Rolex as an investment - which one increases in value?

While luxury watches are primarily a personal passion and a fulfilling hobby for many watch enthusiasts, for some collectors they are also a profitable investment. When it comes to watch investments, it's hard to ignore the Rolex brand, which enjoys cult status in many parts of the world. In this article, we discuss Rolex models that are a good choice for investment, explain what makes the Rolex watch a desirable investment, and offer tips on Rolex as an investment.

Which Rolex watches are worthwhile as a profitable investment?

Of course, not every model is ideal as an investment with the prospect of substantial returns. Therefore, we'll first take a closer look at five luxury watches from the Rolex brand that are particularly interesting as investments.

Rolex Cosmograph Daytona

The Rolex Daytona , whose most famous wearer was racing driver Paul Newman, is one of the most famous and sought-after Rolex watches of all time and has experienced incredible increases in value over the past few years. Unfortunately, this has also led to frequent attempts to counterfeit the Rolex Daytona and sell it at high prices. Therefore, it is especially important to have these Rolex watches tested for authenticity to protect yourself from costly fraud.

Anyone who owns a genuine Rolex Daytona of a popular reference today has a good chance of being able to sell it for many times what they originally paid for it. This sporty watch, which appeals to more than just racing fans, is for many people the epitome of an iconic Rolex and is one of the brand's models for which customers are willing to accept extremely long waiting lists. This is despite the fact that the Rolex Daytona initially experienced disappointingly low demand after its release – hard to believe from today's perspective.

Rolex Submariner

A diving watch whose popularity is unsurpassed: The Rolex Submariner (Date) is one of the all-time favorites of die-hard Rolex fans and, as a profitable investment, is anything but an insider tip. It's well known that investing in a Submariner has helped investors achieve attractive returns in the past.

Of particular note here is the Rolex Submariner Date with reference 116610LV, the predecessor of the newer 126610LV. This colorful watch is also affectionately known as the "Hulk" due to its bright green bezel and matching dial, and is one of those watches whose value development may have surprised watch connoisseurs. We'll discuss the exact value increase of the Rolex Submariner (Date) and all the other models presented in more detail later in this article.

Rolex GMT-Master II

Anyone in the world of watches can't ignore Rolex's GMT-Master II watches. Their immense popularity and massive demand have often made headlines in recent years. At the top of the popularity scale are the Rolex GMT Master II "Pepsi" and Rolex GMT Master II "Batman" models with a two-tone bezel, which are currently trading for huge sums on the secondary market.

Next to the trendy bicolor models, the older, partially discontinued GMT-Master II watches seem almost a bit staid. One might therefore think that they aren't really worth investing in. But the opposite is true: Since these less hyped watches are offered at significantly lower prices, they're even more likely to yield satisfactory returns.

Rolex Oyster Perpetual

A watch from the comparatively simple and affordable Oyster Perpetual collection among the top luxury watches might be considered an investment? It's not something you'd necessarily expect. After all, Oyster Perpetual Rolex watches are often viewed as rather unspectacular entry-level models. However, recent years have shown that even such a rather unassuming watch can yield a nice return.

The Oyster Perpetual with reference 114300 experienced the greatest increase in value. An important addition to this: The positive price development occurred in conjunction with the discontinuation of production of this model. This is a phenomenon we observe again and again in the world of watches. When manufacturers announce the end of production, it often leads to a rapidly increasing demand for these very models, which in turn results in higher prices.

Rolex Air King

With the Rolex Air-King, an absolute "underdog" has made it into the list of interesting investment objects. In fact, many collectors and connoisseurs of major watch brands would unhesitatingly rank the Air-King among the most unpopular Rolex watches of all time. That doesn't necessarily suggest that the Rolex Air-King is a viable investment, does it?

It depends on how you view the current situation. There are rumors that the Air-King will be discontinued in its current form. Remember: Discontinuation of production has already caused several models to increase in value overnight. For speculators and people hoping for a quick return without fear of risk, the Rolex Air-King is perhaps one of the most attractive Rolex models for a promising investment.

Why invest in Rolex?

Whether it's the Rolex Explorer II, Submariner, or Rolex Daytona, Rolex timepieces have a reputation for maintaining their value, making them highly sought-after investments. Below, we'll take a closer look at the market and discuss the reasons for investing in models from the Swiss watch giant.

Historical increase in value

To get into the topic, we first need to take a closer look at the terminology, especially the market price and the list price. The list price refers to the manufacturer's selling price. The list price is the amount of money the manufacturer charges for the respective model. This contrasts with the market price, which is the price for which the watches change hands on the secondary market.

The relationship between the market price and the list price depends on several factors, including demand and the availability of the watch. "Slow sellers" are naturally often available on the secondary market for significantly below list price, while models for which the manufacturer has long waiting lists trade well above list price on the open market.

