WatchUSeek Watch Forums banner

1 - 20 of 28 Posts

·
Registered
Joined
·
195 Posts
Discussion Starter #1
First off, I don't think buying Rolexes or most any watches (save maybe really unique/historical models) are "good" investments. I'm sure a basic Vanguard index fund would far out perform the value of a Rolex over time. But, my question gets more to whether buying a Rolex is better investment than simply keeping cash in the bank? Right now you'd be lucky to get one percent interest on most bank accounts, and much likely a lot lower. Would most Rolexes gain at least one percent in value a year over time?

To be even more specific, if I bought a $5,000 vintage Submariner today and also put $5,000 in the bank, which would be worth more in 10 years?
 

·
Registered
Joined
·
473 Posts
First off, I don't think buying Rolexes or most any watches (save maybe really unique/historical models) are "good" investments. I'm sure a basic Vanguard index fund would far out perform the value of a Rolex over time. But, my question gets more to whether buying a Rolex is better investment than simply keeping cash in the bank? Right now you'd be lucky to get one percent interest on most bank accounts, and much likely a lot lower. Would most Rolexes gain at least one percent in value a year over time?
No. Rolex may gain value over time, but it is not liquid. If you need the cash now for an emergency, bank account is better. Even a money market fund would more liquid than trying to put up a rolex and sell it. watches are not investments. You can't eat them. You can buy groceries or pay bills with them. You can't put your kids through college with them. They are not CDIC or FDIC insured.
 

·
Registered
Joined
·
195 Posts
Discussion Starter #6
Sub will perform better than no interest checking account.
Just look at 2007 submariner prices. How much were they new in 2007?
I'll try to do that research tonight.

And I do realize the value of things can change over time, i.e. Rolex might fall out of fashion in 10 years and resale values drop off a cliff. But I'm assuming things will remain fairly steady, as there doesn't seem to be major indicators otherwise that I know of.
 

·
Banned
Joined
·
2,290 Posts
First off, I don't think buying Rolexes or most any watches (save maybe really unique/historical models) are "good" investments. I'm sure a basic Vanguard index fund would far out perform the value of a Rolex over time. But, my question gets more to whether buying a Rolex is better investment than simply keeping cash in the bank? Right now you'd be lucky to get one percent interest on most bank accounts, and much likely a lot lower. Would most Rolexes gain at least one percent in value a year over time?

To be even more specific, if I bought a $5,000 vintage Submariner today and also put $5,000 in the bank, which would be worth more in 10 years?
In one hand you claim to know about the vanguard fund and in the other you say "keep cash on hand"?????????

Who the hell keeps idle cash?


Sent from my iPhone using Tapatalk Pro
 

·
Registered
Joined
·
9,687 Posts
Impossible to predict. A Rolex should appreciate in value over time, but the Vanguard Fund will probably do better. If I was a betting man, I would buy the watch to wear and the fund to invest.
 

·
Registered
Joined
·
251 Posts
The vintage Sub will probably be worth more in 10 years....but who really knows right? Watches are not good investments for sure, but at least with Rolex, you probably won't be out too much money compared to other brands if you wanted to sell it later on.
 

·
Registered
Joined
·
9,687 Posts
Rolex watches are luxury goods (e.g. consumer discretionary items). If the economy is growing, their values will increase, if the economy is in a recession, the prices drop very quickly. In 2007-2009, during the peak of the economic recession, I saw pre-owned 16610LV's (green bezel Subs) selling at "fire sale" prices, around 3.7K-4.2K USD. Owners needed to sell them to raise $$$ for other necessities. A lot depends on when you buy or sell, as with anything you would buy for potential appreciation.
 

·
Registered
Joined
·
1,125 Posts
It's always amusing to see people try to justify a Rolex purchase as a smart investment or similar, but the reality it is just a luxury watch and there are dozens of ways to actually invest money that are a lot more sensible.

