Rolex as an investment - which one increases in value?
While luxury watches are primarily a personal passion and a fulfilling hobby for many watch lovers, they are also a profitable investment for some collectors. When it comes to investing in watches, it is hard to ignore the Rolex brand, which has cult status in many parts of the world. In this article, we talk about Rolex models that are a good choice for an investment, explain what makes the Rolex watch a sought-after investment object, and give tips on the subject of Rolex as an investment.
Which Rolex watches are worth investing in?
Of course, not every model is ideal as an investment with the prospect of high returns. That's why we'll first take a closer look at five luxury watches from the Rolex brand that are particularly interesting as an investment.
Rolex Cosmograph Daytona
The Rolex Daytona , whose most famous wearer was racing driver Paul Newman, is one of the most famous and sought-after Rolex watches of all time and has experienced an incredible increase in value in the past. Unfortunately, this has also led to frequent attempts to counterfeit the Rolex Daytona and sell it at high prices. It is therefore particularly important to have these Rolex watches checked for authenticity in order to protect yourself from costly fraud.
Anyone who owns a genuine Rolex Daytona of a popular reference today has a good chance of being able to sell it for many times more than they once paid for it. The sporty watch, which appeals to more than just racing fans, is for many people the epitome of an iconic Rolex and is one of the watch brand's models for which customers accept extremely long waiting lists. And this despite the fact that the Rolex Daytona initially experienced disappointingly little demand after its release - hard to believe from today's perspective.
Rolex Submariner
A diving watch whose popularity cannot be surpassed: The Rolex Submariner (Date) is one of the "all-time favorites" of die-hard Rolex fans and is anything but an insider tip as a profitable investment. It is common knowledge that an investment in a Submariner has helped investors to make attractive profits in the past.
The Rolex Submariner Date with reference number 116610LV, the predecessor reference of the newer 126610LV, deserves special mention here. The colorful watch is also affectionately known as the "Hulk" due to its bright green bezel and matching dial, and is one of the watches whose value development may have surprised those in the know. We will go into the exact increase in value of the Rolex Submariner (Date) and all the other models presented in more detail later in this article.
Rolex GMT-Master II
Anyone who is active in the world of watches cannot ignore the GMT-Master II watches from Rolex. These have made headlines too often in recent years with their huge popularity and gigantic demand. At the top of the popularity scale are the Rolex GMT Master II "Pepsi" and Rolex GMT Master II "Batman" models with a two-tone bezel, which are currently being traded for huge sums of money on the secondary market.
Next to the trendy bicolor models, the older, partially discontinued GMT-Master II watches seem almost a bit staid. You might therefore think that these are not really suitable for an investment. But the opposite is the case: Since these less hyped watches are offered for sale at a much more affordable price, satisfactory returns are even more likely.
Rolex Oyster Perpetual
A watch from the comparatively simple and affordable Oyster Perpetual collection among the top luxury watches as an investment? You don't necessarily expect that. After all, the Oyster Perpetual Rolex watches are often seen as rather unspectacular entry-level models. However, the past few years have shown that even such a rather inconspicuous watch can bring you a nice return.
The Oyster Perpetual with reference number 114300 has seen the greatest increase in value. An important addition to this: the positive price development was seen in connection with the discontinuation of production of the model. This is a phenomenon that we observe again and again in the world of watches. When manufacturers announce the end of production, this often leads to a rapidly increasing demand for precisely these models, which in turn results in higher prices.
Rolex Air-King
With the Rolex Air-King, an absolute "underdog" has made it into the list of interesting objects for an investment. In fact, many collectors and connoisseurs of the major watch brands would without hesitation count the Air-King among the most unpopular Rolex watches of all time. That doesn't necessarily mean that the Rolex Air-King is a good investment - does it?
It depends on how you look at the current situation. There are rumors that the Air-King will be discontinued in its current version. Let's remember: the discontinuation of production has already caused a number of models to rise in value "overnight". For speculators and people who hope for a quick return without being afraid of taking risks, the Rolex Air-King is perhaps one of the most attractive Rolex models for a promising investment.
Why invest in Rolex?
Whether Rolex Explorer II, Submariner or Rolex Daytona: Rolex timepieces have a reputation for immense value stability and are therefore highly sought-after as investments. Below we will take a closer look at the market and discuss the reasons for investing in models from the Swiss watch giant.
Historical increase in value
To get into the topic, we first need to take a closer look at the terms and, above all, the market price and the list price. When we talk about the list price, we mean the manufacturer's selling price. The list price is therefore the amount of money that the manufacturer charges for the respective model. This is contrasted by the market price, i.e. the price for which the watches change hands on the secondary market.
How the market price relates to the list price depends on several factors, including demand and availability of the watch. "Slow sellers" are logically often available on the secondary market for well below the list price, while models for which the manufacturer has set long waiting lists are traded on the open market for well above the list price.
