Rolex As An Investment = Bad Idea

[Pay M3]

Why do people continue asking this? All it takes is some simple math to realize it’s not a good investment and is in fact meant to be worn as a watch. This same argument gets made in other markets as well and it blows my mind.

8k over a 30 year period at a modest return of 7% with traditional investments will net you more of a return (roughly 55-60k) than your average Rolex unless you get lucky with a unicorn piece.

Stop worrying about this stuff and buy the thing.

[Zakalwe]

I honestly suspect that there’s a misunderstanding sometimes with investment questions between those asking and those answering.

I imagine many “Rolex as investment” inquirers are perfectly well aware that Rolex is not going to get you a return on your money in the same way as stocks or property might.

However, a watch that costs x, gives 10 years of pleasure as a daily wearer and can be sold for say x+10% is a great overall investment if not a sound financial one.

[SilverFoxUK]

So what's wrong with someone who already invests in (e.g. the stock market, property, tax-free cash etc) also buying some watches, with the dual aim of enjoying them and diversifying their investment portfolio? As long as they accept the risk that SS Rolex/PP may not always be hot property (fairly low risk IMO), that seems sensible to me. I love wearing my SS watches, but am also pleased that I have spread my overall risk of my money, into something I also enjoy.

[Ian Macdermott]

In a doddery old mans voice.


I can remember the day when you just bought a watch for telling the time and wore it.

[Brew]

Sometimes a bit of rationalization helps take the sting out of the purchase price.
I can get my money back, etc. Whatever works for you.

[SkyJuice]

As the wise man used to say, don't put all your eggs into one basket.

[padi56]

Today Rolex are no longer seen as very fine watches to be bought to wear for many years.Now they are thought of as silly nicknames and little more than $$$$$££££, bet old Hans the founder of the RWC is turning in his grave

[Andad]

Originally Posted by Pay M3

Why do people continue asking this? All it takes is some simple math to realize it’s not a good investment and is in fact meant to be worn as a watch. This same argument gets made in other markets as well and it blows my mind.

8k over a 30 year period at a modest return of 7% with traditional investments will net you more of a return (roughly 55-60k) than your average Rolex unless you get lucky with a unicorn piece.

Stop worrying about this stuff and buy the thing.

I take it you are not in finance for living.

[peterpl]

Originally Posted by SkyJuice

As the wise man used to say, don't put all your eggs into one basket.

This is true if you dont know what your investing in or you really dont understand the market of your investment choice.

If you truly know what your doing investing in a single market can pay you shitloads. I've personally done this in housing and made a motsa.

[bobabreath]

True, not a great investment. But its one of few watch brands that has the ability to appreciate. Therefore, some will use it to make a profit.

[DP63]

I think it depends on the buyer/owner and their financial status, and is obviously down to the terminology used.

If you are a blue collar guy who doesnt do investments, in the true sense of the word, stock/share portfolios etc, who treats yourself on occasion, the difference between buying a car and it steadily going down in value compared to buying a watch that at the very least (today) holds value over 10 years and could potentially give you some quick cash in an emergency is what they would regard as an investment. I have a friend who justified his Sub purchase by stating it would never be worth less than he paid for it ... the fact that £5k 10 years ago is worth less than £5k today does not come in to the equation for him ... its still £5k and had he left that money in the bank 10 years ago, it would be fractionally more than £5k today. At present though, he would make money on his initial purchase price, hence why he calls it an investment.

Its the word "investment" itself that causes the disagreements and discussions in my opinion.

I buy my watches to enjoy, the fact that in todays market they dont lose money (not even the VAT) is simply an additional positive of ownership for me. I'm fully aware that things change as I've been around long enough to have lived through some serious changes in my life, and thats the key element for me, being aware. If its going to give me my money back and I've enjoyed ownership over the time I've owned them, great, if I make some money on them, even better, and if not (?), then it is what it is and there is nothing I could have done to change that, it wasnt the reason for purchasing in the first place .... I lost £33k on a pension portfolio during the financial crash .... nothing I could have done would have prevented that, smarter people than me never saw it coming, at least with the watches there is something in it for me over the period of ownership if my £6k watch is worth £500 at the end of the day, so be it.

[thesharkfactor]

Compare to buying a Breiting/omega/tag. Pay ££££ today for a new one, tomorrow used it’s worth ££.
Rolex pay ££££ today, tomorrow used is still ££££.
This is what folks are on about.

[peterpl]

Originally Posted by thesharkfactor

Rolex pay ££££ today, tomorrow used is still ££££.
This is what folks are on about.

That is a bad investment. LOL

if its ££££ you'd expect at least £££££ when you sell to consider it an investment.