The problem is that if you buy an amazing example and then hold onto it for ten years, who knows what the market will look like then. Are you just arbitrarily going to sell it in ten years? Or only if you need to? And if you need to, are you going to be forced to fast sell it for less money than it is worth? Do you have a good means to sell it, like a great reputation on eBay? Or will you have to wholesale it to a dealer, who is going to want to buy it for a price where they can resell it for a profit?

Then there are hidden costs like perhaps paying sales tax when it was new. How about servicing, you are probably going to have to eat the cost of servicing it at least once in ten years. And what about insurance? Are you just going to lock it in a safe and never wear it? Or risk wearing it and hope it never gets damaged or stolen in the next ten years? Will you accidentally damage it in minor ways that will reduce the value?

I'd say that for the vast majority of people, you are looking at breaking even at best. So unless you find a crazy good buy, hold on to it, sell it at the right time, and have the ability to easily sell such an item, then you won't be walking away from the experience feeling like you 'invested' smartly.

Even if you buy a less common piece like the Sub LV, GMT BLNR, ceramic Daytona, then there is no way of knowing if Rolex will still have a stranglehold on the price, supply and demand for that specific piece in ten years. Many watches that are hot right now, won't be hot forever. If Rolex release say a Coke GMT in steel, will that ding excitement for the BLNR?

I think that a Rolex is best purchased to enjoy and wear. If you can get most of your money back out of it when you sell it, then you did great, and got to enjoy a great watch for a while at little cost to you.
 

·
Banned
Joined
·
1,424 Posts
Watches are useless investments unless you actually want to sell them and I've never bought Rolex with that intention and never sold. I've bought because I wanted to enjoy them over 20-30 years!
Buy what you actually enjoy and who knows, one day you may be lucky however always buy 2 of everything if you are looking for investment potential.
 

·
Registered
Joined
·
157 Posts
it may perform better under many assumptions - economy improves, you can actually sell it, you don't lose it or have it stolen... that said I'd say the increase you'd have in value over your idle checking account is not worth the 'risk' of either losing value or trying to recoup a marginal 'profit'
 

·
Registered
Joined
·
161 Posts
I never buy with the intention of it being an investment. That said, I typically don't hold on to watches long, so Rolex is good for me. Unless you buy poorly, you aren't going to lose your tail. If you come out on the positive end, consider it a win and be happy.
 

·
Premium Member
Joined
·
7,095 Posts
I am considering buying a Rolex as my next purchase as an investment, but only in the context of my watch collection. I mostly/exclusively have obscure brands (my Blancpain Fifty Fathoms Bathyscaphe being the most well known watch of any significant value), so a Rolex would rebalance my "portfolio" a little. You know, in case something crazy happens like the general public losing interest in mechanical wristwatches...
 

·
Registered
Joined
·
2,905 Posts
This notion of all Rolexes appreciating is ridiculous. A few select models have skyrocketed in value. Many more have not. Unless you can predict which models will be in vogue in 20, 30 years, "investing" money in a watch is a foolish idea.
 

·
Registered
Joined
·
3,608 Posts
I love these threads.

Personally if you are going to park some funds, look at a ladder CD. Or money market account. Or even t-bills. Maybe even some highly rated bonds. Much less risk, better return than leaving it sit. Much more predictable growth for your sitting money than the future of a watch market.

One should never liken a luxury item to an investment. There are so many rolexs made and will continue being made. Are you going to put it in a safe and never wear it? If so, see my first suggestion. What makes you think it will become rare enough to increase in value (basic supply and demand premise). Most importantly, past performance is not indicative of future performance.

Do yourself a favor and google swiss watch sales statistics, they have been in rapid decline in recent years. There is no reason to think this will change for the better. Take a look at the rapidly changing landscape (hello smart watches), it's not looking any better for analog watches. Buy watches to enjoy not to invest.


Sent from my iPhone using Tapatalk
 
  • Like
Reactions: Laso1

·
Registered
Joined
·
818 Posts
This is like the people who obsess over resale value on a car. If you are concerned about what something will be worth after you've grown tired of it, then you should really evaluate whether you are truly in a position to afford the purchase in the first place.
 
  • Like
Reactions: Laso1
1 - 20 of 28 Posts
Top