Purchasing a RG DD40 with current savings

[Dandoun]

Gents,
I'm not really sure at what stage people start investing in 20k+ watches, so i would like to obtain your opinion in spending the money on a red gold DD40 while having 300k in the bank as savings. No car, college, house or whatever is getting paid it is just pure savings waiting to be invested in something (apartment at some point, master's degree maybe etc).
Thanks

[Chadridv]

I definitely wouldn't consider it a traditional investment unless the return is enjoyment.

With the right discount you might be able to sell the watch for close to what you paid for it 10 years from now, so that's hardly an assett, HOWEVER it's not quite a liability either.

So if you can afford and have no other financial obligations holding you back, now is as good a time as ever to buy a watch and start enjoying it. I don't know anything about your lifestyle though but personally a DD40 could never be a one and only watch. I would never own one if I didn't already own a submariner. Again, depends on your lifestyle but that's just me.

[hhcave]

Originally Posted by Chadridv

I definitely wouldn't consider it a traditional investment unless the return is enjoyment.

With the right discount you might be able to sell the watch for close to what you paid for it 10 years from now, so that's hardly an assett, HOWEVER it's not quite a liability either.

So if you can afford and have no other financial obligations holding you back, now is as good a time as ever to buy a watch and start enjoying it. I don't know anything about your lifestyle though but personally a DD40 could never be a one and only watch. I would never own one if I didn't already own a submariner. Again, depends on your lifestyle but that's just me.

Hmm... I'm down about 1 DD40's worth of $ on my stock portfolio this year. Maybe a PM Rolex was the better 'investment' this year...

[beer]

Originally Posted by hhcave

Hmm... I'm down about 1 DD40's worth of $ on my stock portfolio this year. Maybe a PM Rolex was the better 'investment' this year...

im with you here

plus i am from britain...i would have been better off putting my entire savings account into rolexes since the brexit

[jctrolex]

A watch is seldom an investment in terms of monetary return. However, if you have $300k in savings I don't think spending 20k on a watch that you'll enjoy is extravagant if you don't have other obligations.

[Dandoun]

Yes i meant spending it for enjoyment, not as an investment, i never buy any watch as an investment.
I have a platty yachtmaster, breitling chronomat b01, older Cartier santos-dumont and a discontinued baume et mercier capeland S. In desperate need of some precious metal but i was just wondering if it wouldn't be too extravagant with current situation. Thanks for the responses.

[Cru Jones]

How about celebrating an apartment or the master's degree by having the watch come second (or third)? That's what I would do. YMMV.

[Dandoun]

Originally Posted by Cru Jones

How about celebrating an apartment or the master's degree by having the watch come second (or third)? That's what I would do. YMMV.

Definitely what keeps me from purchasing right away..
Plus the cost of weddings in Lebanon is 80k+. Apartments 300k+. Masters probably around 80k. On the other I will never be able to purchase one anytime soon if i don't do it now..

[AgentHsu]

Can you get a loan for your home, with a down payment?

If so, I'd take out a mortgage and buy the watch.

[Gaijin]

I know what Suze Orman would say.. "Denied!"

[MonBK]

If you have to ask you're not ready.

[brandrea]

Originally Posted by MonBK

If you have to ask you're not ready.

This

Sounds to me like you'll have buyers remorse if you do. Take some of those other things off your checklist first, get settled and then pull the trigger.

[brettpaul]

The only Rolex watches you should purchase as an investment would be Paul Newman Daytonas, Comex/Mil/Red Subs, Double Red Sea Dwellers, Patrizzi/Zenith Daytonas, and maybe a few others...

A current model precious metal Rolex will likely only hold it's current value in the future as none are considered "collectible" IMHO....the only ROE you'll see on this model is Return on Enjoyment (not Equity)! :thumubsup:

FWIW - that is a lot of cash to be sitting in the bank and NOT working for you..

[Dandoun]

Originally Posted by brettpaul

The only Rolex watches you should purchase as an investment would be Paul Newman Daytonas, Comex/Mil/Red Subs, Double Red Sea Dwellers, Patrizzi/Zenith Daytonas, and maybe a few others...

A current model precious metal Rolex will likely only hold it's current value in the future as none are considered "collectible" IMHO....the only ROE you'll see on this model is Return on Enjoyment (not Equity)! :thumubsup:

FWIW - that is a lot of cash to be sitting in the bank and NOT working for you..

