Looking to beat the Dow Jones? Investing in Rolex Watches
Even people unfamiliar with watches probably know Rolex. It is the largest watch brand in the world and one of the most recognizable brands on the planet. It is synonymous with success, prestige and luxury – which means a lot of money.
Speaking of big dollars, people who are familiar with watches have long known that investing in Rolexes is a good decision. Demand is so high for high-end watches that virtually every model they sell resists depreciation or quickly begins to appreciate as soon as you leave the store – with popular vintage models such as the legendary “Paul Newman “Daytona ranking among the most sought-after watches on the planet.
But even seasoned watch collectors might be surprised at how well Rolexes perform as an investment when you sit down and crunch the numbers. Luckily, leading vintage Rolex dealer Bob’s Watches has indeed calculated the numbers for us, and their results are truly astounding.
The essential? Over the past decade, Rolexes have not only outperformed the US housing market and proven to be a better investment than gold, they have offered better returns than even the bloody Dow Jones.
“Assessing the percentage increases in gold and real estate, based on inflation-adjusted values for gold from macrotrends.net and data on median selling prices of homes sold to United States from the FRED (Federal Reserve Economic Data) database, Rolex watches significantly outperformed both,” Bob’s Watches report relates.
Additionally, “with respect to the Dow Jones Industrial Average…returns were comparable over the decade, but Rolex has produced significantly higher appreciation percentages over the past five years.” This means that over the next decade, the Rolexes will more than likely eclipse the Dow Jones… Which is to say, they’re a better bet.
“Even compared to traditional investment classes, such as gold, the stock market and real estate, the 10-year appreciation that can be seen in the average price of pre-owned Rolex watches is still incredibly impressive.”
The report also reveals how the COVID-19 pandemic has driven up Rolex prices, with Bob’s data revealing that the average price of a pre-owned Rolex watch has risen from under US$5,000 in 2011 to over US$13,000 by the end of 2021.
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That alone is an impressive increase, but when you consider that the price growth since The Spicy Cough debuted in 2020 is nearly equal to the total price increase over the past five years – and that trend doesn’t show no signs of slowing down as we enter 2022 – the business case for investing in Rolexes becomes even more compelling.
Unsurprisingly, the highly requested Daytona is the most popular Rolex model. The average price for one of these coveted chronographs has more than tripled over the past 10 years, with Bob’s reporting an average used price of over US$30,000 for 2021.
Unfortunately, you cannot invest directly in Rolex as a business. Like many of the world’s biggest players in watchmaking, Rolex is a private company, owned by the charitable Hans Wilsdorf Foundation. We are sure that many investors would like to own a Rolex watch, but the best you can do is to own a Rolex watch.
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Of course, the other big advantage of investing in Rolex watches is that it’s an investment you can actually enjoy. You can’t wear an ETF or a gold nugget on your wrist, but you can certainly wear a gold Rolex Day-Date “President”. Even if you have to be careful with the increasing number of Rolex thefts…
Check out Bob’s Watches Rolex’s full report here and take a look at our list of the world’s most expensive watches of all time below.
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