7% over 10 years

[YYR]

I see many people worried about their watch as an investment, and whether it’s gonna lose or gain value, does anyone think about the rule of investing, that 7% over ten years doubles your money?
A 10k rolex today if invested at 7% a year, would be worth 40k after 20 years.
How many people can say their watch has really given them a rate of return like that?
Now I understand the watch craze, what I don’t understand is do people not think about this aspect?
Many on this forum can afford to spend very large sums on a watch, but many more are spending 10-20k+ as a once in a lifetime purchase and are otherwise living relatively simply, (not Rolex level lifestyles)

So my question to thinking people is, even if you can afford to buy a Rolex today can you afford it 20 years down the line?

[tudorbaja27]

[NavalFlight]

Watches are jewelry, not investments. Buy them because you love them, not because of what they MAY be worth 20 years from now.

[socalwatchcollector]

Originally Posted by NavalFlight

Watches are jewelry, not investments. Buy them because you love them, not because of what they MAY be worth 20 years from now.

+1

[YYR]

Originally Posted by NavalFlight

Watches are jewelry, not investments. Buy them because you love them, not because of what they MAY be worth 20 years from now.

This is not a Rolex question, it applies to any watches or jewelry, if you can afford it then that disqualifies your answer, the question was for people, that have the money for something like a Rolex, or jewelry, but can’t necessarily afford it (having the money for something doesn’t mean you can afford it)

[derekhayden]

Originally Posted by YYR

(having the money for something doesn’t mean you can afford it)

I agree with this statement. I think you would be surprised how many people that wear a Rolex can't really afford what you call the Rolex lifestyle.

[singe89]

I buy watches that I enjoy wearing at the prices I'm comfortable spending for the value I get out of the watch. If I bought a watch purely for investment purposes I would never feel comfortable wearing it so I wouldn't get any enjoyment out of it.

Although I started thinning out the collection because I was able to make $ on them and they weren't watches I was going to keep forever. My purchases have also slowed down because I don't see the value in the watches I like at current price points. Actually have a decent 3 year investment that looks like its going to pay off and wanted to get a grail piece but nothing really interests me enough right now.

[harvey]

Is there any thing you like about Rolex references other than the financial costs?

Yawns...

[DoctorA]

I can now afford a $500 dinner with my wife and 10 years ago couldn’t afford a $50 dinner! Does that mean I should open a restaurant??!!

Wear what you like and CAN AFFORD and forget about the monetary value and appreciation!
I invest my money in the stock market (and lose it there too) but enjoy my watches and never look at them as an investment!!

[YYR]

Originally Posted by DoctorA

I can now afford a $500 dinner with my wife and 10 years ago couldn’t afford a $50 dinner! Does that mean I should open a restaurant??!!

Wear what you like and CAN AFFORD and forget about the monetary value and appreciation!
I invest my money in the stock market (and lose it there too) but enjoy my watches and never look at them as an investment!!

This is exactly the point, how many are buying watches that they can’t afford. (Having the money in the bank doesn’t mean you can afford it) I have the money for Gucci socks but I can’t afford it.

[turboevo2]

Watches should not be considered as an investment. Buy what you love and what you would wear and not because it may go up in value. If your looking for investment invest your money somewhere else.

[Largoshark]

The investment topics are out of control right now. It's been bad for a while now, but I think it's reached new heights

[padi56]

Originally Posted by Largoshark

The investment topics are out of control right now. It's been bad for a while now, but I think it's reached new heights

Have to agree 100% its a shame that Rolex are no longer seen as watches to own and wear now little more than £££$$$$.

[Shaney]

Should ban the threads like this, brutal reading

[tkc324]

A lot of people start these "investment" type of thread are just looking for reassurance on their Rolex purchases.

[Rsdecker971]

I love that my financial advisor is also a TRF member.

[MinMay]

Warren Buffet is laughing at people who think watch is an investment lol.

However Rolex as a company is $$$ because when they said bend over I believe most people, at least the Rolex fanboys, will do so hahaha.

[YYR]

Originally Posted by MinMay

Warren Buffet is laughing at people who think watch is an investment lol.

However Rolex as a company is $$$ because when they said bend over I believe most people will do so hahaha.

He wears a day date lol

[MinMay]

Originally Posted by YYR

He wears a day date lol

Yah but he doesn’t think it as an investment. He still drives a beat up truck too

[derekhayden]

If you are spending $10K - $20K on a watch you better have all of your other financial responsibilities handled.
Who speculates on investing in jewelry

[Waxtactic]

ROI is not something that leaps to my mind. I buy b/c I enjoy wearing them and after I've started to push up the daisies I hope my kids look down at the wrist and remember some good times with their old man.

[rbox]

There are two things you should always remember:

1. A Rolex watch is in no way, shape or form an investment. This is an incredibly expensive hobby and if you don’t have the cash to play you should squirrel away pennies till you can buy one and keep it forever.

2. Rolex prices are going nowhere but up, up, up. Bubbles don’t exist here and you should never expect relief in grey market prices. Price increases are common and will only serve to drive the market higher.




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[Mr Kram]

you must be thinking of the rule of 72. 72 divided by return rate = # of years in which it will take to double your money. the problem is that your rate of return is generally not static, unless it's some very low risk, low rate return. if you could actually 7% annually without risk, that's probably a better investment than 99% of watches out there. with that being said, I echo the above statements that watches shouldn't be considered investments in the first place.

[timedate]

1 $500 dinner with your wife

or 50 happy meals with your wife

its all food and money

[nick c]

Again and again, watches are not investment, but real estate is. LL

[East Bay Rider]

Lots of people with median incomes (your employees?) save for all kinds of "indulgences" and no one raises an eyebrow but if we perceive someone of lesser wealth buying a Rolex everyone freaks out.
Is your Rolex worth more than the neighbor's Harley, bass boat or classic car? Mine isn't.
It's not an investment. It's just another hobby item. Everyone has their own interests. Buy whatever you like and enjoy owning it.

[Justinmg]

Did anyone even read his post or am I missing something? He is talking how watches should not be seen as investments, lot of hate.

[andyxxx]

Most things/items (except basic food and water) are not necessary or needed.
Every time you dine out, book a holiday or purchase a piece of clothing, buy a car etc, etc – all these things are unnecessary and the money could have been otherwise invested.

At least with a Rolex, there is an inherent value with the added benefit of long term enjoyment.

Your question:
“So my question to thinking people is, even if you can afford to buy a Rolex today can you afford it 20 years down the line?”
My answer:
At present I am fortunate enough to be able to purchase Rolex watches but do not do it as an investment. If in 20 I fall on hard times, I can sell my watches for a sum of money that may (or may not) be more than I paid, but all those meals, cars, clothes have been long gone and are now memories.

Life is for living – not just saving for a ‘rainy day’