Using Rolex as Investments --- Why not?

[EEpro]

Originally Posted by Pw92676

You are not up (or down) any percent until you sell it. But when you sell it you are down a great watch.

Bravo

[csaltphoto]

Originally Posted by Pw92676

You are not up (or down) any percent until you sell it. But when you sell it you are down a great watch.

Well yeah! Never going to sell it. But if I had bought 100...

[Pw92676]

Originally Posted by EEpro

Bravo

Originally Posted by csaltphoto

Well yeah! Never going to sell it. But if I had bought 100...

Without a plan to sell, investment talk is moot.
Sell 1 or 2 and one is not an investor, just playing around for some spare change
Sell 100 and one is not an investor but at that point a watch dealer.

[hambone1983]

Originally Posted by Pw92676

You are not up (or down) any percent until you sell it. But when you sell it you are down a great watch.

that's like saying you don't have cancer until a doctor gives you a diagnosis

[Marcjvr]

Originally Posted by hambone1983

that's like saying you don't have cancer until a doctor gives you a diagnosis

Nothing like it actually. Ridiculous comparison

[gleiden]

If I wanted to make money, I wouldn't choose watches as that vehicle.

The fact that all the watches I bought at MSRP have gone up in value is a pleasant side-effect, but not the objective.

[dnd2984]

you can but better vehicles out there for a 10 year timeline, rule of 72....

[GT3 Mike]

Watches as an investment, especially a mass produced timepiece like Rolex is a bad idea. If you want to invest in horology, look at Pateks.

Honestly, I hope the Rolex market tanks and my watches become worthless. I didn't buy Rolex for value retention or profits and like others have said, the fake hype, FOMO market has absolutely destroyed the hobby.

[sgwatchguy]

Originally Posted by GT3 Mike

Watches as an investment, especially a mass produced timepiece like Rolex is a bad idea. If you want to invest in horology, look at Pateks.

Honestly, I hope the Rolex market tanks and my watches become worthless. I didn't buy Rolex for value retention or profits and like others have said, the fake hype, FOMO market has absolutely destroyed the hobby.

You may be on the wrong forum mate. Also maybe less Instagram so the hype isn’t messing with ya. If nothing works, maybe donate your watches to the less fortunate. They don’t seem be bringing you much happiness

[Fleetlord]

Honestly the topic is irritating to the WIS, who are also professional and advanced amateur investors, that populate watch forums as the dollar amounts and subsequent returns are relatively insignificant, so it’s not worth bothering with...and becomes an annoyance as it makes obtaining watches harder..etc.

However, the monied general public sees things differently. Watches are a bargain compared to art and collector cars..etc. Since cash is trash and what else are they going to do with their money? Watches keep going up to the moon! Just buy them..

[JR16]

Originally Posted by Fleetlord

Honestly the topic is irritating to the WIS, who are also professional and advanced amateur investors, that populate watch forums as the dollar amounts and subsequent returns are relatively insignificant, so it’s not worth bothering with...and becomes an annoyance as it makes obtaining watches harder..etc.

However, the monied general public sees things differently. Watches are a bargain compared to art and collector cars..etc. Since cash is trash and what else are they going to do with their money? Watches keep going up to the moon! Just buy them..

“To the moon!.”...


Sent from my iPhone using Tapatalk Pro

[sgwatchguy]

Originally Posted by Fleetlord

Honestly the topic is irritating to the WIS, who are also professional and advanced amateur investors, that populate watch forums as the dollar amounts and subsequent returns are relatively insignificant, so it’s not worth bothering with...and becomes an annoyance as it makes obtaining watches harder..etc.

However, the monied general public sees things differently. Watches are a bargain compared to art and collector cars..etc. Since cash is trash and what else are they going to do with their money? Watches keep going up to the moon! Just buy them..

Well said.

Someone sold a piece of computer art for what, $69m last week. Did they buy it for the art or as an investment? Perhaps both.

[Eyenigma]

Anything can be an investment if:

1. You're actually willing to sell it.
2. And you can find someone who will pay more for said asset in the future, than you did.

Profit is only realized, when you sell it. Doesn't matter how much you were up at the Casino. How much did you LEAVE with? Same applies to watches. Think of all the Panerai investors who WERE up big on their safe full of pieces? Not suggesting Rolex is in the same league of Panerai. But goes without saying every brand has their moment that waxes and wanes.

