It happens all the time with a substantial purchase. That nagging question in the back of your head asking, 'Is this a good investment?' It’s something I hear a lot with my engagement ring hat on. People tend to spend a lot of money on an engagement ring. Yes, it’s all relative, but generally it’s one of two or possibly three big ticket items that will be purchased (behind a home and a car).
Next in line is the luxury watch market, in particular Rolex. It’s fair to say that Rolex has seen a huge rise in popularity over the last few years. The prices have only been going in one direction, up! Rolex are very careful about production and it would seem only produce desirable pieces, keeping demand and prices high. With nicknames like Batman, Hulk, Kermit, Pepsi & Root Beer, when you mention these to anyone with a slight interest in Rolex, they know exactly what you’re referring to. The type of person who would buy an expensive watch hasn't been taking expensive holidays over the past 12-18 months. Instead they've been buying luxury items, including you guessed it, Rolex's. I’m seeing this behaviour with diamond jewellery as well.
In 2017 actor Paul Newman’s personal Rolex Daytona sold for a jaw dropping $17.8m at auction becoming the most expensive watch ever sold. These watches are iconic. Let's go back to 1962. The world had its first glimpse of secret agent 007 James Bond. The watch Bond wears in Dr. No? A Rolex Submariner. Could this be why the Submariner is possibly the most sought-after model in the Rolex range? Possibly. The truth is that unless we have an infinite supply of money, enabling us to have been buying watches for years, we aren’t going to be able to buy one of the rare models at retail price. The waiting lists go on for years. And to be on the waiting list, you need to have built up a relationship with a store. There is a way to get the watch you’ve always wanted. Sadly, it comes at a price. So, if you’re considering what to get for dad this Father’s Day, although I suspect he will be buying it for himself, then I’ll let you into a secret.
There is a secondary market for everything, and everything has a price. Many people who’ve been on Rolex waiting lists sell their new watch straightaway – for a handsome profit. There are plenty of websites, and some retail shops, which specialise in “pre-owned” luxury watches. This is the only place to jump the queue and get the watch you’ve always wanted. For a lot of sports models, such as the Daytona Cosmograph, GMT Master II, Submariner, Sea-Dweller, you will always be paying a premium. However, you generally get your money back after a few years, should you decide to sell. But, what tends to happen, is that people then use their watch a few years later, to upgrade to a more expensive model.
To maintain the best value for your investment, I always recommend that you have it serviced on a regular basis. Keep it in good condition. Make sure you hold on to the original box and papers. The materials that Rolex use are of the highest quality, and they’re designed to last, but the used condition is a key factor in maintaining value. Every few years Rolex tweak the design slightly and replace it with a similar model. This then makes the previous model a bit more desirable and collectable. So, make sure you do your research. And here’s the thing. Most people who buy a Rolex as an investment can’t help but wear it every now and again. There are very few people who buy them and lock them away without even taking it out the box. So, if you’re after one and happy pay a premium, then get in touch. I’ll help make sure you get the right advice and pay the right price. I don’t claim to know everything, and whilst this isn’t “advice” as such, it’s certainly meant to help you, even if it’s a little.