I’m a third-generation jeweler. I’ve sold a great many pre-owned Rolex watches and other fine timepieces. I’ve really focused on pre-owned Rolexes, and for some time now I’ve made it a significant part of my business. It might surprise you to hear this from me: Don’t consider resale value when you buy a Rolex. Don’t think about that at all. Buy a Rolex because you want one and you want to be able to pass it down to the next generation. Don’t ever buy a Rolex as an investment.
Now, I’m talking to the average person. I’m talking to the people I usually meet and see in my La Jolla showroom. Of course, there are people who buy luxury goods as part of their investment strategy. There are also people who buy sports memorabilia as part of their strategy. There are people who buy highly speculative equities like penny stocks. It might work for some people but the standard for anyone with speculative investments, I think, ought to be that you shouldn’t invest unless you’re able to accept a complete loss of your investment. Most of us can’t do that.
So, if you’re asking about Rolex retaining it’s value because you’re hoping to use it like a savings account or hoping it will appreciate, I would suggest something else. Gold, platinum, and silver are very common investments. I can’t and won’t offer financial advice and I don’t want you to think of anything I say here in that sort of light. I do know, though, that people who typically invest in Rolexes buy many tens of thousands of dollars’ worth of watches and it’s a very small part of their portfolio.
Having said that, if your question isn’t about savings but about the likelihood you’ll be able to trade it in later for another watch, Rolex watches are known for their ability to retain and even increase their value over time. Compared to other fine timepieces, Rolex watches have a high resale value because of their history of producing top-class watches. Rolex watches can appreciate value over time, especially older or rarer models; and it’s true that pre-owned Rolex watches can be more expensive than new ones because of their limited availability.
The market over the last four or five years, though, has been crazy. As more people enter it, demand has grown. There’s no guarantee it’ll keep up this way. I’ve always believed, and I still do, that you buy a Rolex because you want an exceptional Swiss mechanical watch, not because you think it’ll make you money later.
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