Why the 'investment' snobbery?

[T. Ferguson]

Sure there is bound to be the odd elitist comment once in awhile but by and large people around here are well meaning and probably correct to caution someone about entering into a Rolex purchase with an expectation of a future increase in value. Modern watches are no place to be investing money especially if you don't have a lot of it.

As for the SD4K, if it is discontinued it's probably because it hasn't sold well, so I doubt resale will be great. Now, 50 years from now it may indeed be sought after, but who knows? So buy it because you want it.

Keep in mind that Rolex future values are largely determined by the company's ability to continue to raise prices. My Sub I paid $1,900 for is worth more today mainly because a new one now costs $8,600 and not because the 16610 is discontinued. At some point Rolex pricing may meet resistance or hit the wall. Resale values will probably come to a standstill at that time.

[Tony64]

Originally Posted by T. Ferguson

Sure there is bound to be the odd elitist comment once in awhile but by and large people around here are well meaning and probably correct to caution someone about entering into a Rolex purchase with an expectation of a future increase in value. Modern watches are no place to be investing money especially if you don't have a lot of it.

As for the SD4K, if it is discontinued it's probably because it hasn't sold well, so I doubt resale will be great. Now, 50 years from now it may indeed be sought after, but who knows? So buy it because you want it.

Keep in mind that Rolex future values are largely determined by the company's ability to continue to raise prices. My Sub I paid $1,900 for is worth more today mainly because a new one now costs $8,600 and not because the 16610 is discontinued. At some point Rolex pricing may meet resistance or hit the wall. Resale values will probably come to a standstill at that time.

^^^ perfect summary and brilliant explanation

[rootbeer7]

Great subject and answers so far and even better, opinions have been raised without an argument. I think some of the battle is a general old/new money issue. Money buys you anything and everything except class and therefore has taken many timepieces well above a price old-school hobbyists could afford. This in turn leads to pieces being hidden away amongst collections and increases the hype and prices when one does appear. You may notice that a certain 'rare' piece sells and then suddenly more appear, very often of poorer quality, but these are very often bought by new-money as a must-have. Truthfully, inflation as has been stated, is really only at play amongst modern pieces as they are all mass-produced but a ss sports watch will always be in higher demand than a tt Date.

[derekstlmo]

I didn't know there were so many sneaker heads on here
I'm looking for the trf discount I'm a size 9 thanks
Wanting those camo nmd

[ap1]

I'm officially old, no clue about yeezys

[douglasf13]

Originally Posted by rootbeer7

Great subject and answers so far and even better, opinions have been raised without an argument. I think some of the battle is a general old/new money issue. Money buys you anything and everything except class and therefore has taken many timepieces well above a price old-school hobbyists could afford. This in turn leads to pieces being hidden away amongst collections and increases the hype and prices when one does appear. You may notice that a certain 'rare' piece sells and then suddenly more appear, very often of poorer quality, but these are very often bought by new-money as a must-have. Truthfully, inflation as has been stated, is really only at play amongst modern pieces as they are all mass-produced but a ss sports watch will always be in higher demand than a tt Date.

Yeah, there's also this last decade of low interest rates and easy credit. It's amazing to see what people have been spending on cars with somewhat modest salaries (believe median new car price is around $34K in the US.) I have to wonder how often people are buying Rolex watches with credit and whatnot.

[Wools]

Originally Posted by douglasf13

Yeah, there's also this last decade of low interest rates and easy credit. It's amazing to see what people have been spending on cars with somewhat modest salaries (believe median new car price is around $34K in the US.) I have to wonder how often people are buying Rolex watches with credit and whatnot.

Also, it's only because of Credit I can even think of buying a Rolex, as it would be very difficult otherwise.

It's odd, the price of a Rolex used to be under £100 but credit did not really exist for most people. Now, prices are £5K and up, so it's out of the reach of the everyman and only available to the rich or people like me on a great but more modest salary.

I could justify spending £5K on a bathroom but £5K + on a watch is a pure indulgence so Credit makes the most sense for me. I only have 1 thing on credit at a time (Along with my mortgage) so think I'm doing it sensibly!

