Investing in Rolex Watches: What You Need to Know

Uncertainties in the future will cause people to invest in various kinds of funds, metals, private equity, certificates of deposit, digital currencies, collectibles, and others.  But what really is investment?

Investment is a way of saving resources to generate profits that can be used in the future.  Investors commit their money or other resources to a venture with the hope of growing its value over time, thus providing a considerable income to them to achieve their financial plans in life.

Among jewelry pieces, watches have become one of the investment targets of individuals, and Rolex has become a popular choice for this.  So, why do people invest in this kind of watch?

Well, since Rolex is the most recognized luxury brand in the market, owning one means success and wealth.  Another thing, unlike other goods that depreciate their value as you use them, Rolex has a different story as it retains its value as time goes by.  Actually, Rolex’s limited edition and vintage pieces even appreciate their value over time.

These watches are also known for longevity, that is why they are usually handed down to the next generation, thus preserving their value.  The jewelry you bought decades ago can still be used today with the same precision.  People crave their classic and iconic designs that endure time and trends.

Submariner, Daytona, or GMT-Master II are very scarce models, so they make outstanding investment items, and the possibility of increasing their value in the future is high.  People can indeed preserve their investments even as inflation comes and goes.  Stock markets fluctuate, but Rolex retains its value better than stocks.

The collectibility of Rolex models is also one of the considerations when investing in this watch.  Many watch enthusiasts collect their vintage pieces, just like the Rolex Daytona  “Paul Newman” iconic models that have been sold for millions of dollars at auction.  Their other collectible models have attractive investment potential.

Rolex are highly liquid because they are easily sold at a high price, and there are many auction houses and even online marketplaces where people can trade watches.  Since the timepiece has a robust global fan base and high demand, it is easy to resell the item.

Investing in Rolex watches should be a gratifying experience, considering how this luxury brand offers motivations to do so.  But, it is still important to be well aware of the following considerations when investing in this type of chronometer:

• Research the model you want because not all Rolex watches are suitable for investment purposes.  Look for limited editions and vintage pieces because these have greater investment potential; look for Submariner, Daytona, GMT-Master II, and Datejust.
• Of course, you should prefer to buy a new one from an authorized seller instead of resale to have a better chance of acquiring an authentic one.  You must also be patient because you may become one of the wait-listed buyers.  But if you are considering a resale, have it checked for its condition because its original parts may have been replaced already, or you may also fall into fake purchases.
• Keeping the original box and all the necessary documents and accessories for a Rolex watch purchase is mandatory.  Why?  Investors require them as proof of an authentic timer.
• Check out the buy and sell trends to maximize returns of investment.  Grab the chance to sell the model when it is scarce, for the price may spike at this time.   However, it is also good to invest in popular models because of their liquidity.
• The watch needs regular maintenance, so a regular visit to an authorized Rolex service center can increase the value of the timer.  Avoid unofficial servicing that may bring you problems later on.
• Since they are luxury items, they must be protected, so insure your investment against theft, damage, and loss.
• Understand how an auction works, including fees, taxes, biddings, and other processes.  Selling and purchasing prestige watches are frequently done in auction houses.
• Several Rolex models have a long waiting list lasting months or even years.  This factor forces the prices in the secondary market to move up quickly.
• When there’s inflation, people look for alternatives to cash and stock, so that Rolex watches may become one of the answers.  However, during serious economic downturns, its short-term value may decrease.
• If you’re interested in short-term investment, be selective of the model that quickly increases its value and be alert to market conditions.  In contrast, if you’re more occupied with long-term investment, keep your vintage and limited edition watches and expect them to yield greater profits several years later.

Be an informed investor and make the most of your Rolex investment.