[tanask211]

One of the reason for me to buy Rolex is mainly on the readiness to convert into cash when required. If you are lucky, it can either be worn for free or make some profit. Unless you buying a BNIB on popular models to keep for 10 to 15 years else dont expect too much.

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[Pam673]

All the current Rolex steel watches can be sold for alot more than the recommend retail price.

Look at how much the grey dealers are charging for the Hulk, Batman, Pepsi, Daytona, Skydweller...etc

So yes they are an investment provided it's in new or near new condition.

[beshannon]

Originally Posted by padi56

Today Rolex are no longer seen as very fine watches to be bought to wear for many years.Now they are thought of as silly nicknames and little more than $$$$$££££, bet old Hans the founder of the RWC is turning in his grave

I agree completely, very few still care about mechanical watches.

[Ian Macdermott]

Originally Posted by beshannon

I agree completely, very few still care about mechanical watches.

I agree as well that's why I have a good few 20 to 60 year old mechanical watches that are worth a few pounds but I still enjoy them just as much as my Rolex.

[Zakalwe]

Originally Posted by Pam673

All the current Rolex steel watches can be sold for alot more than the recommend retail price.

Look at how much the grey dealers are charging for the Hulk, Batman, Pepsi, Daytona, Skydweller...etc

So yes they are an investment provided it's in new or near new condition.

You can’t sell them for what the grey dealers can though. If you factor in their profit margin, or the reduced asking price you’d be forced to accept if you tried to flog them yourself on eBay or Chrono24, you’re only actually making a decent profit on a BLRO or Daytona.

[Onikage]

Go to an AD with the open intention of investing in Daytonas and GMTs and let us know how it goes.

[brandrea]

Originally Posted by beshannon

I agree completely, very few still care about mechanical watches.

Agree with you brother, it’s a shame

[Ococ]

Originally Posted by Pay M3

Why do people continue asking this? All it takes is some simple math to realize it’s not a good investment and is in fact meant to be worn as a watch. This same argument gets made in other markets as well and it blows my mind.

8k over a 30 year period at a modest return of 7% with traditional investments will net you more of a return (roughly 55-60k) than your average Rolex unless you get lucky with a unicorn piece.

Stop worrying about this stuff and buy the thing.

Bought a Daytona back in 2008 for € 7.205,- and last week somebody ask me to sell.
The watch is NOS still in the stickers and he offered me € 19.500,-.

[Brew]

I'm pretty sure any would-be Rolex "investor" would get a better ROI if he put his $$ in banana stands.

[Casey VP-26]

Depends on how much you pay.

[1William]

I think that sometimes we throw words around like investment when really what we mean is getting our money or at least a large portion back out should we decide to move on. You hear it a lot from younger collectors or on occasion from the big time collectors. As the current market changes, and they always do, it will calm down with the investment talk and many people that are in it for other factors other than the love of the watches will move on.

[steve099]

Are excellent condition, papered examples of rare vintage Rolex watches considered investments?

[997.2]

Sounds like you’re an expert on money with your username

Thanks for the expert insight and crunching those numbers for us bud

[jps3b]

You definitely can’t argue those number. Facts are facts. But it’s hard to put a monetary value on wearing and enjoying said time piece over 30 years and still at the very least tripling your money. The endless hours of enjoyment you get wearing the watch, talking about them here on TRF and the excitement of hunting for your next one. So for me, that indeed makes Rolex a good investment. Sorry for being in the minority.

[beshannon]

Originally Posted by Ococ

Bought a Daytona back in 2008 for € 7.205,- and last week somebody ask me to sell.
The watch is NOS still in the stickers and he offered me € 19.500,-.

Did you sell?

Then you realized no gain and this line of reasoning is deeply flawed.

[zengineer]

I think some people need to stop going into convulsions every time someone on the forum refers to a Rolex as a good investment. Normal people use the term investment as a way to describe "money well spent" or "a good purchase decision". You have a need or want, you spend money to fill the need or want. How completely the need or want is satisfied for how long tells you if you spent wisely.

We all know a watch is not a mutual fund, but you also cant wear a mutual fund on your wrist.

Buying most Rolex sport watches at retail is a good choice once you've decided to spend stupid money on a wristwatch. It's a "good investment" compared to buying most other brands in the same price range...especially at retail.

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[jps3b]

Originally Posted by padi56

Today Rolex are no longer seen as very fine watches to be bought to wear for many years.Now they are thought of as silly nicknames and little more than $$$$$££££, bet old Hans the founder of the RWC is turning in his grave

I disagree Sir. I know you have an incredible reputation here on this great forum we all enjoy, but I think Mr. Wilsdorf would be very happy that all his hard work and innovation turned out to be a multi billion dollar company that millions continue to enjoy and pass down to younger generations. Just my humble opinion