[Punchthefatkid]

I think this forum was originally designed as a meeting point for fellow watch enthusiasts to meet and discuss all things watch related - mainly Rolex but not exclusively.

It seems to becoming increasingly populated with people only interested in one thing "How much will.it be worth in 10 years"

Personally I feel watches were made to be worn and enjoyed.

If they are worth more than what you paid for it in 10 years time, then that would be a bonus but not a reason to purchase in the first instance.

I am on this forum to learn as much about the Rolex brand as possible to help me make an informed decision as to which Model will be right for me based on the various discussions and comments from other forum members.

Anyone who is looking to invest in something purely for profit should maybe look at stocks & shares or some other proven method of turning a quick buck.

Watches are watches not investment opportunities.

Buy a watch to wear and enjoy, that's what I'll be doing and any profiteering will be by my son not me as I will be passing it on to him when I'm gone, not selling it in a few years for a little profit.





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[douglasf13]

Originally Posted by Wools

Also, it's only because of Credit I can even think of buying a Rolex, as it would be very difficult otherwise.

It's odd, the price of a Rolex used to be under £100 but credit did not really exist for most people. Now, prices are £5K and up, so it's out of the reach of the everyman and only available to the rich or people like me on a great but more modest salary.

I could justify spending £5K on a bathroom but £5K + on a watch is a pure indulgence so Credit makes the most sense for me. I only have 1 thing on credit at a time (Along with my mortgage) so think I'm doing it sensibly!

I can't imagine using credit to buy such an expensive luxury item, and at least a bathroom adds some equity into your home, but certainly to each his/her own.

[joli160]

I don't get the investment question and never bother to read these posts.
Imho just somebody considering purchasing a nice watch for all the wrong reasons.

[BLACKHORSE 6]

I get the feeling that what most people ask about a watch being an investment, what they're really asking is "can I get my money back out of the watch if I need to?" Maybe they're worried about not liking the watch after wearing it for a few months and want to be sure they can flip it for another, or maybe they want to see it as a backup to their emergency fund that they can also wear and enjoy.

Maybe in a few cases they see the prices of vintage Rolex watches and wonder if they buy a new Rolex now and keep it in the family for forty years or so, they can expect the same sort of increase in value.

I feel like it's a legitimate question, and the OP has a point that there can be some sarcastic replies. Not everyone has the same level of understanding of the watch market as a WIS who has been collecting for 10 years and has a few thousand posts on TRF under their belt.

[BLACKHORSE 6]

Originally Posted by T. Ferguson

Sure there is bound to be the odd elitist comment once in awhile but by and large people around here are well meaning and probably correct to caution someone about entering into a Rolex purchase with an expectation of a future increase in value. Modern watches are no place to be investing money especially if you don't have a lot of it.

As for the SD4K, if it is discontinued it's probably because it hasn't sold well, so I doubt resale will be great. Now, 50 years from now it may indeed be sought after, but who knows? So buy it because you want it.

Keep in mind that Rolex future values are largely determined by the company's ability to continue to raise prices. My Sub I paid $1,900 for is worth more today mainly because a new one now costs $8,600 and not because the 16610 is discontinued. At some point Rolex pricing may meet resistance or hit the wall. Resale values will probably come to a standstill at that time.

Very insightful post.

[MonsterSS]

Personally, I see it as a financial investment, and a personal investment. As with any investment, it could turn for the good or the bad. For me mostly, owning a rolex brings me a sense of pride knowing that I have worked hard and now have something really nice to show for it. It's a watch that it's not a necessity, but rather a luxury :-)

[Punchthefatkid]

Originally Posted by douglasf13

I can't imagine using credit to buy such an expensive luxury item, and at least a bathroom adds some equity into your home, but certainly to each his/her own.

I think you will find most luxury items people purchase these days are on credit whether it be watches, cars, expensive jewellery or even holidays.

The cost of living is so high that the average family can only just about make ends meet with day to day expenses I.e mortgage/rent, utilities, food shopping, insurances, kids etc etc...

There's not a lot of spare money around for non essential or luxury goods so 'credit' is the ONLY option for most.

How many new cars on the road these days are actually bought and paid for? Not many, the majority are on finance deals or credit.

Why should high end or luxury watches be any different?



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