Are Rolex watches a valuable addition to your investment portfolio?
In our opinion, yes Rolex watches are good appreciating assets! Rolex is one of the best watch brands known for its high-end timepieces with unbelievable resale value.
In fact, studies have shown that Rolex watches can be even more profitable compared to luxury cars from an investment ROI standpoint, cementing their position as some of the best investment watches in the market today.
All of their most popular watches and even the most affordable Rolex watches, are considered great investments, especially today where there is high demand for these luxury goods.
So if you want to know more about this luxury watch investment and the pros and cons of Rolex investment watches, read our detailed guide below as we answer all of your questions regarding this matter.
Related: How Does The Rolex Waiting List Work?
The Advantages of Investing in Rolex Watches
Let’s start this guide by showing you the advantages of having a Rolex watch collection as an investment.
Easy To Move Asset
Besides being a good investment, a luxury timepiece is a portable asset.
This means you can bring it anytime and anywhere you want. Just make sure that you should continue to take proper precautions to ensure its safety.
For example, keep your luxury watches safe in a watch collectors storage case.
Related: Rothwell Watch Boxes vs WOLF
Profitable Hobby
As we said earlier, luxury watches can make great investments as their value continues to appreciate over time.
Especially since the luxury watch market today is experiencing a surge in demand for pre-owned and new watches from Rolex.
Illustrative examples of this are the Rolex GMT-Master II Ref. 126710BLNR.
In 2020, the market price of these specific watches was only around $17,500. But after a year, it reached $20,500, reflecting a remarkable $3,000 price appreciation within 12 months.
This is also one of the main reasons why many people began their watch collecting journey, not only as a hobby but also for investment purposes.
Stable During Economic Recessions
Another good thing about a luxury watch investment is that its value as an asset is not significantly influenced by the ups and downs of the stock market.
In fact, an investment watch is an asset that frequently outperforms stocks in terms of performance and remains stable even during an economic crisis.
As demonstrated in our earlier example, even though the pandemic continued to wreak havoc globally in 2020 and 2021, the value of luxury watches continued to appreciate.
The Disadvantages of Investing in Rolex Watches
Now let’s check some disadvantages of a Rolex as an investment piece.
Illiquid
If you want fast and easy cash, then investing in luxury timepieces is not for you.
As we said, even if the demand is high, you can have a lot of competitors in the secondary market that offer the same model.
If you intend to sell your watch for an optimal price, you might need to be prepared to wait for several months or even years in certain cases until supply is low.
Unexpected Costs
Similar to the previous point, some sellers often hire brokers to find a buyer for their watch, which may cost you a premium when using their service.
Additional expense involves maintaining and ensuring proper care for your watches, particularly if you own a vintage watch.
Although the watch’s resale value has increased over the years, these factors can affect your profit margin.
Counterfeit Fake Rolexes
Be aware that there are a lot of fake pre-owned watches in the market today.
You must do your research first before buying a luxury timepiece. These watches may look almost the same as the real ones, and many buyers have become victims of these counterfeit schemes.
One of the best things to know if it’s fake or real is by knowing and checking the Rolex serial number.
5 Factors That Determine The Value Of A Rolex Watch
Now that we know the pros & cons of luxury watch investment, it’s time to learn the factors that affect the value of a Rolex watch.
Rarity
Rolex watch production is limited to a certain number per year.
This makes Rolex watches a rare luxury good, just like other brands in the watch industry, such as Patek Philippe, Audemars Piguet, and Richard Mille.
The advantages of the Rolex watch brand are also its exclusivity, meaning not all men can have a chance to buy a timepiece from them, which further contributes to the desirability of their watches.
Model
The value of a Rolex watch also depends on the model. Rolex offers a diverse range of watches crafted from precious metals, featuring intricate movements and exciting features.
Naturally, watches crafted from gold or platinum with complex movements are considerably more expensive than simple time-only watches made from stainless steel. And this is especially true for limited edition models.
Authenticity
The value of a Rolex watch is greatly influenced by its authenticity. Whether you’re a collector, investor, or buyer, authenticity is a crucial factor in determining the worth of a Rolex timepiece.
So if you want to buy or finance a Rolex watch as an investment, be sure that the watch is not fake.
You should also check if its bracelets or other replacement parts are genuine because it could affect its value if you try to sell it later.
Related: Best NATO Watch Straps For Your Rolex
Better yet, always go to a reputable dealer if you want to buy a watch.
Age and Condition
The age and condition of Rolex timepieces also affect their value. In fact, vintage watches are often more expensive than brand-new timepieces as long as they are in good condition.
One notable example of this is the original Paul Newman Daytona Ref. 6239, which was sold in one of the most prominent auction houses in the world for a whopping $17.8 million.
Fashion Trends And Design
The value of a Rolex watch is also influenced by the design and current fashion trends.