Looking back at history, one cannot help but notice that Rolex products are rarely offered below list prices compared to watches from other brands. Often, the opposite is true, with extremely high market prices becoming the norm.

Price development

If you want to comprehensively discuss Rolex as an investment, there's no way around looking at the price development of individual models. In this article, we'll focus on the prices of the watches previously presented.

It's no secret that Daytona timepieces have proven to be extremely lucrative investments. Numerous collectors have been able to sell their watches of this type at a profit, with the level of return largely dependent on the condition of the watch and the reference. Let's take the Daytona Ref. 116520 as an example: In 2010, the white-dial version could be purchased for around €7,500. Roughly ten years later, prices between €17,000 and €20,000 are being asked for this legendary watch. A remarkable performance.

As already mentioned, the end of production of a model can sometimes have a significant impact on its value. This was also the case with the Rolex "Hulk" with a ceramic bezel. While it cost an average of €5,900 in 2011, it had risen to €13,500 by 2020. After the announcement that the model would no longer be produced, the value of the "Hulk" suddenly rose to approximately €16,400. Since then, the price of this sought-after model has slowed again, but continues to show a clear upward trend.

Time to talk about the value development of the GMT-Master II—more specifically, the GMT-Master with reference 116710LN. This is a discontinued watch that, during its production period, was overshadowed by its colorful, much more popular "siblings" like "Pepsi," "Coke," and the like. However, this simple stainless steel watch has since become something of an insider tip: Between 2010 and 2020, its value rose from around €4,500 to just under €11,000.

The Oyster Perpetual with reference 114300 experienced a particularly rapid increase in value. Within nine months – from January 2020 to October 2020 – its market value grew from €5,500 to over €7,200. This development is certainly also partly related to Rolex's announcement of the production stop.

Resale value

If you purchase a watch as an investment, it's often not a good idea to wear it too often, considering its resale value. Condition is a key factor in determining resale value. If you're lucky enough to have a watch from your collection experience a significant increase in value, but then have to sell it for far less than its original value due to heavy signs of wear, it's more than a little frustrating. Therefore, watches that serve as an investment should be treated with the utmost care, serviced regularly, and not necessarily worn every day.

Since many Rolex models are in high demand, investors often have an easy time reselling them. This is especially true if the piece's history is fully verifiable, the condition is satisfactory, and the watch is presented in a full set with papers and box.

Does every Rolex increase in value?

No, not every Rolex increases in value. While some models experience a huge price increase, others increase only slightly, and still others last for decades without significantly changing their value. However, compared to watches from other major brands, Rolex products have proven to retain their value enormously. This means that even if not every Rolex watch can boast an increasing value, the risk of incurring a loss is comparatively small if you choose Rolex as an investment.

Tips for Rolex Investments

Finally, we would like to give our readers some tips for a successful investment in Rolex models:

Investing in stainless steel models

History has shown that returns quickly reach a certain level, especially for stainless steel models. One reason for this is that these watches are usually significantly cheaper than their gold or platinum equivalents. At the same time, stainless steel models are very popular, which drives up their resale value. Therefore, it makes perfect sense to invest in stainless steel watches when investing in Rolex timepieces.

Observe and analyze the market

Of course, investing in timepieces always involves luck to a certain extent. However, to ensure it's not a matter of pure luck, you should closely monitor the market and analyze developments. This gives you the chance to quickly identify trends and decide to buy or sell a watch at exactly the right moment.

Collect information from the watch market

Are there rumors about a possible end of production for a particular model? Or is Rolex planning a reissue of a classic? If so, then the wise investor needs to know about it. They keep an eye on the watch market, both for new releases and rumors, and always stay up to date.

Where and how is it best to buy a Rolex?

The best places to purchase a Rolex are reputable watch dealers, auction houses, or even your nearest Rolex dealer. When you buy from them, you don't have to worry about the authenticity of the watch models and can fully enjoy the joy of buying a watch. It's different when you buy from private individuals. In that case, it's even more important to ensure that you're not dealing with counterfeit or even stolen watches.

What else should you pay attention to?

It's also important to note that in Germany, you're required to pay taxes on the profits if you resell the watch within less than one year of purchase. Especially when purchasing models from abroad, German VAT plus any applicable customs duties are also due upon import. So, keep these costs in mind before snapping up a "bargain" from abroad.

Conclusion

If you want to invest in a watch, you shouldn't do so without careful consideration. Not every timepiece is a good investment. However, the luxury brand Rolex offers numerous models that are suitable as valuable investments and have demonstrated exceptional value stability and high appreciation potential in the past. Interested parties are therefore advised to closely monitor the market and conduct comprehensive analyses – then nothing stands in the way of a promising Rolex investment.