Rolex As An Investment

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Philipp Mayrhofer, last updated on 06/02/2023

While for many watch lovers luxury watches are primarily a personal passion and a fulfilling hobby, for many collectors they are also a profitable investment. When it comes to watch investments, it is hard to avoid the Rolex brand, which has cult status in many parts of the world. In this article, we talk about Rolex models that are a good choice for investment, explain what makes the Rolex watch a desirable investment object, and give tips around the topic of Rolex as a valuable investment.

Which Rolex watches are worthwhile as a profitable investment?

Of course, not every model is ideally suited as an investment with the prospect of rich returns. Therefore, we will first take a closer look at five luxury watches from the Rolex brand, which are particularly interesting as an object for investment.

Rolex Cosmograph Daytona

The Rolex Daytona, whose most famous wearer was racing driver Paul Newman, is one of the best-known and most sought-after Rolex watches of all and has experienced an almost unbelievable increase in value in the past. Unfortunately, this has also led to the fact that very often it was and is tried to counterfeit the Rolex Daytona and bring expensive to the man. With these Rolex watches, it is therefore especially important to have them checked for authenticity in order to protect yourself from a costly fraud.

Anyone who owns a genuine Rolex Daytona of popular reference today has a good chance of being able to sell it for many times what he once spent on it. The sporty watch, which has long appealed not only to fans of racing, is for many people the epitome of an iconic Rolex and is one of the models of the watch brand for which customers accept extremely long waiting lists. This is despite the fact that the Rolex Daytona is said to have initially experienced disappointingly low demand after its release - hard to believe from today's perspective.

Rolex Submariner

A diver's watch whose popularity cannot be surpassed: the Rolex Submariner (Date) is one of the "all-time favorites" of die-hard Rolex fans and, as a profitable investment, anything but an insider tip. It is generally known that an investment in a Submariner has helped investors to attractive profits in the past.

At this point, the Rolex Submariner Date with the reference 116610LV, i.e. the predecessor reference of the newer 126610LV, should be highlighted. The colorful watch is also known by the affectionate nickname "Hulk" due to its bright green bezel and matching dial, and is one of the watches whose appreciation may have surprised scene connoisseurs. We will go into detail about the exact appreciation of the Rolex Submariner (Date) and all the other models presented later in this article.

Rolex GMT-Master II

If you're in the watch world, you can't get past Rolex's GMT-Master II watches. Too often, these have made headlines with their huge popularity and gigantic demand 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 bicolor bezels, which are currently being traded for vast sums of money on the secondary market.

Next to the trendy bicolor models, the older GMT Master II watches, some of which have been discontinued, almost seem a bit staid. One could therefore think that these are rather out of the question for an investment. But the opposite is true: since these less hyped watches are much more affordable to buy, satisfactory returns are even more likely with them.

Rolex Oyster Perpetual

A watch from the comparatively plain and inexpensive Oyster Perpetual collection among the top luxury watches as an investment? You wouldn't necessarily expect that. After all, Oyster Perpetual Rolex watches are not infrequently regarded as rather unspectacular entry-level models. However, the past years have shown that even such a rather inconspicuous watch can give you a nice return.

The Oyster Perpetual with the reference 114300 has experienced the greatest increase in value here. A thematically important addition to this: The positive price development was shown in connection with the discontinuation of production of the model. This is a phenomenon we see time and again in the world of watches. When manufacturers announce the end of a production, it not infrequently leads to a rapid increase in 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 among the interesting objects for investment. In fact, many collectors and connoisseurs of the major watch brands would unhesitatingly rank the Air-King among the least popular Rolex watches of all time. This doesn't necessarily suggest that the Rolex Air-King is a good investment - does it?

It depends on how you look at the current situation. It is rumored that the Air-King will be discontinued in its current version. We remember: The discontinuation of production has already caused quite a few models to increase in value "overnight". For speculators and people who hope for a quick return without shying away from the risk, the Rolex Air-King is therefore perhaps one of the most attractive Rolex models for a promising investment.

Why invest in Rolex?

Whether Rolex Explorer II, Submariner or Rolex Daytona: Rolex timepieces have the reputation of immense value stability and are therefore highly sought after as investments. Below, we take a closer look at the market and discuss the reasons to invest in models from the Swiss watch giant.

Historical increase in value

In order to get into the topic, we first have to take a closer look at the terms and above all at the market price and the list price. When we talk about the list price, we mean the manufacturer's sales price. The list price is therefore the amount of money that the manufacturer charges for the model in question. This is contrasted with the market price, i.e. the price for which the watches change hands on the secondary market.

How the market price relates to the list price depends on several factors - including demand and availability of the watch. "Shopworn" watches are logically often available on the secondary market for well below list price, while models for which the manufacturer sets up long waiting lists trade well above list on the open market.

