospects for such watches as an investment are not expected to fade any time soon.

“Rolex watches, or luxury watches in general, have been fantastic investments, and more and more watch enthusiasts and collectors are embracing this collectible category,” Altieri added.

However, Abbas partially disagrees: “Watches are first and foremost a product of passion. If its value increases, consider it a bonus. But in case the value drops, you still have something you like.

“So if you’re buying a watch as a real investment, it’s worth researching and investing in a pre-owned watch that retains its value or has its provenance. This will ensure that your watch will at least retain its value and, if you’re lucky, become more valuable over time.

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