In March, the price of a used Rolex Daytona watch reached $48,500. Since then, prices have become a bit more “realistic” and are now hovering around $30,000 on the used market, according to WatchCharts.
The value of Rolex as an investment has outperformed other assets such as gold and the stock market over the past decade. On Chrono24, a popular luxury watch marketplace that boasts investors like French billionaire Bernard Arnault (who this year overtook Elon Musk as the world’s richest man) About 25% of searches are related to Rolex.
About 14% of the platform’s sales come from Rolex watches, and 80% of those are pre-owned.
“We are still seeing higher prices for most watches than we did in January this year,” says Tim Strack, founder of Chrono24, “but not as crazy as March and April.
According to Chrono24’s data, the spectacular rise in prices has primarily affected what Stracke calls the “3 Magnificent” brands: Rolex, Patek Philippe and Audemars Piguet.
Other watch brands, however, have only seen what Stracke calls “very, very steady, slow but steady growth over time.”
Rolex’s long-term investment potential
Back in February, Paul Altieri, CEO of online watch resale marketplace Bob’s Watches, told Business Insider that “Rolex has been a good investment for years, but not like the last 5.”
Over the past decade, Bob has been buying and selling thousands of watches using a consistent pricing strategy, which has given the company unique insight into the true market value of each Rolex model.
One of the reasons for the rapidly rising prices of Rolexes in recent years is the reduction in supply. rolex manufactures approximately 800,000 watches per yearBut the popularity of the brand means that demand far exceeds supply for new watches, fueling a strong second-hand market.
In fact, Rolex’s average sales figures show an increase in early 2017, followed by an even greater increase in 2020. In February 2022, the average price of a Rolex was over $13,000, almost triple As of 2011 ($5,000).
“Before you even leave the store, it’s worth double or triple what you paid,” Altieri says. And that is if you can find an authorized dealer who will sell it to you.
“People who have waited a year or two for their name to appear on the buyer’s list are not going to sell it,” says Altieri.
Limited supply is perhaps one reason why Rolex launched its own Certified Pre-Owned watch program in December.
“It allows the purchase of second-hand watches that have been certified and guaranteed by the brand itself. The aim is to add value to the existing offer. When these watches change hands, their authenticity is certified by the distributor official at the time of resale. should go.” Rolex explained in the press release announcing the event.
According to a McKinsey report, the current total value of the pre-owned luxury watch market is estimated at $20 billion, and is expected to reach $29 billion by 2025.
Stracke expects inflation to continue to drive demand and prices for the Magnificent 3 in the coming year.
“Many users buy a watch not only to enjoy the perfect craftsmanship, and its beauty, and brand status, but also for the stability of value. It is not just a piece of jewelry, and a category of luxury , but also the real asset class,” he says.