Rolex Vs Gold Vs Stocks As An Investment

In March, prices for pre-owned Rolex Daytonas hit $48,500. It has since moved a little closer to Earth and is currently priced at around $30,000 on the secondary market, according to watch charts.

After a surge in secondary market prices for Rolex watches in the first few months of 2022, they fell slightly towards the end of the year. However, Rolex's value as an investment has outperformed other assets such as gold and the stock market over the past decade. On Chrono24, about 25% of site searches are on I am referring to Rolex. About 14% of the watches sold on the platform are Rolex, and four-fifths of them are pre-owned.

Chrono24 founder Tim Stracke said, "Most watch prices are above January again this year, but not as much as they were in March or April." According to Chrono24, the dramatic price increase primarily affected brands that Stracke calls "his three greats." Rolex, Patek Philippe, Audemars Piguet.

But other watch brands have only seen what Stracke called "very, very stable, slow but steady increases over time." In February, Paul Altieri, managing director of online watch resale marketplace Bob's Watches, said: "Rolex has been a good investment over the years, but not as good as the last five."

Over the past decade, Bob's has bought and sold thousands of watches with a consistent pricing strategy. This gave us a unique insight into the true market value of each Rolex model.

One of the reasons Rolex watch prices have skyrocketed in recent years is supply. Rolex reportedly makes about 800,000 watches each year, but the popularity of the brand has led to demand far outstripping the supply of new watches, creating a thriving secondary market for used watches.

In fact, Rolex's average sales have been on an upward trend since 2017 and are set to gain even more momentum in 2020. As of February 2022, the average Rolex price is over $13,000, almost triple the 2011 global average of $5,000. "He's worth double or triple what he paid before he leaves the store," he says. And that is if you can even find an authorized dealer to sell it to you.

"People have been waiting a year or two for their names to be on the buyers list and they're not going to turn it around," Altieri said. Limited supply is probably one of the reasons why Rolex launched its own Certified Pre-Owned program in December.

“The new program will allow the purchase of pre-owned watches certified and guaranteed by the brand itself. Its purpose is to upgrade the existing range of pre-owned Rolex watches. , because its authenticity must be proven by an authorized retailer at the time of resale," Rolex said when announcing the program. According to a McKinsey report, the current value of the pre-owned luxury watch market is estimated at $20 billion and is projected to exceed $29 billion by 2025. Stracke assumes inflation will continue to drive demand and prices for the Magnificent Three next year.

“Many users buy watches not only to enjoy the impeccable craftsmanship, the beauty of the watch, and the status of the brand, but also to enjoy lasting value.” We should call it a real asset class, not a category of