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With 10 years of sales data to draw from, the team at Bob’s Watches, an e-commerce retailer of pre-owned Rolexes and luxury watches, analyzed how Rolex values have performed in the secondary market over the past decade compared to stocks, bonds, real estate, and gold. When the results came in, Rolex watches outperformed them all.
“We were surprised by how much the values have appreciated,” says Paul Altieri,founder and CEO of the California-based Bob's Watches, during a recent interview, noting that few online sources have access to a full decade’s worth of sales data. “We were hoping to come up in the top three, so we were happy that it was number one.”
Evaluating percentage increases for gold and real estate, based on inflation-adjusted values for gold from macrotrends.net and median sales price data for houses sold in the U.S. from the Federal Reserve Economic Data (FRED) database, Rolex watches significantly outperformed both.
When it came to the Dow Jones Industrial Average, based on values from macrotrends.net, returns were comparable over the decade, but Rolex produced significantly higher appreciation percentages over the past five years.
According to the data, the average price of a used Rolex watch rose from less than US$5,000 in 2011 to more than US$13,000 by the end of last year. Intriguingly, the appreciation of Rolex watches since the beginning of the pandemic in early 2020 is nearly equal to the total price increase over the preceding five years.
“Demand is driving that, of course, inflation as well—but inflation only accounts for maybe 20%,” Altieri says. “The vast majority is overwhelming demand. Supply has been constrained and demand just keeps surging globally.”
He added that strong economic growth around the world, and particularly in China and elsewhere in Asia, over the past five years has also helped drive up values.
“Rolex has been a huge benefactor. I would say the same for Omega, Patek Philippe, and Breitling. A lot of brands have had tremendous success the last 10 years, especially the last five, and Rolex is certainly at the top of the list.”
Bob’s Watches also evaluated appreciation by Rolex model. Not surprisingly the brand’s purpose-built sport and tool watches account for eight of the top 15 reference numbers (including the top three positions). While the stainless-steel Submariner 16610 is the single best-selling Rolex reference over the past decade and its two-tone steel-and-gold sibling Ref. 16613 comes in second, Daytona is number one when it comes to the highest-appreciating model with an average pre-owned price topping US$30,000 last year.
“Daytona has always had a broader appeal, a stronger demand,” Altieri explained. “There is at least a five-year waitlist to purchase the new Daytona at retail. It’s a more complicated watch and it has always been a popular model with a higher value.”
As an example, he cites the Ref. 116500 Daytona with a white dial, which sells for around US$38,000 in the secondary market when the official retail price is about US$13,000. “That is the ultimate example of demand and supply being out of sync with each other,” he says.
To illustrate the dramatic shift that has taken place, he said that when Bob’s Watches entered the market in 2010, prices for pre-owned watches typically ran 25% to 40% below full retail in a store. Now, for some models, the pre-owned prices are dramatically higher than retail prices, because those new hot-ticket models are so hard to come by in a store.
Altieri points out that the imbalance has been growing over the last five to 10 years, and he doesn’t predict a correction any time soon. “I don’t see Rolex increasing production substantially to satisfy demand, so quantity will remain limited,” he says, adding that Omega is also surging in demand with unit sales almost doubling last year compared to 2020.
“Watches as a category are really popular today and growing,” he says. “Barring some major recession, I don’t think you will see any change. I know it seems unsustainable, like a bubble, but I just don’t see it changing.”
FAQs
When the results came in, Rolex watches outperformed them all. “We were surprised by how much the values have appreciated,” says Paul Altieri, founder and CEO of the California-based Bob's Watches, during a recent interview, noting that few online sources have access to a full decade's worth of sales data.
Is a gold Rolex a good investment? ›
Yes! Rolex watches make significant investments, so long as you shop carefully and are willing to wait a while before selling your investment for a profit.
Do Rolexes outperform the stock market? ›
Those watches have become so coveted that the market for them has outpaced the overall stock market, growing about 20% annually from mid-2018 through this January, compared with the S&P 500 index's yearly growth rate of 8% during that period, BCG said.
Are watches a better investment than real estate? ›
Luxury timepieces are much more liquid than real estate and can be easier to sell than a property. This can provide a quick source of cash if needed. Real estate, on the other hand, may not be as liquid, but it can provide a stable source of rental income that can be used to invest in other assets.