[poliwog]

Originally Posted by Eyenigma

Anything can be an investment if:

1. You're actually willing to sell it.
2. And you can find someone who will pay more for said asset in the future, than you did.

Profit is only realized, when you sell it. Doesn't matter how much you were up at the Casino. How much did you LEAVE with? Same applies to watches. Think of all the Panerai investors who WERE up big on their safe full of pieces? Not suggesting Rolex is in the same league of Panerai. But goes without saying every brand has their moment that waxes and wanes.

I like the casino anology.

Profit on your watch or whatever else is only realised when you let go of it.

[Robert Bruce]

Remember the tulip crash of 1637.

[Gab27]

It's not how I choose to invest my money (nor would I want to deal with the stress and risk of selling watches or the potential financial consequences of [another] crash), but more power to you if it is your thing. Did such use of watches as investments contribute to the amount I ultimately had to pay for my Sub? Maybe, but that's how things work. Even if the market does crash, I'm still going to enjoy my Sub!

[grimps]

It's nice to be able to own something that increases in value that you can wear and enjoy everyday.
I own 16 Rolex and a few other watches that I have all been bought by myself over the last 11 years.
They're just watches to me with no sentimental value so If I ever need the money I'd have no problems selling them, if I don't ever need the money then some of my family can sell them when I finally fall off my perch

[Kevin of Larchmont]

As the child of depression era parents I carry the lessons of the boom and bust cycles they endured throughout their lives. As a child I didn’t always get to eat or wear what I wanted but I never wanted for either. In my own adult life I have learned that circumstances can be uncertain and all my life I have tended to consider an exit strategy whenever I make a major purchase. While not an investment per se Rolex provides me with a stable and viable exit strategy. I don’t believe I’ll ever need it but it’s hard to shake those lessons learned, even the ones that are inherited.

[jimcarver]

I personally think it just takes the fun out of the hobby.

With hindsight many things are a good investment, I bought a 116710 in early 2015, its now worth considerably more....did I know that when I bought it? No. Would I see the same sort of increase if I were to buy now? Also no. (well its discontinued but take a Sub as a similar comparison).

For me it just creates that cycle where watches are so hard to get because people "are buying a watch to pass down to my son" and that kind of thing, without actually knowing if their son will like watches. Buy a watch if you want a watch, don't if you don't. It's a simple as that for me.

[Monty22]

Originally Posted by jimcarver

I personally think it just takes the fun out of the hobby.

With hindsight many things are a good investment, I bought a 116710 in early 2015, its now worth considerably more....did I know that when I bought it? No. Would I see the same sort of increase if I were to buy now? Also no. (well its discontinued but take a Sub as a similar comparison).

For me it just creates that cycle where watches are so hard to get because people "are buying a watch to pass down to my son" and that kind of thing, without actually knowing if their son will like watches. Buy a watch if you want a watch, don't if you don't. It's a simple as that for me.

+1. I have always believed that watches going up in value is a perk. All other talk about heirlooms, etc is just about trying to rationalize an emotional, unnecessary purchase. Not pointing fingers, as I am guilty as well. I personally prefer the nonsensical love for the hobby versus the investment talk


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[Tensai]

It is a free world (mostly). You can buy and sell whatever you want for a profit if you are smart...watches, cars, real estate, tulips, art, baseball cards, etc.

The Wall Street fanboys who claim that BTC, stocks and bonds are the best and only investments. Poppycock.

[SDGT3]

From a purely investment standpoint: A Rolex pays no monetary dividends so there is no compounding nor any tax advantages. There are also costs to owning a Rolex such as insurance and servicing.

If you were to take X amount from your investment portfolio and buy a Rolex instead of an ETF or other traditional investment, you have the relative security knowing that it's not going to go down in price and it may experience an increase in value above operating costs. The plus is that you get to enjoy and wear an appreciating asset everyday if you wish and you can't say that about very many things in life.

[Sandpit]

I would think that if the likes of the Hulk, new Kermit and the BLNR models didn't have that "investment" factor - they would not be as popular as they are now.

Personally, I only buy a watch that I can see myself wearing in 20 to 30 years time. I consider that money gone forever as I never plan to cash it in. I buy for the enjoyment and for the love of the piece.