Don't really want to turn this forum into an investment consultancy forum hahah but banks in Lebanon do give a healthy steady 5.5% yearly interest on money in the bank, that's not bad at all when compared to stocks, while waiting to find something really worth investing money in. I'm currently living in Oman, lots of construction going on i'll be trying to squeeze myself in the domain so these savings could also be used for that. Life is really uncertain..

[AK797]

Originally Posted by Dandoun

Don't really want to turn this forum into an investment consultancy forum hahah but banks in Lebanon do give a healthy steady 5.5% yearly interest on money in the bank, that's not bad at all when compared to stocks, while waiting to find something really worth investing money in. I'm currently living in Oman, lots of construction going on i'll be trying to squeeze myself in the domain so these savings could also be used for that. Life is really uncertain..

5.5% is fantastic, you could just spend the interest on a nice Rolex for a couple of years and then trade up to the DD. Would be a natural progression. I would try not to touch the lump sum until you have house and garden all sorted out.

[daloon]

Originally Posted by Dandoun

Don't really want to turn this forum into an investment consultancy forum hahah but banks in Lebanon do give a healthy steady 5.5% yearly interest on money in the bank, that's not bad at all when compared to stocks, while waiting to find something really worth investing money in. I'm currently living in Oman, lots of construction going on i'll be trying to squeeze myself in the domain so these savings could also be used for that. Life is really uncertain..

5.5% is unreal. That's the same return as SP500 YTD. What's the catch?
Maybe I should open an overseas account in Lebanon lol

[AnnemarieGirl]

I wouldn't buy a precious model watch of any brand with this amount of savings. Especially if you don't have home(s) and car(s) paid off in full first. Prioritise and buy luxury items with disposable income only.

[Dandoun]

Thank you for the responses.
I don't want to sound like a spoiled trash, but the family does have a couple of houses and lands so the housing is not the priority and i do have a car paid for. I would really like to depend on myself only though, which is why i do feel there are more important things to spend money on in the near future. In any case last responses make sense, if i'm asking it means that i am doubting this purchase.

[benlee]

Some people are comfortable with spending their disposable income, some are not and prefer to save everything until everything else is secured and fully paid for ( house, car, children etc ). Also your age is a factor. If you are still young and have a secured source of income, it should be do-able.

Ultimately, it's a very personal decision what you do with your money. No right or wrong answer IMO, as long as you are not going into debt and already have your basic needs catered for including sufficient savings for rainy days.

[1William]

Being on a watch forum and not an investment forum you will hear a lot about get the watch. Get the watch! I would not wait and my only concern would be the model and dial color. The way that you explained it you have reasonable savings, steady income and come from a family with resources. What is holding you up except yourself and other outside factors. Buy the watch right and even if you should need to move it you will not lose much, if any at all, depending on condition and age. You have just transferred one form of money to another. Get the watch, wear it, enjoy it and move on.

[Emreozcan]

Firstly, congrats and good for you to have such pure savings. I agree to the others that buying watches shouldn't be the first option to make an investment.

If you want the watch you'll buy as an investment I would go for a 116500 Daytona-C as it's the first SS + Ceramic Daytona and it will most probably increase its value over time. Maybe you can find a 16710 pepsi GMT or a Sea Dweller D-Blue. I also think market price of those watches will increase in time.

In addition to your "investment" watch, you can buy another one you like to wear on rotation so your "investment" watch will not be rugged easily. Who knows in the future maybe you'll sell a Daytona-C as high as Paul Newman Daytonas go now.

[padi56]

Originally Posted by Emreozcan

Firstly, congrats and good for you to have such pure savings. I agree to the others that buying watches shouldn't be the first option to make an investment.

If you want the watch you'll buy as an investment I would go for a 116500 Daytona-C as it's the first SS + Ceramic Daytona and it will most probably increase its value over time. Maybe you can find a 16710 pepsi GMT or a Sea Dweller D-Blue. I also think market price of those watches will increase in time.

In addition to your "investment" watch, you can buy another one you like to wear on rotation so your "investment" watch will not be rugged easily. Who knows in the future maybe you'll sell a Daytona-C as high as Paul Newman Daytonas go now.

Why would you think the Daytona C will go up in value, give 5-10 years there will be thousands of them around possibly a million just like the SS bezel version.I would doubt if any modern day Rolex will ever see the prices of the vintage Daytona ETA Valjoux powered ones.