Thought on buying Rolex as "investment"

[gerobak]

When you are considering to buy your next Rolex (that is not for "investment"), would you still consider their future potential value?

For me, a struggling middle class, I couldn't stomach myself buying a watch that costs ten to fifty grand, and seeing it depreciates. It's not that I am planning to resell it in the future, but just for the sake of the discipline of spending money. It's like buying a house that I would still need to carefully decide what location and which house that will hold/appreciate its value in the future. It's a totally different mindset when buying cars where we know it will depreciate anyway.

I got that many of you would buy the watch just because you love it, and you wouldn't put a tiny thought whether it will hold its value 15, 30, and so on years down the road.

[beshannon]

Originally Posted by gerobak

For me, a struggling middle class, I couldn't stomach myself buying a watch that cost ten to fifty grand

Then don't, simple.

If you really are struggling this should not even be a question as to whether to buy jewelry based on possible future value.

[kieselguhr]

Sounds like gambling. I don’t think it’s a good idea to gamble if you’re already struggling.

Also, to command maximal value the watch needs to essentially be unworn. So what’s the point?

In which case, if you pump S&P 500 over the same projected 10, 15, 30 years, your ROI will be significantly higher.

I am not wealthy by any means. I buy what I can afford and that is determined well in advance based on my finances. Don’t people do bookkeeping anymore?

Anyway IBTL

[shwingus]

Your mindset is what is currently plaguing the brand and the flipper market at the moment. First off, watches aren't an asset class. Get this out of your head...You want an investment? Then go buy stocks, bonds, property etc. Before you come back with: "well those are down the moment", well yea thats when you buy if you have the means and can endure the lows for the eventual high (always cyclical).

Please don't compare watches to houses...Your comparison with cars is infinitely more accurate as the vast majority of cars depreciate unless its something limited or is collectible. Just like watches where the vast majority depreciate the moment it goes on your wrist, except for a select few brands/models.

You should buy a watch and think of the money as automatically gone, if that financial burden is too much for you then you shouldn't be looking at watches at all. They are something to be enjoyed and worn not speculated on by people over-extending like yourself.

[Mr Ben]

I’d think of it in the mindset of buying a car. Don’t spend money you might otherwise need. It’ll depreciate for a while, it’ll hold its value better if you don’t use it and you’ll get ripped off if you try and trade it in… it may or may not be desirable and valuable in 20 years if it’s rare and/ or sought after. Yep - more like a car than a house.

[enjoythemusic]

Yes, an investment into happiness when wearing it.

[gerobak]

Hmmm, so far the replies still indicate that I buy the watches primarily for investment. Of course, I have invested in other areas such as real estates and stocks. Note that I do not buy these watches to sell in the future.

I am trying to say, even for luxury or "fun" expenses, I still need to think of the future values.

[Sivito]

I don’t view it as an investment but it’s security if push came to shove then you can always trade regardless if you’ve lost or made.

Ultimately buy to enjoy the timepiece for what it is


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[kieselguhr]

Originally Posted by gerobak

Hmmm, so far the replies still indicate that I buy the watches primarily for investment. Of course, I have invested in other areas such as real estates and stocks. Note that I do not buy these watches to sell in the future.

I am trying to say, even for luxury or "fun" expenses, I still need to think of the future values.

so why ask about thoughts on buying it as an investment if you do not?

The general consensus is going to be a resounding no unless your occupation is watch reseller. Whom realistically are the only ones who consistently generate profits based on margins regardless of market trend

[gerobak]

Originally Posted by kieselguhr

so why ask about thoughts on buying it as an investment if you do not?

The general consensus is going to be a resounding no unless your occupation is watch reseller. Whom realistically are the only ones who consistently generate profits based on margins regardless of market trend

I can see the misunderstanding with the title of my post. I put a double quote and tried to explain it on my first post. Apologize for the confusion.

[Calatrava r]

The term "struggle" and luxury jewelry purchasing really do not mix well. The cost of a watch should be money you can easy part with and will not impact your short term or long-term financial needs and goals. Watches could become passe in the future and most, if not all, of the regularly produced watches from all brands may lose a lot of value from MSRP. The only guaranteed return is a lifetime of joy wearing the watch. Less is more with watches.

