Rolex as investments question

[Numismatist]

Originally Posted by 2careless

Thanks guys. I fully concur that watches are meant to be worn and used, not as safe queens.

Personally I haven't got a big watch collection, only 3, and I wear them all in rotation. However, I'm very fond of pens and have a small collection of vintage and modern pens, mainly Montblancs.

I was in an argument with another gentleman elsewhere about pens as investments. To me pens are even worse "investment" than watches, and pens are supposed to be used. OTOH he was saying his new, sealed pen "investments" has beaten S&P 500 over the past 10 years. I was saying a term deposit would run ahead of pens.

So I want to see if there are these people here also. My humble apologies if this has offended anyone.

Hey Kai! No offense at all...I'd love to see a good analysis of the matter. Money spent on fine pens (you have a great collection btw), and fine watches is well spent regardless of the return. The return is emotional and enjoyment, any $ gained is a bonus

[Pep04]

I see them as an investment. But, purely on the fact that when you buy today, you'll be saving from the price 10 years from now because of the increases!

That's how I sell the idea to my wife. :r ofl:

[derekloimer]

An investment is an asset that is capable of generating a return. It is possible to buy and sell watches at a profit. However the watches that are likely to improve in value in time are those that are in scarce and in high demand. Given that Rolex make over a million watches a year it is unlikely that current production Rolex watches are likely to appreciate over time. The Rolex watches that have appreciated the most are those that sold poorly at the time then were in demand later.

[padi56]

Originally Posted by 2careless

Thanks guys. I fully concur that watches are meant to be worn and used, not as safe queens.

Personally I haven't got a big watch collection, only 3, and I wear them all in rotation. However, I'm very fond of pens and have a small collection of vintage and modern pens, mainly Montblancs.

I was in an argument with another gentleman elsewhere about pens as investments. To me pens are even worse "investment" than watches, and pens are supposed to be used. OTOH he was saying his new, sealed pen "investments" has beaten S&P 500 over the past 10 years. I was saying a term deposit would run ahead of pens.

So I want to see if there are these people here also. My humble apologies if this has offended anyone.

Not offended can assure you,but lately on TRF these types of posts are almost on a daily concurrence.And as a moderator we do have to read most posts.But will still stick to my original opinion Rolex watches today by many are just seen as purely as $$££ signs.Yes Rolex watches have for the past 30 odd years always had a good resale value.But Rolex watches are for wearing and enjoying in good health hopefully for all your life its not all about ££$$.

Originally Posted by padi56

Its sad today that a brand with all the steep history that Rolex has, have now by many thought of as just as nothing more than $$$$$£££££.Rolex watches are meant to be worn and enjoyed and not sat in some safe hoping to make a fast buck.When I see posts like this it really saddens me after spending many years learning about the brand,and spending many hours on TRF helping you guys with information.But now on TRF all we seem to get now is how much is that worth will this go up or down etc.Perhaps now its time for this old guy to hang up his hat and retire,because I always thought Rolex watches were for wearing and enjoying.

[francisvilla]

i recently bought a pre used sub with date @ $4,500. the seller friend told me he purchased it brand new in 1996 @ $2,313. COOL!

[delldeaton]

Originally Posted by padi56

Not offended can assure you,but lately on TRF these types of posts are almost on a daily concurrence.And as a moderator we do have to read most posts.But will still stick to my original opinion Rolex watches today by many are just seen as purely as $$££ signs.Yes Rolex watches have for the past 30 odd years always had a good resale value.But Rolex watches are for wearing and enjoying in good health hopefully for all your life its not all about ££$$.

As someone who finds value here and there on TRF, as well as enjoying your particular brand of input, I must respectfully disagree.

This isn't a mutually exclusive proposition. I frequently wear my 16610 Submariner Date, never baby it. At the same time, part of the enjoyment of that is in the fact that I do both and know that I could sell it tomorrow for more than I paid for it (even if I didn't have its original documentation and packaging).

That is another part of its story. And something most other people wearing most other brands purchased at the same time, same price point, can't say.

