Everything You Need to Know About Investing in the Luxury Watch Market

Rolex watches signify luxury and a famous signal that the wearer has finally made it. A Rolex watch is the quintessential businessman’s watch. It’s what the CEO or company president wears. However, a Rolex is more than a fashion statement or status symbol. It’s also a good investment under the right circumstances.

If you’ve even slightly delved into the world of all things luxury watches, then you already know that building up a collection of such timepieces can prove valuable in the future. If investing in luxury items — versus something more traditional like stocks or real estate — is a relatively new concept to you, you might wonder if such investments are prudent or just a scam. Luckily, we’re here to help with all the information you need to know about investing in a Rolex.

Is a Rolex a Good Investment? Yes — And Here’s Why

Is Rolex an investment you can feel good about? Absolutely. There are multiple reasons why.

1. Materials

It all starts with the materials used to craft a Rolex timepiece. When investing in any jewelry, the precious metals add value to the piece, regardless of brand, age, etc. As the worth of precious metals and gemstones used in a piece increases in value, so does the piece’s overall value.

2. Limited Availability

Limiting resources is a tactic used by many elite jewelry brands. Rolex only makes a certain number of timepieces per year. This type of production means there are a limited number of models on the market, with varying levels of rarity. The rarer a piece, the more valuable it is.

3. Clout

Is a Rolex a good investment? It’s worth noting that brand and clout don’t come with a concrete dollar value, like silver or gold might; they help sell a product. Rolex comes with a reputation that’s not to be discounted, as it’s a reputation that can further increase resale prices.

What are the Best Models of Rolex Watches to Invest In?

That said when asking, “Are Rolexes a good investment,” the answer is yes, but that answer does come with a caveat. Not all Rolex watches are the same. Some are better investments than others, and some Rolex watches hold their value over time better than others.

Here are a few of the best Rolex watch models to invest in.

• The Rolex Submariner

This well-known, much-loved Rolex watch is a favorite and fetches a high retail price. However, if you can get a model produced before 2020, you may have an even better investment. In 2020, the 40mm model was discontinued, increasing its rarity.

• The Rolex GMT Master and GMT Master II

These two watches are likewise very well-known and very popular. Both the newer and older models are suitable investments. However, the older, the better, as this watch has been a long-lasting part of the Rolex brand, and collectors will appreciate its history.

• The Rolex Daytona

Rolex’s Daytona watches are nicknamed such due to their connection to Daytona International Speedway (the watch was designed with race car drivers in mind). The Cosmograph Daytona is one of the best Daytona variants you can buy. It was launched in the 1960s and is now on the rarer side. In general, though, all Daytona watches are rare due to their high retail price and the fact that you won’t find them at any jewelry counter.

• The Rolex Day Date

Rolex’s Day Date models include gold watches that are a little unusual for that fact alone. Gold watches aren’t as popular anymore. Because of this, these watches offer value both in rarity and in the materials used to make each timepiece.

• Any Rolex Vintage Watches

You may notice above that we focused a lot on looking for older versions of these models. That’s because Rolex vintage watches are often more valuable. It’s just common sense. The older a product is, the rarer it becomes, as items are lost, broken, or otherwise removed from the market for good. As rarity increases, so does a product’s value. So, if you can snag a vintage Rolex, do so!

How to Get the Most Out of Your Rolex Investment

Don’t just buy any ol’ Rolex off the internet and consider your investment sorted. Take some precautions to ensure your investment is indeed a smart one.

• Buy from a Reputable Seller

Firstly, only shop with a reputable seller. Go to an authorized dealer or look for rare Rolex watches available at auction houses.

• Look at Condition and Accessories

A Rolex in pristine condition with all its accessories, including the box and papers it originally came with, will always be more valuable.

Additionally, what is one little odd feature to look for when shopping? An unpolished Rolex. While it might seem strange that a secondhand buyer might want a Rolex that has yet to be polished, this feature is desirable. Because most Rolex watches have been professionally polished, the unpolished Rolexes are rare — and, as we’ve discussed, rarity equals value.

• Don’t Be Afraid to Hold on to Your Investment

As any seasoned investor knows, investing is usually a long game. With this in mind, don’t be afraid to hold on to your Rolex collection for years or even decades to reap a higher return on your investment.

Remember: The rarer the timepiece, the higher the value. The longer you hold on to a piece, the fewer similar pieces will be on the market, meaning whenever you decide to sell your Rolex, you can demand a higher price.

Is Rolex a Good Investment? FAQs

Are Rolex watches suitable investments?

Yes! Rolex watches make significant investments, so long as you shop carefully and are willing to wait a while before selling your investment for a profit.

Are Rolex good investments in 2023?

Yes. In 2023 specifically, the average costs of Rolex timepieces increased by an average of 2.5%, according to Bloomberg.

Is Rolex Watch a good investment option long-term?

Yes, Rolex watches are known to retain or increase in value the longer you keep them.

Is Rolex a good investment even if you purchased it on the secondary market?

Yes! Even if you purchase your Rolex secondhand, it will retain its appraised value and grow over time.

Keep Your Investment Safe

Once you’ve invested in your first Rolex or your next luxury timepiece in a long line of jewelry investments, keep those investments safeguarded with the proper jewelry insurance. Don’t rely on your homeowner’s insurance alone to protect your valuable pieces in case of a break-in, natural disaster, or other mishap.

BriteCo provides more comprehensive coverage to ensure your investment and watches are utterly safe from whatever life throws at you. We’ll help you recover your investment’s value from loss to accidents to breakage with fewer headaches and worries.

Learn more and get a quote today.

Also Check:

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How to Tell if a Rolex is Real | BriteCo Jewelry Insurance
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