[Watchsama]

No one is forcing you to buy an expensive watch... Buy a G-Shock instead. No sleepless nights over the vAluE

[gerobak]

Originally Posted by Watchsama

No one is forcing you to buy an expensive watch... Buy a G-Shock instead. No sleepless nights over the vAluE

I have few G-Shocks :)

[JSolution]

I think it’s a reasonable question.

Especially if you plan to trade etc in the future. I have bought watches sold watches and part exchanged watches. I have had examples of part exchange watches where they were not even interested in considering to take it towards a trade.

[Harry-57]

The house analogy doesn't work for me. We have lived in the same house for 30 years. It went down in value considerably in the five years after we bought it. It didn't matter. We bought it because we loved the house, its location, and wanted to make it our home. What it was worth did not matter, although with property you're never going to lose in the long term as a rule of thumb.

Any car I buy is treated as a total loss minus whatever its residual value is at any given time, which is only of significant interest when I want to sell it. I trend to run them over about a 10 year period (unless it's a dog). Same with watches. I buy what's in my budget range, wear and enjoy the hell out of it, keep it insured and don't think any more about it. It's not a financial investment.

Originally Posted by gerobak

I have few G-Shocks :)

Great watches. Although in a lower price band, Rolex is analogous. Rolex are mass produced watches, all be it very nice and occasionally very clever ones. If investment potential is driving you more than love, you are barking up the wrong tree.

[Driver8]

Watches (as nice as they are) are nothing more than frivolous trinkets that absolutely no-one NEEDS these days. Therefore IMO they shouldn’t cause you a single second of lost sleep, and if being able to justify buying one is dependent on it not losing value, then buying one simply isn’t worth it.

For me, every single watch I’ve ever bought has been a sunk cost as far as I’m concerned. It’s money spent on something I enjoy, with absolutely no thought, consideration or expectation of ever getting any of it back again. Like a holiday or a decent meal - you pay the money with no hope or care for ever seeing any of it back. That’s how I’ve always approached all of my hobbies.

Also, it’s worth remembering that horology is bigger than just Rolex and with 99% of other brands, you know that a watch is instantly going to lose 30 or 40% when you leave the shop. Does that knowledge stop people buying other brands? No - you just need that sunk cost mindset and you’re good to go. It’s only really Rolex (and PP) that has this “investment consideration” angle for so many.

[zengineer]

Everyone here has a heart as pure as freshly driven snow when it comes to wristwatches. We feel dirty even thinking about cost or value. If a watch sings to us we float into the retailer on a cloud of altruistic horological love and feel fortunate to be their temporary guardians.

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[Chewbacca]

If you’re “struggling middle class”, a Rolex will make you feel better about the struggle and show others you’re beating the struggle. Plus, they’re a solid investment. I’m up $1,715,173.34 since 1955

[gerobak]

Originally Posted by Chewbacca

If you’re “struggling middle class”, a Rolex will make you feel better about the struggle and show others you’re beating the struggle. Plus, they’re a solid investment. I’m up $1,715,173.34 since 1955

Thank you sir for understanding my "struggle" and heart (if you are not sarcastic lol). I am not struggling to be alive, but struggling to beat this middle class bubble.

[rushca01]

I buy watches to wear, case in point, I just bought a 126710 BLRO from a grey dealer and I’ve been wearing it non stop for 2 weeks. I know prices are continuing to slide but I got tired of waiting. I also purchased a 16610LV earlier this year and prices have slide on that reference too. Does it suck, yes. I don’t view these as investments because they don’t generate any cash flow but I want my kids to someday wear them. But it is nice knowing if I needed the cash I can always sell.

[bluestreak]

I personally don’t have a problem with people considering residual value of their watches. But you’re not going to find many people who agree here.

You’ll get a bunch of people who say they care nothing about the value of their watches. Because they never change their mind about a watch, assume every watch they buy is a fully suck cost, etc.