If one takes a look at the past, one cannot help but notice that Rolex products are rarely offered below list prices compared to watches from other brands. Often the opposite is the case and enormously high market prices are the order of the day.

Price development

If you want to discuss Rolex as an investment in detail, there is no way around looking at the price development of individual models. In this article, we dedicate ourselves to the prices of the watches, which were presented before.

It is no secret that Daytona timepieces have turned out to be extremely lucrative investments. Numerous collectors have been able to sell their watches of this type at a profit, and the amount of return is largely related to the condition of the watch and the reference. As an example, let's take a look at the Daytona Ref. 116520: In the white dial version, this could be purchased in 2010 for around €7,500. About ten years later, prices between €17,000 and €20,000 are being called for the legendary watch. A value development that can be seen.

As already mentioned, the end of production of a model sometimes has a significant effect on its value. This was also the case with the Rolex "Hulk" with ceramic bezel. While this still cost an average of €5,900 in 2011, it recorded a price increase to €13,500 by 2020. After it was announced that the model would no longer be produced, the value of the "Hulk" grew abruptly to around €16,400. Since then, the price of the sought-after model has been rising again at a slower pace, but still with a clear upward trend.

Time to talk about the performance of the GMT-Master II - more precisely, the GMT-Master with the reference 116710LN. This is a discontinued watch that, at the time of production, was overshadowed by its colorful, much more popular "siblings" called "Pepsi," "Coke," and the like. In the meantime, however, this plain stainless steel watch has 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 the reference 114300 experienced a particularly rapid increase in value. Within three quarters of a year - from January 2020 to October 2020 - its market value grew from €5,500 to over €7,200. This development, too, is certainly at least partially related to the announcement of the production stop on the part of Rolex.

Resale value

If you buy a watch as an investment, it is often not a good idea to wear it too often in terms of resale value. After all, condition is a key factor in determining resale value. If you are lucky enough to have a watch from your own collection increase in value significantly, but then have to sell it for far less than its actual model value due to heavy wear, this is more than annoying. Therefore, watches that function as an investment should be treated as carefully as possible, serviced regularly and not necessarily worn in everyday life.

Since many Rolex models are in high demand, investors often have an "easy game" here when reselling. This is especially true if the history of the piece is fully verifiable, the condition is correct and the watch comes in a "full set" with papers and box.

Does every Rolex increase in value?

No, not every single Rolex increases in value. While some models experience immense price increases, the value of others grows only slightly, and still others endure for decades without any significant change in value. However, compared to watches from other major brands, Rolex products have proven to be enormously stable in value. In other words, even though not every Rolex can claim an increasing value, the risk of making a loss is comparatively small when choosing Rolex as an investment.

Tips for Rolex Investments

Finally, we would like to give our readers some tips for an all-around successful investment in Rolex models:

Investing in Stainless Steel Models

Past experience has shown that returns quickly reach a certain level, especially with stainless steel models. One of the reasons: These watches, by list, are usually significantly cheaper than their gold or platinum equivalents. At the same time, the stainless steel models are very popular, which drives up their resale value. So it makes perfect sense to go for stainless steel watches when investing in Rolex timepieces.

Watch and analyze the market

Of course, investing in timepieces always has something to do with luck to a certain extent. However, to ensure that it is not purely a matter of luck, you should keep a close eye on the market and analyze developments. This gives you the chance to recognize trends quickly and to decide to buy or sell a watch at exactly the right moment.

Gathering information from the watch market

Are there rumors about a possible end of production of a certain model? Or is Rolex planning a new edition of a classic? If so, the wise investor needs to know about it. He keeps an eye on the watch market also with regard to novelties and the rumor mill and always stays "up to date".

Where and how is it best to buy Rolex?

The best places to buy a Rolex are renowned watch dealers, auction houses or even the nearest Rolex concessionaire. If you buy there, you do not have to worry about the authenticity of the watch models and can fully enjoy the pleasure of buying a watch. It is different when you buy from private individuals. Then it is even more important to make sure that you are not dealing with fake watches or even stolen goods.

What else should you look out for?

It is also important to know that in Germany you are obliged to pay tax on the profits if you sell the watch within less than one year after purchase. Especially when buying models from abroad, the German VAT plus any customs duties will also be due upon importation. These expenses should be kept in mind before buying a "bargain" from abroad.

Conclusion

If you want to invest in a watch, you should not do so carelessly. Because: Not every timepiece is a good investment. However, there are numerous models from the luxury brand Rolex, which offer themselves as an investment and in the past could prove the greatest value stability and a high appreciation potential. Interested parties are advised to observe the market closely and make comprehensive analyses - then nothing stands in the way of a promising Rolex investment.


About the author

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Philipp Mayrhofer

Hello my name is Philipp. I actually had my first points of contact with luxury watches through YouTube and the many watch reviews that can be seen there. As a result, I was able to acquire extensive watch knowledge.