Gold all the way up

[Escobardee]

With gold prices now breaking new records are Rolex going to do another price rise this year again and if not are we going to see from January 1st 2025 a major price increase on all gold Rolex models ?

Not saying this is going to happen but last time gold went really high this year they did a second price increase within a year

[1st amg]

You might be on to something. We shall see


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[Daytona king]

Glad I got my gold watch before the next price increase. I think the price increase from last year to when I bought mine was a healthy $3k


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[996marty]

I’m sure for that very reason they’ll increase prices

[Bro Watch]

Depending on when you purchased your gold watch, it may be worth its weight in gold if the prices continue to rise.

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[StackLexus17]

Possibly.

I would think the gold market prices increase does warrant a larger Rolex gold watch price. increase.

However, the Rolex will mastermind a pricing sweet-spot that accounts for the market price increase and at the same time is price conscious to their customer base for gold watches.

Remember that Rolex's gold models aren't the coveted pieces in the Rolex catalogue.

[1William]

I don't see it. The gold only makes up a fraction of the overall cost of the watch. Many place values on PM items based on this but few items are pure so it is a fraction or percentage.

[hojlund]

Originally Posted by Escobardee

With gold prices now breaking new records are Rolex going to do another price rise this year again and if not are we going to see from January 1st 2025 a major price increase on all gold Rolex models ?

Not saying this is going to happen but last time gold went really high this year they did a second price increase within a year

then if gold price fall would rolex decrease the msrp of their gold watches?

[SLWoodster]

lol. You’re too naive. Don’t worry. I also wished they stopped raising the prices when we all know despite all their engineering prowess, the Chinese factory can make 95% of same thing for less than $350.

They been raising it for years based on spot price. So it has already been happening.

They don’t really care whether manufacturing costs actually go up significantly. It will be about what the market can bear. If necessary they can discount. Over 100 years of history. Only the last 4-5y have they taken away discounting.

Originally Posted by 1William

I don't see it. The gold only makes up a fraction of the overall cost of the watch. Many place values on PM items based on this but few items are pure so it is a fraction or percentage.

[RKFdds]

Is there consensus on whether lux watch prices on the secondary market are falling? I’ve heard lux items are decreasing in value due to bidenflation/credit crisis/folks running out of $$


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[Escobardee]

Originally Posted by hojlund

then if gold price fall would rolex decrease the msrp of their gold watches?

Great point but that will never happen but a very good point indeed

[SLWoodster]

Secondary luxury watch prices have been falling since 2022.

Pretty much every basic hype watch was affected. Different models were affected to differing degrees. But a 40-60% reduction in price from peak is normal. Stainless daytona at $50k-60k, now at $25-30k. 16202st at over $100k, now settling in the 60's. 5711 at $150k, now at $90k. Tiffany x Patek 5711 at $3m, now at $1.2m

But it is also widely subjective based on what categories you are paying attention to or consider luxury. It is similar to other collectibles markets. Your modern G Wagon is now being sold below retail. But that restored 300SL gullwing is still smashing records.

Collectibles of the highest, "investment grade", upper echelon, actually rare in absolute numbers collectibles have increased in price. Example - There is a 16599 rainbow daytonacoming up for auction in November 2024. First of its kind. That will smash records despite daytonas falling about 40-50% in pricing over the last 2 years. The auction house's estimate is $3.5m There are vintage dealers estimating much higher including an unbelievable estimate of $7m. The onlywatch Patek this past year was sold for $16m. Another broken record.

The first gen Milgauss, one of the first gemset gold daytonas, both smashed records in 2023, despite the majority of the modern and vintage Rolex preowned prices continuing to dip.

Last year, Marlon Brando's GMT came up for resale for the 2nd time in 4 years. Its 2019 price then was over $2m. Now it's $5m.

New releases still have a massive premium but then trend down. One example is the new "Bruce Wayne" GMT released in April 2024. Could be purchased in that time above $20,000. Now it is below $20,000

The Pepsi prices were also confusing for many because there was a discontinuation rumor. Starting around holidays 2023, the Pepsi went from below $20,000 to over $20,000. After no discontinuation announcement, it has come back down. There was at least a 20% bump in fluctuation due to discontinuation rumors.

Recently smaller jewelry style watches have also been trending. The trend actually began about 5 years ago. Preowned watch dealers such as Eric Ku have been talking about it for awhile. But recently it's been super charged by celebrities wearing smaller watches like cartier and other gold watches. So the gold Piagets, old Cartiers, Patek Ellipse, 36mm day date, Rolex King Midas, some of these have actually increased in value despite the regular run-of-the-mill submariners, GMTs, daytonas, aquanauts, royal oaks losing 40% of their 2022 value.

Originally Posted by RKFdds

Is there consensus on whether lux watch prices on the secondary market are falling? I’ve heard lux items are decreasing in value due to bidenflation/credit crisis/folks running out of $$


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[brandrea]

At todays gold price the material is certainly a big cost component

[chro.nic]

Here in Canada we had a pretty big jump January 1st, and then another one June 1st.

The June increase was mostly on precious metal models, and it was attributed to rising gold prices.

.nic

[Escobardee]

Originally Posted by chro.nic

Here in Canada we had a pretty big jump January 1st, and then another one June 1st.

The June increase was mostly on precious metal models, and it was attributed to rising gold prices.

.nic

Same her in the Uk we have had two this year - mmm maybe another one or maybe not but definitely on January 1st 2025 expect a hefty increase

[TimeToTell]

Originally Posted by 1William

I don't see it. The gold only makes up a fraction of the overall cost of the watch. Many place values on PM items based on this but few items are pure so it is a fraction or percentage.

When looking at the total weight of gold in a Day Date 36, at current spot price, the gold value is approximately 20% of the current Rolex retail price. It was closer to 10% not too long ago.

[RotorSelfWinding]

It's going to be Rolex's excuse, but it's not actually going to be that meaningful either way. They price these watches very high.