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Rolex watches – more than an emblem of success.
While most people think of Rolex watches as obvious status symbols, collectors and investors appreciate them for far more than that. They know that the value of a Rolex has historically increased over time, with limited manufacturing runs, discontinued models, and special editions attracting top cash on the secondary market. Just one example would be the value of pre-1965 Rolex watches, which has increased significantly during the past few years.
Why high-end Rolex watches keep their value
Consumer interest plays a crucial role in determining the value of a collectible timepiece, and Rolex watches consistently maintain a strong market demand as the leading luxury watch brand worldwide. Even during a market decline, rare models such as the ‘Daytona’ and ‘Submariner’ will still fetch high prices.
Discontinued versions of these models can be difficult to track down even on the secondary market. However when they do make an appearance, rare watches like the ‘Paul Newman Daytona’ or the discontinued Rolex Milgauss models are likely to generate a higher demand and therefore command higher prices. When determining which Rolex watch may hold its value the best, it is crucial to consider not only the current market perception of a potential purchase but also how the popularity of the model may change in the future.
Market trends
The luxury watch market is influenced by trends and preferences. Rolex timepieces are widely recognised for their timeless elegance and exceptional craftsmanship and it’s well-known that they often increase in value over time. They are highly sought after in the resale market, making them a valuable asset that can make handsome returns for the purchaser. Collectors and investors are attracted to the enduring appeal of these items, especially certain limited edition or vintage models which have a proven track record of significant price appreciation. Staying updated on current market trends and predictions can provide valuable insights to guide your investment decisions.
Rolex’s presence in key markets
Earlier this year, Rolex strengthened its presence in key markets (notably Europe and the US) with the acquisition of Bucherer, one of the world’s largest watch retailers. The highly significant M&A deal through Bucherer’s subsidiary, Tourneau, created waves in the watch industry. Bucherer will continue to operate its more than 100 retail outlets independently while maintaining its name, and Rolex has confirmed that its relationships with other authorised retailers will remain unaffected. This strategic move allows Rolex to gain access to Bucherer’s excellent real estate locations and distribution channels.
While the retail price of Rolexes continues to appreciate at a strong rate on the pre-owned market, Rolex will rely on Bucherer’s expertise to help it expand its brand recognition and identity in the retail sector.
Factors that affect Rolex watch value
The main factors that influence the value of a Rolex over time are its quality, condition, rarity, and popularity. However, the long-term value of a Rolex can be influenced by other factors, such as the accessibility of spare parts and the availability of servicing options. To ensure that your timepiece retains its value, it is important to take steps to prevent damage and ensure that it functions properly. To maximise the future value of your watch, it is advisable to keep any additional items that came with it, such as the original box, instructions, pamphlets, and warranty cards or papers.
Brand reputation and celebrity endorsements
The endorsements of famous people like athletes and actors have done wonders for Rolex’s brand recognition. It has considerably increased their value and signature. The sustained support of brand ambassadors such as Hollywood stars Mark Wahlberg, Will Smith and Jennifer Aniston ensures that these prestigious wristwatches will continue to be highly sought-after pieces, retaining their value in the long term.
A Rolex is inherently attractive due to timeless designs, impeccable craftsmanship, and iconic status in the world of watchmaking. However, investing in a Rolex should not be taken lightly. By conducting thorough market evaluations and staying updated on design trends and industry advances, you increase your potential to obtain serious enjoyment from the long-term benefits of owning a luxury watch. This is true even in the face of market fluctuations, as a well-chosen watch should continue to increase in value over a longer period.
