Is Rolex a Good Investment?

For the luxury goods lover, a Rolex can be a unique alternative investment opportunity. Rolex’s strong reputation as a creator of quality timepieces combines perfectly with its heritage as a noteworthy brand. Learn how to invest in Rolex watches by exploring various auctions and visiting authorized dealers. Rolex watches offer a way to connect with a historically vibrant company while potentially enjoying high levels of appreciation.

Why is Rolex a Good Investment?

According to the U.S. Department of Commerce, luxury goods include accessories, articles of clothing and jewelry. Determining does Rolex go up in value requires examining a combination of factors including quality and brand. Rolex is an established brand name. Within the luxury market, Rolex touts a strong brand reputation that helps to increase demand. The company crafts a limited supply of watches to better control prices and emphasize a sense of brand exclusivity. 

Brand Reputation and Recognition

With over a century of watching-making experience, Rolex has established itself as a top name within the luxury watch market. The company is known for craftsmanship and precision. Rolex has a brand reputation linked to luxury and high status and is internationally recognizable. 

Limited Supply 

Rolex keeps a close eye on production, in part to avoid oversaturating the market. The controlled supply helps to drive up demand. Over time, the limited supply encourages price appreciation. 

Price Appreciation

Appreciation increases the price of Rolex watches over time. Limited-edition models and vintage models can benefit the most from price appreciation. For example, Rolex models such as the Submariner might appreciate 100% or more in the pre-owned market. Collectors drive up prices by searching for and attempting to purchase specific models.

Legacy and Heritage

Over the last 10 decades, Rolex has steadily created a rich history and legacy. The company successfully established historical and emotional ties to its brand. Vintage watch models are in high demand. In some cases, a Rolex watch is considered a family heirloom.

Inflation Hedge

Physical assets such as houses and luxury watches can be a hedge against inflation. Tangible assets retain value and can appreciate over an extended period. Rolex watches can be a part of a diversified investment portfolio.

Global Market

Rolex taps into a global market with a geographically and culturally diverse customer clientele. The company’s international reach allows it to more easily navigate temporary market shifts throughout different regions. The market demand for Rolex watches continues to increase as noted by the rising prices of models such as the Submariner, Daytona and GMT-Master II. 

How to Invest in Rolex Watches

You can invest in Rolex watches using a wide selection of investment opportunities. Consider buying from an authorized dealer or participating in a luxury auction to purchase the investment watch of your dreams.

Buy from Authorized Dealers or Reputable Resellers

To ensure the legitimacy of a Rolex, it is best to buy one from an authorized Rolex dealer. Buy directly to ensure the quality and authenticity of the watch. Research reputable dealers and resellers by reading customer reviews on third-party websites.

Luxury Watch Exchange-Traded Funds (ETFs)

Some investment firms allow investors to invest in luxury-focused exchange-traded funds (ETFs). ETFs are traded on the stock market and consist of a collection of investments. Investing in ETFs allows you to access the luxury goods market without needing to purchase or own a watch.

Collectibles Investment Funds

Compared to their original price, collectibles can be more expensive in the future. Alternative investment funds focus on collectible items such as luxury watches and fine art. They combine money provided by investors to obtain and oversee a unique portfolio of collectible assets. 

Auction Houses

Consider participating in luxury auctions that showcase valuable timepieces or jewelry and let you bid on various items. Items obtained from an auction can be considered an investment.

Online Marketplaces

It’s possible to purchase a Rolex watch from a reputable online source. Buying a luxury watch online can save you time. However, the purchase method comes with additional risks. Search for reputable sellers to safeguard against buying a fake watch.

What Rolex is the Best Investment?

When deciding what Rolex is the best investment, explore three unique models typically known for appreciation. To answer the question, is Rolex an asset worth investing in, first determine your goals and price point.

Submariner

The Submariner model remains an excellent investment because it is considered one of the top watches for divers. It is water and corrosion-resistant, which makes it a durable sports watch. The Submariner frequently appreciates after purchase. 

Daytona

The Daytona enjoys a demand that exceeds supply, which increases the chance that the watch will appreciate after purchase. The racing sports watch has a unique design capable of measuring speed thanks to the addition of a tachymeter bezel. 

GMT-Master II

The model was designed with pilots in mind. Standout features include the ability to show two time zones at once. The GMT-Master II remains in high demand in part due to its low supply, unique nature and high quality. 

Tips for Investing in Rolex

Before purchasing a Rolex, review the steps below to select the perfect investment.

Research and Knowledge

Learn about the brand’s history and recent developments. Research the characteristics of different models. Recognize key factors that impact the value of a watch, such as its rarity, age and condition. 

Buy from Authorized Dealers

Safeguard your investment by ensuring the authenticity of a Rolex watch before purchasing. Work with authorized dealers or reputable sellers. Avoid counterfeits by staying alert when shopping online. Rolex has a list of official Rolex jewelers displayed on its website.

Focus on Rarity

Search for limited or discontinued models to have a better chance of experiencing higher levels of appreciation. Research watches with unique features or historical importance to recognize what models collectors typically want.

Condition is Key

Keep in mind that watches in better condition command higher prices. Search for watches with original pieces and minimal damage.

Complete Documentation

Purchase a watch that includes necessary documentation including service records and receipts. Documentation helps to prove authenticity, increase a watch’s value and potentially expedite a resale.

Consider Popular Models

Popular Rolex models such as the Submariner and Daytona experience consistent demand in the larger watch market. Highly coveted models are typically desired by collectors.

Diversify Your Collection

Diversification can improve your alternative investment in watches. Think about buying different models and styles to minimize your risks.

Long-Term Investment

Alternative investments such as Rolex watches are viewed as long-term investments. Watches can take several years to appreciate in value. Research appreciation trends to make an informed decision. 

Storage and Maintenance

Remember, the condition is key. Consistent storage and maintenance help safeguard the condition of a watch. Have watches regularly serviced by approved Rolex service centers.

Consult Experts

Reach out to professionals within the luxury watch field for advice. Experts provide insight into the value of possible investments. Speak with an expert to learn how to calculate or understand the potential resale value of a watch.

Invest in Your Future

For an alternative investor, a Rolex watch could be a good investment for the future. Craft a long-term timeline that works alongside the appreciation of your investments. Reach out to experts and research the various models to decide which opportunity would work best for your budget and level of risk tolerance. 

Frequently Asked Questions