Rolex as an asset or not

[inadeje]

My take is that while they are not particularly an asset, it’s probably one of the few hobbies that the collector can easily not lose money on the pastime (if the right pieces are acquired). Making money or seeing a collections value increase is a mere byproduct of a good collection

[seabreeze60]

Legally a Rolex is an asset


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[IamJacky]

Originally Posted by inadeje

My take is that while they are not particularly an asset, it’s probably one of the few hobbies that the collector can easily not lose money on the pastime (if the right pieces are acquired). Making money or seeing a collections value increase is a mere byproduct of a good collection

This, totally agreed!

[rambo99]

i just wear my rolexes, i dont care the price hike after i bought them. someone in this forum do, but i will just enjoy them and have zero intention to sell any of them.

[peterpl]

They are assets - everything is pretty much an asset just like a bike or car or scooter.

The issue is Rolex's and watches in general are NOT in the same class as a house or shares and the view that this asset class is safe is an imaginary one.

Its a tangible luxury non essential item that has in recent years been hyped to death to portray itself as a commodity. I would never put my life savings in Rolex ever. Never ever.

I would however put my entire life savings into real estate/property or shares or a business.

[Ny325]

Never looked at it at a asset. It’s a watch I enjoy, and never sell. I think all the hype surrounding certain models, made it a asset.

I know someone who was offered $25k, for his Daytona Panda. He couldn’t believe it. He didn’t sell it, but was shocked at the offer.

[Token74]

I like to have savings for a rainy day just in case things get bumpy, but cash in the bank is hard to enjoy. My watch collection achieves the same thing as cash in the bank, but I’m able to enjoy it.

I sold most of my then-collection a few years ago to buy a new house to avoid having to increase my mortgage. I’ve since built up the collection again and although I won’t ever move House again, if a similar situation arose or of my business had a bad couple of years, I’d do the same again without any worry.

There are some extremely wealthy people on here that don’t need to worry about the asset value of their watches because it is a trivial percentage of their wealth. But for lots of folk (me included) i cannot pretend that items costing tens of thousands of pounds are not assets that might one day have to be cashed in.

This doesn’t mean i don’t enjoy them and spend my time worrying about protecting the asset value of them, people only need to see the state of my Patek 5990 to see that.

But i do understand those people that buy an expensive watch and are in a position where they need to protect the value a little because it is an extravagant purchase only justified by the fact that they can get the money back if they need to. My advice to those people would be to spend half as much and enjoy wearing it twice as much, but in principle i completely get where they’re coming from, and why the heck not.


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[goliat]

It's a watch.

[Tanvo]

Alternative asset.

[racingfreak]

Might not be an investment in the purest sense, but my Daytona, LV and BLRO have appreciated more than some of the other investments I hold.

The limiting factor with SS rolexes is the availability ie you can only buy 1 maybe 2 of each if you're lucky at c 10k to 15k each, this limiting factor is what dictates value in the parallel market. Tesla shares have daily volumes of 23m, so the limiting factor (in most instances) in that scenario is investable cash reserves although ultimate value is still dictated by demand/supply.

That being said, it's nice to know that you can wear and enjoy a timepiece for 6,12, 24 months and could then crystallise a profit and trade up to the next tier ie AP, PP etc

[jimcameron]

Asset? It depends on how good or how bad the World situation becomes in the future. If you can accurately predict that, then you should be able to figure out your question.

Bottom line is that a watch that is functioning tells the time. There are watches that cost 2milion, and watches that cost $10. They both do the same thing.

[zengineer]

The question was about considering a watch or watch collection as an asset, not about whether they are a good investment.

Of course they are an asset, just like my house, vehicles, firearms, collectibles and mechanics tools are. Technically, everything we own from socks to cars are assets if they have any value at all. For practical purposes, I think of assets as anything relatively easy to liquidate and with enough value to justify being a separate line item on a net worth spreadsheet, even if it's just the rough total for the collection. I do not list my socks, I do list a total for watches.

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[TswaneNguni]

An investment for the soul .

[996marty]

Originally Posted by Harry-57

Assets certainly. If they have value, even depreciating, they are assets. Investments? never. Watches are for wearing and enjoying. I am not a one brand collector, so the majority of my watches have lost considerable value. This doesn't bother me any more than the pieces which have retained or increased their value.

In my little world, land and property are for investment, stocks are for gambling, watches are for fun.