Most of these folks are likely not being fully honest. If you buy a 5 or six figure anything and don’t care at all how much of its value it retains, I’d argue that that is not really making financially sound decisions.

The inability to get these watches have addled people’s brains and this is the TRF version of virtue signaling (I hate using that term, but it fits here).

[Tim Plains]

I don't think about resale when I buy clothing, furniture, appliances, cars, and watches are no different. Couldn't care less if my Rolex was worthless when I walked out of the store with it, I would have still bought it, and will buy a second if the AD situation eases up. If you want one as an investment, or merely a place to park money, I say don't do it.

[Chewbacca]

Originally Posted by gerobak

Thank you sir for understanding my "struggle" and heart (if you are not sarcastic lol). I am not struggling to be alive, but struggling to beat this middle class bubble.

We will overcome!

[enjoythemusic]

Originally Posted by chewbacca

a rolex will make you feel better about the struggle

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[messikens]

Originally Posted by gerobak

When you are considering to buy your next Rolex (that is not for "investment"), would you still consider their future potential value?

For me, a struggling middle class, I couldn't stomach myself buying a watch that costs ten to fifty grand, and seeing it depreciates. It's not that I am planning to resell it in the future, but just for the sake of the discipline of spending money. It's like buying a house that I would still need to carefully decide what location and which house that will hold/appreciate its value in the future. It's a totally different mindset when buying cars where we know it will depreciate anyway.

I got that many of you would buy the watch just because you love it, and you wouldn't put a tiny thought whether it will hold its value 15, 30, and so on years down the road.

Beanie babies were also good "investments" for a while. Until they weren't.

If you're struggling middle class really, then there's about 1000 better ways to spend or invest money. Watches rank slightly above beanies, tulips, stamp collections and crypto...


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[waxy88]

The car analogy is the perfect one for watches. And I think I understand where you are coming from. Does the future value of a car inform my choice? Yes it does, I’d never buy a French car, because they depreciate horrendously, whereas German cars depreciate less.
Kind of the same with watches, I wouldn’t buy a piece that would shed a ton of its value. Even if I wasn’t buying to sell I the future or even if I really liked the piece,I wouldn’t buy it, because it would appear I was massively over-paying for its true market value

[dxhan]

I do care about my watch's value cause it's always hard to stomach a massive hit on any purchase. One of the main reasons that I love Rolex is the fact that even before this crazy market, I was able to retain most of the watch's value and how liquid it is to sell if I needed cash or an upgrade.

However not to be disrespectful but this sentence alone shows that your money is better used elsewhere: For me, a struggling middle class, I couldn't stomach myself buying a watch that costs ten to fifty grand, and seeing it depreciates. It's not that I am planning to resell it in the future, but just for the sake of the discipline of spending money. It's like buying a house that I would still need to carefully decide what location and which house that will hold/appreciate its value in the future. It's a totally different mindset when buying cars where we know it will depreciate anyway.

If you are truly struggling then buying a 10k watch is the worst thing you can do to yourself. I've spent or invested a lot into luxury watches, more than I should be honest but if tomorrow the market turns sour and Rolex lost its appeal or value. I'd still be okay, I mean it would suck but I'd still be happy wearing my watches and not lose sleep. Are you in a place to do that? If not maybe park your money elsewhere.

[AF_Rob]

I got my first Rolex because I (REALLY) wanted that model and the price would not alter my life. Retained value is nice but wasn't a factor.

If I was lukewarm on a model and it was available, retained value may push me over the threshold on an impulse purchase.

If one is making financial sacrifices to make the purchase and using retained value to make them feel better about it, they should consider a piece more attainable, or keep saving.

[Blanch]

Only spend recreational money when it's disposable, like going on vacation or buying yourself something that isn't needed but will make you happy: going to a concert, jewelry, etc... Never spend money you need on something you don't need.

[Wcdhtwn]

I think anyone who claims they don't at all, after the Rolex market appreciation we've seen in the past 5 years, isn't being honest. Maybe they end up with a different brand, likely because of availability, but who didn't somewhat reluctantly choose a Speedy available now over a Daytona available in 3 years? Now I will say buying a Rolex solely because you expect to make money on it is foolish.