For instance, if a well-known celebrity dons a timepiece during a public event, in a movie, or in its interviews, its value could experience a significant boost.
And this actually happened when John Mayer was interviewed by Hodinkee and told that the yellow-gold Rolex Daytona 116508 is one of the great steals among Rolex watches.
Before his interview in 2018, the average price of this timepiece was around $23,000. Fast forward to this day, it is now priced at an average of $110,000.
5 Tips To Help You Start Investing in Rolex Watches
Here are some expert tips that you need to know if you’re planning to invest in luxury watches like Rolex.
Research The Watch Market
Similar to other markets, understanding the watch industry can be demanding. While a luxury watch might perform well today, there’s no guarantee that this will continue in the coming months.
That is why thorough research and keeping a close eye on the changing value trends of your desired watch is a must.
Later we will show you a list of the best Rolex timepieces to buy and invest in.
Establish Your Budget and Investment Goals
Like in any other business, you must consider your budget before you spend money on a timepiece.
Remember that watches from Rolex and other high-quality watches from luxury watch brands are good investment options from a long-term perspective, not short. This means that your capital might be illiquid for a while and only appreciate after several months or even years.
Furthermore, consider investing in a watch that you like so that even if its value doesn’t meet your expectations, you can still enjoy using it.
Pick Watches With a High Resale Value
If you want to invest in timepieces, always choose the best luxury watches in terms of profit. This can be easily done if you do your homework by doing a thorough research and studying the current trend of the watch market.
A dive watch like the Rolex Submariner is always a safe choice. But you can also explore other models in the Rolex catalog.
Decide Where to Buy and Sell Rolex Watches
If you want a brand-new watch, then the best option is to go to authorized Rolex dealers to avoid purchasing fake watches.
But if you are considering big buys, such as vintage watches, we strongly recommend you buy them on reputable online stores like JOMASHOP.com and FASHIONPHILE.com.
In our experience, they have the best customer service where you can buy or even sell your watches.
Have Proper Watch Storage
If you’ve already purchased an investment watch, the next thing you need to do is protect it from damage and scratches.
That is why we recommend using the best watch collector boxes, not only to protect them but also to display them elegantly.
The 5 Best Rolex Watches to Invest In
Now let’s check out some of the best investment watches from the Rolex watch company that are seen to be the most profitable models in 2023.
#5. Rolex Yacht-Master II
The Rolex Yacht-Master is one of the hottest models in the market, not only for sailors or yacht owners. But also for casual watch wearers for its elegance and refinement.
This 42mm Yacht-Master II features a white dial with rose gold sword-shaped hour and minute hands and Arabic numeral hour markers.
The Rolex Yacht-Master also has bi-directional rotating ring command designed for yacht racing.
#4. Rolex GMT-Master II
This GMT-Master II is also a good investment option for a much lower price.
It is a perfect mix of elegance and masculinity as it features a black dial paired with a black ceramic bezel.
This luxury Rolex watch also has functions such as a second-time zone and instantaneous date, ideal for men who always travel.
#3. Rolex Day-Date
Of course, this list can not be completed if we don’t include the Rolex Day Date. As one of their most popular models, this timepiece will surely wow everyone.
Related: Affordable Rolex Day Date Alternatives
Its dark blue dial showcases the classic day-and-date function, baguette cut diamonds indices, and white gold hands.
The Rolex Day-Date also comes with a President bracelet and its signature fluted bezel, which completes its overall elegance.
#2. Rolex Sky-Dweller
If you are into complicated watches, then the Rolex Sky-Dweller is a great option you should consider.
This model features an annual calendar and dual time zone functions. It is powered by a highly accurate automatic movement with 72 hours of power reserve.
This 42mm stainless steel Rolex Sky-Dweller timepiece is paired with a jubilee bracelet, which further enhances its looks and refinement.
#1. Rolex Daytona
Lastly, here we have the most coveted timepiece of the brand, the Rolex Cosmograph Daytona. And believe me, when it comes to investment watches, this would probably be one of the best.
This model showcases a stainless steel watch case that houses a COSC-certified automatic movement with highly reliable chronograph functions.
It has an engraved tachymetric scale bezel, making it the perfect watch for race car drivers.
Although originally made for motorsport, the Rolex Daytona has become the go-to model of Rolex fans for its versatility and functionality that is suitable in both formal and casual settings.
Rolex Investment – Conclusion
And now you know!
If you are looking to invest money to make a profit or a general watch collection, investing in Rolexes is a perfect option.
The watch brand carries a lot of weight and you will definitely feel safe in buying this investment watch.
To recap, the best rolex investment watches are the following:
#1. Rolex Cosmograph Daytona
#2. Rolex Sky-Dweller
#3. Rolex Day-Date
#4. Rolex GMT-Master
#5. Rolex Yacht-Master
And if you have questions, comments, or suggestions, please feel free to leave us a message below!