+1 on the above

[Tensai]

Remember when everyone was a day trader?
Remember beanie babies?
Remember when the value of a NYC taxi medallion could never go down?
Remember when everyone flipped watches because they thought they were “assets”?
Don’t get caught holding the bag.

[Golfbone]

Originally Posted by Tha Baron

You would have been better off buying S&P500 index funds...

You can't wear an index fund.

[Golfbone]

I bought an A serial Sub date with lug holes and SEL in 2007 used for 3400. I've enjoyed it for 13 years and now it is worth between 2 and 3 times that amount. This year I bought a SS ceramic Daytona from the AD for list price and I can sell it any time I want for at least 150% of what I paid. I also bought 2 OP 39s last year which are worth more than I paid for them and I have a 116509 which again is worth more than I paid for it. So right there you have what I would call assets one can enjoy. If someone else doesn't want to consider the amount of money that those pieces would fetch if I were to decide I've tired of wearing watches and want to buy something to hang on my wall rather than my wrist as a significant financial asset perhaps they have so much money that the amount is insignificant. But those folks are probably buying watches that are even bigger assets than Rolex are.

[ghassett98]

Assets - What you own

Liabilities - what you owe

It’s really that simple. So long one didn’t leverage the purchase using credit, it is an asset as the value of the item can be added towards your total net worth.


Again, not talking about if it’s a good investment, rather if they’re an “asset”. No different than a car or art collection. A diversification of a portfolio, and one that you can enjoy if you will.


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[racingfreak]

Originally Posted by TswaneNguni

An investment for the soul .

This

[Benzsiam]

Everything that have value are an asset. If you go bankrupt, they will take your assets and sell it to pay for your debt.

[fsprow]

An asset is anything you own which can have value if sold. An investment is an asset you purchase with the expectation that it will go up in value over time. While I don’t believe that mass-produced watches fit in the investment category, if someone wants to have a small amount of their investments as watches I wouldn’t argue with them.

[MrJKLFoams]

Its not its a watch. House and land is the best asset
.
.

[sgwatchguy]

Objectively, yes it’s an asset. All my watches get added up and into the personal balance sheet under other assets. Ok maybe all except the Apple Watch, that was just an expense.

[AkshayArgade]

i buy it as something i enjoy wearing, as a good quality product which i can use for years.. but the fact that it holds its value and even appreciate in the future gives me satisfaction that its worth it..

[JohnGingerwood]

Since they are expensive, and if you have multiple watches (rolex isnt the only nice watch, actually it is probably number 4 or 5 on the list) then yes I would categorize as an asset. Not an investment.

[Golfbone]

Originally Posted by goliat

It's a watch.

The one on the left is a watch. The one on the right is an asset (and a significant investment).

Glad we cleared that up.

[Oxfordian]

Originally Posted by Token74

I like to have savings for a rainy day just in case things get bumpy, but cash in the bank is hard to enjoy. My watch collection achieves the same thing as cash in the bank, but I’m able to enjoy it.

I sold most of my then-collection a few years ago to buy a new house to avoid having to increase my mortgage. I’ve since built up the collection again and although I won’t ever move House again, if a similar situation arose or of my business had a bad couple of years, I’d do the same again without any worry.

There are some extremely wealthy people on here that don’t need to worry about the asset value of their watches because it is a trivial percentage of their wealth. But for lots of folk (me included) i cannot pretend that items costing tens of thousands of pounds are not assets that might one day have to be cashed in.

This doesn’t mean i don’t enjoy them and spend my time worrying about protecting the asset value of them, people only need to see the state of my Patek 5990 to see that.

But i do understand those people that buy an expensive watch and are in a position where they need to protect the value a little because it is an extravagant purchase only justified by the fact that they can get the money back if they need to. My advice to those people would be to spend half as much and enjoy wearing it twice as much, but in principle i completely get where they’re coming from, and why the heck not.


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This sums up my interest in watches perfectly

[HogwldFLTR]

Frankly if something has value and you own it then it's an asset. Simple as that!!!

[sambb]

its an asset. Meaning it can be sold. However, it likely is a depreciating asset after accoutning for storage, insurance, and maintenance... when compared to putting that money in the S&P 500 (or a 60/40 fund) which requires no maintenance, no insurance, and no storage. Of course some appreciate in value. What percentage of watches appreciate in value? for ALL rolex watches, after accounting for maintenance, storage, and insurance, how many of them have gone up in value COMPARED to the S&P 500 over the same time period? I bet some have. Just like some stocks like apple or tesla have. But the majoroty havent?

[TswaneNguni]

Rolex is an asset,not finding one is a liability .