What’s the investment potential of buying a Rolex? What should you know?
This post will tackle investing in Rolex watches, particularly:
- Can you just buy a Rolex?
- How to buy a Rolex
- Is it smart to buy a Rolex?
- Investing in Rolex or gold
- Is it cheaper to buy a Rolex overseas?
If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or WhatsApp (+44-7393-450-837).
This includes if you are looking for alternative investments or a second opinion.
Some of the facts might change from the time of writing, and nothing written here is formal advice.
For updated guidance, please contact me.
Buying a Rolex as an investment
Can you just buy a Rolex?
There’s elevated demand for a lot of well-known Rolex models, such as the Daytona.
Demand is usually fueled by the lack of stocks. This implies that you might have to wait on lengthy waiting lists or possibly be unable to buy some models, even if you plan to acquire one from an authorized dealer.
Because of their distribution policies, it can occasionally be difficult to buy directly from such dealers. Some give preference to loyal customers; they might only offer specific models to their existing clientele.
Market prices may exceed official retail prices by a significant margin because of scarcity.
More alternatives may be available on the secondary market if no new model is accessible at retail.
How to buy a Rolex
- Choose your preferred Rolex model.
- Decide where to purchase. Purchasing from an authorized dealer guarantees authenticity and warranty cover.
- Because of reduced taxes or tourist VAT refunds, some nations are known for having lower prices on luxury timepieces. It’s worth to consider buying abroad.
- Make sure the watch has all the necessary paperwork, such as the original box and documentation. This is essential to preserving resale value.
- Consider the cost of maintenance as Rolex watches need to be serviced on a regular basis to preserve their worth and performance.
- Finalize your purchase after conducting your research and sourcing the ideal model from a trustworthy vendor or marketplace.
Is it smart to buy a Rolex?
Due to their propensity for appreciation as time passes, many Rolex models are deemed wise investments.
Because of their stellar reputation, Rolex watches are highly sought-after and desirable, serving as timekeepers and status symbols.
Rolex keeps strict oversight over production, which increases demand and contributes to exclusivity. As mentioned above, one important element that raises the watches’ potential for investment is their scarcity.
Rolex and other high-end timepieces can serve as inflation hedges. Physical assets like watches usually retain or increase their price over time as rates rise across different markets.
You will usually be able to recover your investment or even turn a revenue if you ever decide to trade in your Rolex.
Investing in Rolex or gold
Gold and Rolex watches both present distinctive potential for investment with various advantages and risks.
A Rolex investment could be alluring if you value exquisite workmanship and are searching for a material possession that can also be used as a status symbol. It provides the pleasure of donning an upscale item.
The value of Rolex watches has shown a remarkable ability to increase over time. Because of their limited production and strong demand, there is a profitable resale market where some models can fetch much higher prices vs original retail prices, contributing to this historical appreciation.
Gold might be a better investment option if you’d rather make a more conventional move that offers liquidity and acts as a cushion against economic uncertainty.
Albeit historically seen as a safe asset, its price is subject to fluctuations and is impacted by different economic factors. That makes it a less reliable investment for many.
Because of their high demand, Rolex watches continue to be valuable assets with a higher potential for appreciation than gold.
Is it cheaper to buy a Rolex overseas?
Purchasing a Rolex abroad can be more cost-effective due in large part to the the prospect of receiving tax refunds, especially VAT.
Luxury goods in jurisdictions like Dubai are exempt from VAT and sales tax.
If the watch was bought abroad, be mindful of possible extra expenses like customs fees when returning it home.
Pained by financial indecision? Want to invest with Adam?
Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.
