Luxury watches, especially Rolex, have always been a great investment. These watches not only add weight to your wrist but can be a profitable asset in the long run. People waiting to invest in Rolex watches for a long time can take a sigh of relief as that time is here. Read more in the guide as to why it’s the best time to invest in Rolex watches to diversify your portfolio.
Reasons Why Rolex Watches Are a Good Investment in 2023
Ask a watch dealer about the holiday season of 2021 and they all will answer the same thing; it was busy. Everybody wanted a holiday gift for their loved one and was ready to pay any amount for it. This pandemic-induced frenzy over luxury timepieces peaked in January 2022 when the demand for the top brands, Rolex, Audemars Piguet, and Patek Phillipe, reached a new height.
However, what goes up always comes down and the market has been like this for the past 18 months. Even though a few sellers are seeing a stable condition, it’s not true for all of them. The dust is settling and the prices are reducing due to less demand, making it the perfect time for watch lovers to invest in Rolex watches.
Casual ups and downs in the Rolex watch prices in Dubai are normal, but two specific reasons are making Rolex watches the best investment for 2023.
Unexpected Spikes in Price
Rolex prices spike non-exponentially. Meaning, you can’t expect the usual 3.4% increase on every watch you buy. Some watches can witness a bigger price increase than others in the market. For instance, Oyster Perpetual went from £4,470 in 2021 to £4,660, seeing a 4.2% increase in Rolex prices.
And the Submariner’s price went as up to £6,780 in 2022 from £6,136 in 2021, seeing an overall increase of 10.5% in the watch price. But this does not mean that the prices will always go up; there’s a high chance that the selling price of the Rolex will reduce rather than increase. So, it’s on you to invest in the right model to avoid facing such losses in the future.
Low Supply, High Demand
Another factor making Rolex watches the best investment of the time is their low supply and high demand. For millions of people crying out for this luxury timepiece, Rolex only manufactures 1.01 million watches per year. This does not add up the numbers, leaving many people deprived of having the luxury of adorning these magnificent wristwatches.
This leads buyers to move to the secondary market where they end up paying more than the retail price for the same watch, same model, and same features. Those who buy to resell these luxury timepieces gain huge profits from just one timepiece. Benefit from the low market right now and invest your money in these wristwatches to sell for a bigger profit in the future.
5 Things to Look for When Buying a Pre-Owned Rolex
Scammers are in every business so knowing in and out of Rolex watches will save you from losing your money on the wrong product. Here’s what you should be looking for before purchasing this luxury timepiece.
Model and Reference Number
Know the reference number and model that you’re looking for to not mistake the watch for something else. Rolex introduces different models with some variations, which new buyers often don’t know. Before heading out for the purchase, make sure to do your research and tell the exact reference number and model to the seller to price it properly.
Watch Condition
The condition of the watch is another factor that decides the price of the watch. The better the condition, the more you can sell it. Make sure to thoroughly check everything from scratches to any big defects. However, remember that some vintage defects can actually lead to a price increase rather than a decrease.
Market Demand
Buying any Rolex watch won’t bring profits; you have to look for a wristwatch that has a continuous market demand. For instance, Rolex Day-Date, Submariner, Oyster Perpetual, and a few others are still every watch-lover’s favorite. Invest wisely if you’re purchasing for the sole reason of reselling it in the future.
Box and Papers
A Rolex wristwatch with a box and papers has more resale value than the one without them. It verifies the authenticity of the watch, thus encouraging a buyer to pay even more for it.
Rarity
The rare dial or the watch being adorned by a celebrity, such as David Beckham, Jennifer Aniston, or a leader increases the price of the timepiece. This spikes the price of the Rolex without any hesitation. If you’re getting a rare Rolex timepiece, then buy that first!
Own a Rolex Watch Today and Reap the Profits Tomorrow
Rolex timepieces always turn out to be a great investment. If you’re looking to diversify your portfolio, then there’s no better time than today to buy a luxury timepiece to profit from it in the future. Make sure to check the factors highlighted above before purchasing a Rolex for your collection!