Characteristics of Rolex as an investment

[Syed117]

There have definitely been some good points on both sides but,

Originally Posted by Armyguy03

It's a watch.

It's actually a little sad. I feel like anyone who is so concerned with the money aspect is just missing the point.

[kmleffler]

What would you rather have invested in 10 years ago, a $2,000 Rolex or $2,000 of Apple stock or Amazon stock. The Apple stock would be worth $94,000 and the Amazon stock would be worth $28,000. What would the $2,000 Rolex be worth?

[Aventura]

Great pleasure bad investment.Of course when they spend many years your money but is valued by inflation. Gold and silver are much safer.
Do not forget that it is impossible to sell a used watch by ebay, forums, etc. .. because nobody is going to send you money in advance to you, therefore you have to go to a dealer in your city and there you lose a lot. You are in his hands. Again great pleasure but bad investment.

[Vincent65]

Too much analysis over a common watch, IMHO - unless it's a super-rare vintage one, (or blinged out) worth many tens of thousands, it's likely a run-of-the-mill standard model, made in millions, and likely no more than a few thousand bucks (5-15k). Investment? No.
Nice thing to own, with a good resale value? Yes.

[Singslinger]

1) I think it's a big mistake to assume that ALL Rolexes rise in value over time.

2) Even if you manage to successfully identify the model that will appreciate, you'd have to buy a dozen or more and hoard them for this whole "investment" thing to be meaningful.

To me there's not much point in making say 20% or even 50% after holding something for several years if the absolute $ value is only a few thousand dollars. Yes you can pat yourself on the back and say you've beaten inflation, the index or whatever benchmark you've set yourself, but how much money have you really made from just one watch?

If however you bought 10 or 20 or 50, now that's different - then again now many watch buyers would actually do that?

Bottom line - buy the watch to wear and enjoy. Period.

[impalass]

Originally Posted by Syed117

There have definitely been some good points on both sides but,



It's actually a little sad. I feel like anyone who is so concerned with the money aspect is just missing the point.

[beshannon]

Originally Posted by Syed117

It's actually a little sad. I feel like anyone who is so concerned with the money aspect is just missing the point.

I agree.

I believe this is the rationale for calling a luxury item an "investment". It is justification for the decision.

The Swiss watch market is especially sensitive to economic depressions, and finds itself always having to aim where new money is. This is because high-end wrist watches for the most part are a poor economic investment. You should buy them because you love them, because they are beautiful, and because you want to wear them. Not because you think they will hold or increase in value.

http://www.forbes.com/sites/arielada...oks-not-value/

[datejusting]

If you want a Rolex and you can afford to buy it, that is sufficient justification to do it. It is definitely not an investment though.

[skyman51]

If you are buying a Rolex as an investment, I would tell you buy a Timex to know what time it is.

[troelsit]

You need to determine what "good" is. You can relate to stock investment, house investment, car investment, etc

But as mentioned before I wouldn't look at a Rolex as a financial investment.

More as an investment in happiness and goodfeeling when you are looking at it. It could also be an investment in a familything you could offer your kids, etc.

[diver2012]

Originally Posted by kmleffler

What would you rather have invested in 10 years ago, a $2,000 Rolex or $2,000 of Apple stock or Amazon stock. The Apple stock would be worth $94,000 and the Amazon stock would be worth $28,000. What would the $2,000 Rolex be worth?

It's easy to pick shares which have gone up with hindsight and use them in such an example.

There are many which have dropped in value over the last 10 years too though...

[diver2012]

Originally Posted by Syed117

It's actually a little sad. I feel like anyone who is so concerned with the money aspect is just missing the point.

I see it the opposite way.

If people think watches will hold their value - they end up prepared to pay more than they would have paid if they thought it would lose money.

[jay1988]

Originally Posted by kmleffler

What would you rather have invested in 10 years ago, a $2,000 Rolex or $2,000 of Apple stock or Amazon stock. The Apple stock would be worth $94,000 and the Amazon stock would be worth $28,000. What would the $2,000 Rolex be worth?

Do you have a crystal ball ?

If not then the chances are you won't make that kind of money.

Also given how things have gone over the last 10 years, there's a good chance that $2,000 is now worth less or nothing.

[chicfarmer1]

Originally Posted by diver2012

I see it the opposite way.

If people think watches will hold their value - they end up prepared to pay more than they would have paid if they thought it would lose money.

A paradox, since the more you pay the worse your future return.

[Im Lauf der Zeit]

Originally Posted by Singslinger

To me there's not much point in making say 20% or even 50% after holding something for several years if the absolute $ value is only a few thousand dollars. Yes you can pat yourself on the back and say you've beaten inflation, the index or whatever benchmark you've set yourself, but how much money have you really made from just one watch?

Aside from the poster who called the whole discussion "sad" the above quote makes the most sense. Win or lose we are not talking about an asset where as a non-dealer you can even allocate a significant of money without running into issues of liquidity, storage & service costs, transaction hassles.

But the award for best answer on this topic goes to the poster who praises how easily watches can be hidden from creditors... I imagine him holed up in an empty home (a protected asset in his state of FLA) dipping into a secret supply of Rolexes to sell (on TRF, Craig's, Ebay, local pawn shop?) when he needs cash to eat and pay lawyers...

