Bob’s Watches, a leading reseller of Rolex watches, has revealed data that indicated the growing value of Rolex luxury watches as a form of long-term investment asset in the last 10 years. In fact, it noted that the brand’s watches has even outperformed traditional investment classes, namely gold, real estate, and stocks (based on the Dow Jones Industrial Average).

In its report, the reseller shared that when it came to a flat-out percentage increase, Rolex watches significantly outperformed both gold and real estate. “This is based on inflation-adjusted values for the price of gold provided by macrotrends.net and median sales price data for houses sold in the United States from the Federal Reserve Economic Data (FRED) database,” it explained.

Additionally, the report noted that while the stock market had continued to offer similar overall returns throughout the last decade, Rolex watches showed a noticeably higher appreciation percentage between 2017 to 2021. Not only that, this trend is expected to continue well into 2022.

The report by Bob’s Watches further highlighted the 10-year appreciation observed in the average price of pre-owned Rolex watches as “incredibly impressive”. “The average price of a used Rolex watch has gone from less than $5,000 in 2011 to more than $13,000 by the end of 2021. This increase is certainly noteworthy by all standards, but the amount that Rolex prices have gone up since the beginning of the pandemic (2020) is nearly equal to the total price increase that can be observed during the entire previous five-year period, and this trend shows no sign of slowing down as we enter the new year,” the reseller noted.

Aside from that, the report also named the Rolex Cosmograph Daytona as the highest appreciating Rolex model, with its value tripling over the past decade. According to the data collected, the average pre-owned price of a Cosmograph Daytona settled at more than $30,000 in 2021. Other models – such as the Air-King and the Date – on the other hand, showed a more modest appreciation.

Meanwhile, the chief executive officer of Bob’s Watches, Paul Altieri emphasised that Rolex watches have always been good investment over the years – but the last five years have been exceptional. He also remarked on the increasing global demand. “People have waited a year or two for their name to come up on the buyers’ list – they’re not going to flip it,” he said.

Enthusiasts of such high-end brands have long believed in the potential of collectible items as an alternative form of investment asset, ranging from watches and handbags, to art, classic cars, as well as rare alcohol and books. The interest in such products are primarily driven by their rarity, and investing in these items often involve a careful process that requires authenticity checks.

Sometimes also known as “passion investment””, the market has boomed over the past few years. In 2019, for instance, designer handbags were named as the number one collectible investment, with some brands experiencing a valuation spike of an average of 83% in the last ten years. Meanwhile, wine emerged as a winner in 2020.

(Sources: Bob’s Watches, Business Insider)

• TAGS:
• Alternative Investment Assets
• Bob's Watch
• Longform
• Luxury Watches
• Passion Investment
• Paul Altieri
• Rolex
• Rolex Air-King
• Rolex Cosmograph Daytona
• Rolex Date