Why Rolex watches might be your best ever investment

The stock market is plummeting, buy-to-lets aren’t as profitable as they once were and everyone’s investment gains from the pandemic have disappeared. The watch market has stayed surprisingly strong throughout

How are watches an investment?

Like any investment, you make money when the demand for something is higher than the supply. High-end luxury watches (Rolex, Patek Philippe, Audemars Piquet, Richard Mille) have seen a surge in demand since the start of the pandemic as the brands cannot and will not match production with demand. To get your hands on the rare precious metal ones at retail you have to be invited to buy one. Waitlists can be years and years for popular sports models, with even entry-level watches now becoming hard to get.

How do I get Invited to buy one?

Well to put it simply, you have to spend money with the brand. If you are a new customer in today’s market you might have to buy models that you don’t like and ones not in demand in order to increase your spending to get access to the more popular models. Building up a good relationship with the sales advisor can also reduce your waiting time. Taking in a bottle of champagne or some chocolates can help get you noticed by your local Rolex boutique.

Which Rolex will make you the most money?

Historically Rolex has always been a good hedge against inflation, there has been a waitlist for the Daytona since the 1970s. They have steadily increased in value over time and you will very rarely lose money on a Rolex bought at retail. Over the last decade, sports watches have seen the biggest returns. Submariners and GMT-masters sell for more than double their retail price, over a 100% return on investment.

Let’s compare inflation to the Rolex submariner

The Rolex Submariner was first introduced in 1957 and had a retail price of $150. The average full time salary was $4713 in that year. Adjusted for inflation that today should mean a retail price of $1,560. The retail price of the cheapest stainless steel Submariner today is $8,770. As stated above, buying one at retail is extremely difficult, the market price of this watch today is between $12,000-$20,000.