I'd also add that buying a watch and putting it away for 10 years is hardly a "quick" turn. It also seems to omit any number of additional cost considerations in keeping such an "investment" viable. Cost of the safe. Managing the humidity and other environmental conditions that will compromise storage of things (as opposed to, say, investments in stocks). Insurance against loss. Moving expenses (on average, most folks will change homes before the hold-time on the watch runs out, meaning transport of not just the timekeepers, but also the safe). Resource opportunity costs, eg, other stuff can't be in a safe filled with watches; safes take up space.

Believe me: There are odd obsessions here that astound me as much as anyone (eg, the people who claim to have no interest in James Bond, as expressed by condescending posts claiming to "not care" because "James Bond is only a fictional character" - oblivious to the fact that their very investment in writing such things undermines their claims).

But it's those spices that stir others here to an ultimately better mix, in many cases.

[Megalobyte]

I spend most of my money on watches, guns, cars and hookers, the rest I just wasted.

[delldeaton]

Originally Posted by tummodskichoot

... buy real estate....

Real estate?

[dcash0615]

Absolutely real estate. Affordability is at historic levels. Prices down 40+% off 2006 highs and mortgage rates at historic lows. Great time to buy and hold. Even if prices do drop another 10% that will be offset with higher borrowing costs down the road. Just my opinion...

Originally Posted by delldeaton

Real estate?

[L-16610]

only if you buy second hand you might gain some value
But it will never happen with a new at listprice

But still, MOST watches are not good investments
Ofcourse there are always exceptions

[brkanand]

No. Some people consider Rolex as cash on wrist..in case of a dire emergency! - anywhere in the world!

[Numismatist]

Watches, real estate, whatever...it's a market...if you buy right and sell right you make money. You do it wrong, you loose money

[apan]

I'd say it depends on your strategy.

Dealers / auction houses act as a "bank" in terms of flipping watches and profit off a spread.

But as for a "buy and hold" strategy - that is much harder! The only big gains have been those that were lucky/smart enough to purchase a rare/vintage piece back in the day. If we could only go back in time....

[cferrel]

I dont really care about my watch value. I am keeping it for life but I might add to my collection though.

You will be better off buying stocks into the dips and to not sell when everyone runs for the hills. However, investing is my business and I do not get emotional about my cash. Why not visit a financial adviser if you need help. That could be good for a 2nd opinion. Depending on the area buying rental homes might be good if you get a good pre calculated return.

[delldeaton]

Originally Posted by Numismatist

Watches, real estate, whatever...it's a market...if you buy right and sell right you make money. You do it wrong, you loose money

Indeed: Emphasis on "whatever." This is really the point at which I was ultimately driving.

[yemenmocha]

Bad investment.


Also keep in mind the favorable returns on investment from ones in previous decades are due to rarity, and current Rolexes (with few exceptions) are made in much higher quantities. Similar thing occurred with baseball cards.

[yemenmocha]

Originally Posted by Pep04

I see them as an investment. But, purely on the fact that when you buy today, you'll be saving from the price 10 years from now because of the increases!

That's how I sell the idea to my wife. :r ofl:

For her sake I hope she had ECON 101 and remembers the difference between real and nominal value!

[rusminag]

We tell our CFO(wife) that it is an investment, so that she can release the dough for the Rolex.

On similar note, there are several factors to consider when buying watches:
(Not in any particular order):
1. Functions(complications)
2. Design
3. Auto, Manual or Quartz
4. Price
5. Price vs Emergency Resale Value
6. Heritage
7. Comfortness
9. Wrist fitting
10. Brand goodwill
11. Wannabe
12. Sales Agent service
13. Product referral
14. And on.. and on... and on...

So... there are many factors that lead us before we depart with our hard earned cash and investment is not one of them.

Only watch seller consider watches as part of their investment.

[globalmedia33]

no.

[Pep04]

Originally Posted by yemenmocha

For her sake I hope she had ECON 101 and remembers the difference between real and nominal value!

She's an accountant, so it is a tough sell!