As one of the most iconic luxury watch brands, Rolex has always been recognized for its premium quality, luxury status, as well as investment value. With limited supply and ever growing global demand, especially in China and other Asian markets, Rolex watches have seen tremendous price appreciation in the past decade, far exceeding the returns from stocks, bonds, real estate and even gold. Famed investor Li Ka-shing has also revealed that he bought insurance policies for his family, and publically announced buying stocks of Prudential, indirectly confirming his purchase of insurance featuring Rolex watches. The scarcity, iconic design, premium branding and potential capital appreciation makes Rolex an excellent investment choice.
Secondary market data shows strong price growth for rolex watches, beating other assets
According to 10-year sales data analyzed by Bob’s Watches, a leading reseller for pre-owned Rolex timepieces, Rolex watches significantly outperformed stocks, bonds, real estate and gold in terms of investment returns over the past decade. The average pre-owned price has surged from below $5,000 in 2011 to over $13,000 by end of 2021. Interestingly, Rolex watches have appreciated nearly as much since 2020 as they did in the preceding five years, likely driven by pandemic induced demand and constrained supply.
Among rolex models, the Daytona has the greatest investment potential
While the stainless steel Submariner 16610 was the best selling Rolex over the past decade, closely followed by the Submariner 16613, the Daytona takes the top spot as the model with greatest investment upside given its broader appeal and scarcer availability. Waiting time at retail stores for a new Daytona now easily exceeds five years. The white dial Ref. 116500 Daytona now sells for around $38,000 in the secondary market, compared to its retail price of $13,000, perfectly exemplifying the demand-supply imbalance.
Investment interest in rolex continues rising amid limited supply
As per watch reseller Paul Altieri, founder of Bob’s Watches, demand and inflation are certainly fueling the surge in Rolex valuations, but inflation only accounts for around 20%. The vast majority is driven by overwhelming demand amid constrained supply. He expects the situation to persist in the near term given Rolex’s reluctance to boost production dramatically. The trend has intensified over the past 5-10 years and shows no signs of correction.
rolex offers scarcity, branding and collectibility – key traits of investment grade assets
Rolex’s mastery in manufacturing proprietary mechanical movements, combined with its marketing brilliance in shaping iconic branding has created enormous demand for its watches. Yet Rolex has deliberately kept production limited, making its watches scarce and exclusive. The timeless aesthetics also make Rolex watches highly collectible across generations. The scarcity, branding power and collectibility makes Rolex watches similar to other alternative investments like art, wine and jewelry.
With strong price appreciation that has exceeded returns from stocks and other assets, robust global demand, intentionally limited production, and collectibility, Rolex watches have great investment value and present a compelling investment opportunity for investors seeking alternative assets.