Is it worth buying a Rolex in 2024? ›
Rolex's reputation as a stable investment has been built upon decades of consistent performance in the second-hand Rolex market. Historically, certain Rolex models, such as the Submariner, Daytona, and GMT-Master II, have exhibited remarkable resilience to economic downturns and fluctuations in consumer demand.
Which Rolex holds value best? ›
Several Rolex sports watches are known to consistently hold or increase in value. For example, the ever-popular Submariner is a good investment choice for its popularity alone. Easily one of the most recognizable Rolex watches, the Submariner is a highly coveted piece – especially on the secondary resale market.
What's the best Rolex to invest in? ›
How to find the best Rolex investment
- Rolex GMT-Master. ...
- Rolex Cosmograph Daytona. ...
- Rolex Day-Date. ...
- Rolex Explorer II. ...
- Rolex Milgauss. ...
- Rolex Oyster Perpetual. ...
- Rolex Sea-Dweller. ...
- Rolex Submariner "Red Sub" The Rolex Submariner "Red Sub" stands out with its distinctive red text on the dial.
When it comes to resale value, Rolex has the industry in the bag. They are, bar-none, the luxury watch brand with the highest resell value in the world. When it comes to average resale value Omega's isn't bad per se.
What luxury watches beat the S&P 500? ›
Prices for Rolex, Patek Philippe and Audemars Piguet watches appreciated by an average of 20% a year since mid-2018, outpacing the S&P 500 Index, as values for pre-owned luxury timepieces surged, a new report shows.
Is Patek worth more than Rolex? ›
Obviously, Pateks are more expensive, but that doesn't necessarily make them “better” in the grand scheme of things. “Patek has been making watches for 180 years, while Rolex has only been around for 110,” notes Bob's Watches founder and renowned Rolex collector, Paul Altieri.
The best watch brands for investment are Rolex, Patek Philippe, and Audemars Piguet as they are prestigious, exclusive, high-quality brands. Watches by these brands often hold their value or appreciate in value over time. Their ongoing popularity, limited editions, and scarcity drive increasing prices.
Are there more millionaires in stocks or real estate? ›
Real estate investment has long been a cornerstone of financial success, with approximately 90% of millionaires attributing their wealth in part to real estate holdings. In this article, we delve into the reasons why real estate is a preferred vehicle for creating millionaires and how you can leverage its potential.
What makes more millionaires stocks or real estate? ›
It's harder to get rich off stocks than it is to get rich off real estate. The main reason why is due to the absolute amount of money you need to risk to get rich in stocks. Even if your $5,000 stock investment goes up 50%, that's only $2,500.
How long is Rolex waitlist? ›
Rolex Daytona Wait List
| Rolex Model | Expected Wait Time | Market Premium Above MSRP |
|---|
| Stainless steel Daytona (Black dial) | VIP-only, 1 – 5 years | 92% |
| Two-tone Daytona (Rolesor) | 6 months – 2 years | 10% |
| Solid gold Daytona | 6 months – 2 years | 20% |
| Daytona “LeMans” | VVIP-only, 3+ years | 325% |
1 more rowThe Most Popular Rolex Watches On Wristcheck
- Rolex Submariner Date Stainless Steel Black Dial.
- Rolex Submariner Date Yellow Gold & Stainless Steel Black Dial.
- Rolex Submariner Yellow Gold & Stainless Steel Blue Dial.
- Rolex Submariner "Cermit"
- Rolex Submariner Date Yellow Gold Black Dial.
Rolex is known for its enduring quality, so even if a watch is over 20 years old, you get the same technology, scalability, and precision as a watch recently rolled out in the market. Another reason why pre-owned watches are more expensive than new ones is the piece of history they offer.
Why are gold Rolexes so expensive? ›
Gold Rolexes are often associated with luxury, style and status, making them highly desirable collectible items. Old gold models tend to be in better condition due to their age, which adds to their value.
Which Rolexes will appreciate in value? ›
Which 5 Rolex Watches Will Increase in Value in 2023
- Rolex Daytona 116509 White Gold Blue Dial.
- Rolex Oyster Perpetual Ref. 126000 - Green Dial.
- Rolex Submariner - 'The Hulk'
- Rolex GMT Master II - 'The Sprite'
- Rolex Daytona 116500LN.
- Conclusion.
Yes, they scratch easy, all gold does.
Is the gold on Rolex watches real? ›
Rolex is known to have its own in-house foundry, where the brand exclusively casts 18-carat yellow, white and Everose gold alloys with the help of experienced foundrymen.
