Rolex watches have become a popular investment asset class in recent years. According to sales data analysis from pre-owned Rolex retailer Bob’s Watches, Rolex watches have significantly outperformed stocks, bonds, real estate and gold in terms of investment returns over the past decade. The strong demand and limited supply of Rolex watches, especially sport models like the Rolex Daytona, Submariner and GMT-Master II, have driven up secondary market prices. With rolex continuing to limit production, Rolex watch investment returns are expected to remain strong barring an economic recession.
Rolex investment returns beat S&P 500 stocks over 10 years
Based on inflation-adjusted data, Rolex watches have matched the investment returns of the Dow Jones Industrial Average over the past 10 years. But over the last 5 years, Rolex watch price appreciation has far exceeded stock market returns. The average pre-owned Rolex selling price has surged from under $5,000 in 2011 to over $13,000 at the end of last year.
Rolex appreciates faster than gold and real estate
After adjusting for inflation, gold prices are up 20% over the past decade according to data from MacroTrends. Meanwhile, the median home sales price in the U.S. is up 30% over the same period based on Federal Reserve data. Rolex watch values have increased by over 200% during this timeframe, significantly outpacing both gold and real estate.
Strong demand and limited supply driving rolex prices
Rolex has intentionally constrained supply even as demand continues growing globally. This supply-demand imbalance has led to multi-year waitlists for popular sport Rolex models at retail stores. On the secondary market, pre-owned Rolex prices now often exceed retail. For example, a white dial Rolex Daytona 116500 commands a market price around $38,000 but has a retail price of only $13,000.
rolex investment outlook remains strong
Rolex is unlikely to significantly ramp up production to meet demand in the near future. Limited supply coupled with ongoing increases in global wealth, especially in China and Asia, will continue to drive up secondary market Rolex prices. Other popular luxury watch brands like Omega and Audemars Piguet are also seeing substantial price appreciation from surging demand.
Rolex watches have significantly outpaced traditional assets like stocks, bonds, real estate and gold in terms of investment returns over the past 10 years, especially the last 5 years. With supply remaining constrained and demand continuing to grow globally, Rolex watch prices are expected to keep rising at a rapid clip in the short to medium term.