[Rodentman]

Obsession with profit, greed, and "flipping," = source of many of the world's problems.

[seabreeze]

Originally Posted by diver2012

It's easy to pick shares which have gone up with hindsight and use them in such an example.

There are many which have dropped in value over the last 10 years too though...

IF I only knew to keep
1. My GI Joes,
2. My Metal Lunchboxes,
3. My stingray bikes
4. My baseball cards
5. My 60's and 70'sFender tube amps
6. My Guild Starfire, Fender Tele ( i did manage to hang on to my les paul :) )
7. My 68 Camaro - Chevelle SS, Olds 442..keep going

You just dont know

[Z06Seal]

I would say it could be depending on how it's utilized.

You can buy a specific exotic car, and within time, it could go up in value (imagine a mint condition '67 Camaro SS with 10 miles that was garage kept), but if used, not so much....

I'm not the kind of person that collects to invest.

I'm also a gun nut, and I have several high end modern weapons. For example my H&K Mk23. I bought it for 1700, and it has been floating around that price for about 10 years now. if I used the crap out of it and it was beat up, I probably could sell it for 1200.

same with a rolex. if I don't ever wear it and keep it for 30 years, I'm pretty sure it will go up in value. but I utilize my equipment, so I don't even think of it as an investment.

but yes, if properly utilized as a long term investment. It would go up in value.

considering you could buy a GMT for about 700-1000 in the 80s, and now about 8,500, that can show.

I personally think guns are better investment. (or parts)

you can buy an AR15 magazine for about 20 bucks when there is no gun craze. once something happens major, they quadruple in value (sometimes more)

[1911]

The maintenance cost is a big consideration.

[GreatCircle]

For everybody who understands German, a nice 5 minute video about watches as an investment, lot's of Rolex material passing by in the video !

http://mediathek.daserste.de/sendung...e-?buchstabe=R

[Olav16710]

All I know is that I have had my GMT Master II since '96 and have enjoyed every second wearing it.

I just recently bought a Milgauss and am totally enjoying it too.

I love to glance at it and feel its weight against my wrist.

I feel naked without one of my watches perched upon my wrist.

This alone is worth the "investment" into a great watch with lasting qualities.

(I don't think I answered any questions but I just was inspired)

[Micha]

Originally Posted by kmleffler

What would you rather have invested in 10 years ago, a $2,000 Rolex or $2,000 of Apple stock or Amazon stock. The Apple stock would be worth $94,000 and the Amazon stock would be worth $28,000. What would the $2,000 Rolex be worth?

don't fall into the trap of using extremes.....and that is exactly what you are doing. What if you invested in Lehman Preferred? Remember, they were WIPED OUT!!! But your Rolex is still ticking......diversification is a must

[Micha]

Originally Posted by GreatCircle

For everybody who understands German, a nice 5 minute video about watches as an investment, lot's of Rolex material passing by in the video !

http://mediathek.daserste.de/sendung...e-?buchstabe=R

Vielen Dank mein Freund

[Rolexwatch]

Originally Posted by Olav16710

All I know is that I have had my GMT Master II since '96 and have enjoyed every second wearing it.

I just recently bought a Milgauss and am totally enjoying it too.

I love to glance at it and feel its weight against my wrist.

I feel naked without one of my watches perched upon my wrist.

This alone is worth the "investment" into a great watch with lasting qualities.

(I don't think I answered any questions but I just was inspired)

Nice thoughts, I feel the same.

(...but also feel happy that I can sell this DSSD I bought in june 2012 for ~7000€ (Taxfree) I can sell it now used for more than that )

[jrgougeon]

Originally Posted by dcash0615

Some very good opinions have been made here. My personal opinion is that a Rolex is not an investment. I buy to wear not to speculate on a possible price appreciation.The way I look at it is a Rolex, if bought right, can be worn for many years and resold when ready to move on at a price around what you originally paid or more possibly. What a great way to own and wear a high quality watch for next to nothing. You really can't say that if you were to buy several <=$200 watches over the same period of time. Resale value is next to $0 on those so they in the end cost you more to own.

This post sums up my thoughts perfectly and saved me typing them out.

[69mach351]

This is a tricky one. I think are far to many variables and uncertainties to consider modern pieces for investments. If you bought some popular models 20 years ago (sub/dj/gmt) then you could get more than you paid for it if you were to sell it today. I am guessing a lot of that is based on Rolex exponentially increasing their prices over that time period. Just because Rolex has done that over the last 20, doesn't mean they will or can over the next 20. I am guessing that this would slow the price increases on the used models as well. Also, take into account opportunity cost and inflation, and it may not look as good as it did.

That said, if you get enjoyment out of it and are smart about it, you can have an expensive hobby that doesn't really cost you much in the end. I love it when people tell me that what I spend on watches is absurd, but they have 3 motorcycles, 2 non running ones, a few "toy" cars, yard art, and more "as seen on TV" crap than has ever been seen on TV.

[mr.president1]

Wow.... A ton of annoying responses on this one here... I think what it boils down to this guys.... If you want a Rolex then it might be an investment to buy it considering in 10 years it will be worth more and can be sold for probably the same price as you bought it... (Possibly of course). Not bad if you actually wanted a luxury watch and wanted your money returned later on.