If you look back in time, you can't help but notice that Rolex products are rarely offered below list prices compared to watches from other brands. Often the opposite is the case and extremely high market prices are the order of the day.
price development
If you want to discuss Rolex as an investment in detail, there is no way around looking at the price development of individual models. In this article, we will focus on the prices of the watches that were previously presented.
It is no secret that the Daytona timepieces have turned out to be an extremely lucrative investment. Numerous collectors have been able to sell their watches of this type at a profit, with the level of return largely dependent on the condition of the watch and the reference. Let's take the Daytona Ref. 116520 as an example: In 2010, the version with a white dial could be purchased for around €7,500. Around ten years later, prices between €17,000 and €20,000 are being asked for the legendary watch. A development in value that is impressive.
As already mentioned, the end of production of a model often has a significant impact on its value. This was also the case with the Rolex "Hulk" with ceramic bezel. While it cost an average of €5,900 in 2011, by 2020 it had risen in price to €13,500. After it was announced that the model would no longer be produced, the value of the "Hulk" suddenly rose to around €16,400. Since then, the price development for the popular model has been slowing down again, but still with a clear upward trend.
Time to talk about the value development of the GMT-Master II - more precisely the GMT-Master with the reference 116710LN. This is a discontinued watch that, during production, stood in the shadow of its colorful, much more popular "siblings" called "Pepsi", "Coke" and Co. In the meantime, however, this simple stainless steel watch has blossomed into a kind of insider tip: between 2010 and 2020, its value rose from around €4,500 to just under €11,000.
The Oyster Perpetual with reference number 114300 experienced a particularly rapid increase in value. Within nine months - from January 2020 to October 2020 - its market value grew from €5,500 to over €7,200. This development is certainly also partly linked to the announcement of the production stop by Rolex.
resale value
If you buy a watch as an investment, it is often not a good idea to wear the piece of jewelry on your wrist too often in view of the resale value. This is because the condition is a key factor in determining the resale value. If you are lucky enough that a watch from your own collection experiences a significant increase in value, but then have to sell it for far less than the actual model value due to heavy signs of wear, it is more than annoying. Therefore, watches that serve as an investment should be treated as carefully as possible, serviced regularly and not necessarily worn in everyday life.
Since many Rolex models are in high demand, investors often have an "easy time" when it comes to reselling. This is especially true if the history of the piece can be fully proven, the condition is good and the watch is available in a "full set" with papers and box.
Does every Rolex increase in value?
No, not every Rolex increases in value. While some models experience a huge price increase, the value of others only increases slightly and still others last for decades without changing significantly. Compared to watches from other major brands, however, Rolex products have proven to be extremely stable in value. This means that even if not every Rolex can record an increasing value, the risk of making a loss is comparatively small if you choose Rolex as an investment.
Tips for Rolex Investments
Finally, we would like to give our readers some tips for an all-round successful investment in Rolex models:
Investing in stainless steel models
History has shown that returns can quickly reach a certain level, particularly for stainless steel models. One of the reasons is that these watches are usually significantly cheaper than their gold or platinum equivalents. At the same time, stainless steel models are very popular, which drives up their resale value. It therefore makes sense to invest in stainless steel watches when investing in Rolex timepieces.
Observe and analyze the market
Of course, investing in timepieces always has something to do with luck to a certain extent. However, to ensure that it is not a matter of pure luck, you should closely monitor the market and analyse developments. This gives you the chance to quickly recognise trends and decide to buy or sell a watch at exactly the right moment.
Collecting information from the watch market
Are there rumors about a possible end to production of a certain model? Or is Rolex planning to reissue a classic? If so, then the smart investor needs to know about it. He keeps an eye on the watch market for new products and rumors and always stays "up to date".
Where and how is it best to buy a Rolex?
The best places to buy a Rolex are reputable watch dealers, auction houses or the nearest Rolex dealer. If you buy there, you don't have to worry about the authenticity of the watch models and can fully enjoy the joy of buying a watch. It's different if you buy from private individuals. Then it's even more important to make sure that you're not dealing with fake watches or even stolen goods.
What else should you pay attention to?
It is also important to know that in Germany you are required to pay tax on the profits if you sell the watch within less than a year of purchase. When buying models from abroad in particular, German VAT plus any customs duties are also due on import. So you should keep these costs in mind before snapping up a "bargain" from abroad.
Conclusion
If you want to invest in a watch, you should not do so without thinking. Because not every timepiece is a good investment. However, there are numerous models from the luxury brand Rolex that are suitable as an investment and have proven to be extremely stable in value and have a high potential for appreciation in the past. Interested parties are therefore advised to observe the market closely and carry out comprehensive analyses - then nothing will stand in the way of a promising Rolex investment.