However, what I would say is that it makes the decision a lot easier when you can buy knowing that the value will be mostly retained. There's always that "what if" scenario. So i do get it.

What I don't agree with however is those that are building the oh so boring collections of the hyped pieces and are treating them like an investment portfolio. Obviously everyone is free to do as they wish, but I feel a watch should really be bought for the enjoyment - and not because it might go up in value.

[Toivonen]

Originally Posted by samgobigs

I've heard many posts along the lines 'don't use Rolex as investment' but let me play the devil's advocate and ask why not? Why is this a bad idea?

For example, if you really believe a particular model, say a Daytona as an example, will increase in value over the next decade or so, and if you have the funds, why not buy this watch and store it in a safe, for the sole purpose of investment?

I buy stocks in companies I never buy a product from, and real estate in places I would don't live in, so I'm ok with the idea of buying a watch and not using it.

Also, since there's no way or investing in Rolex as a company (it's privately owned), investing in their timepieces would be the closest way.

There's also minimal cost in terms or maintenance or servicing if I just leave the watch in a safety deposit box. There's no roof to repair and annoying tenant to deal with unlike owning a piece of real estate.

Their watches are almost guaranteed to increase in value each year due to their predicted annual piece increase, so this also works in favour of investments. And as brand with expert knowledge in marketing and supply and demand, there's a good chance that their models would always be in demand many years from now.

I have plenty of investments elsewhere and thought this would be a nice way of diversifying away from other investment options.

That kind of approach has ruined this world completely, imho.

Now, if I can afford and I like a Rolex x as a pure watch enthusiast, I go into a Rolex AD, ask it to be buyed and... receive smiles and laughs.

There's NOTHING wrong in buying something in an x momento and finding that, after y time, it's value not only hasn't decreased but it has been grown. But living this world only by a speculative approach is something to point the finger against, imho

[Macnavara]

To me the fact that my watches are worth more now is a bonus but i was buying Rolex when they were worth less as you left the Ad.
Ive also made plenty of losses on Rolex and i didnt care as i loved them.....i guess im in the minority now that still thinks of them as a watch and not $ or crass status symbols

[padi56]

Originally Posted by Macnavara

To me the fact that my watches are worth more now is a bonus but i was buying Rolex when they were worth less as you left the Ad.
Ive also made plenty of losses on Rolex and i didnt care as i loved them.....i guess im in the minority now that still thinks of them as a watch and not $ or crass status symbols

Have to agree this is what owning a Rolex watch should be about it's not like most of today's investment this or that and mostly ££$$$££. Now my Father was fascinated with watches and I can thank him I suppose for the watch bug.Now I can always remember when I was quite young, my Dad saying one day he will have a Rolex.Now myself at the time had no idea what a Rolex watch was.Dad saved hard for many years and had about 2- 3 other jobs eventually in 1980 he bought a Daytona 6263 for around £750 but not 100% sure of price,but originally he wanted a sub, but Daytona was cheaper plus AD gave him a discount.At this time this watch was quite a bit cheaper, than the other sports range,but still a lot of money even back then.He was very proud of his Rolex watch,and it was only worn on special occasions.Dad was always a hard worker but suffered with ill health for most of his short life.Dad had 14 brothers and two sisters,a very large and close nit family.Now this 6263 is not a watch or a money object to me it's part of my Dad, thought I would share a part of his life with you all.


My Father was a miner for almost 40 years,but alas he died at the age of nearly 56 years.He suffered with his heart and chest after WW11 he lied about his age he was just 17 and although a coal collier in then a reserved occupation.He joined the navy and was on aircraft carriers HMS Furious and HMS Glorious.Now the Glorious was attacked by the German battle-cruisers, Scharnhorst and Gneisenau and a direct hit,caused her to sink.Out of a complement of of around 1500 men there were only 39 recorded survivors.My Father was reported missing,presumed killed in action.But was picked up by a Norwegian fishing boat, after being in the that cold sea for almost 32 hours.And without a shadow of a doubt that experience, and 35 odd years in the mines helped shorten his life.My Dad was a very strict but fair, private man, and did not complain about his illnesses.When he died, it was just like I lost my best friend,and now myself in my late 70s, I still think about and miss him.And in the 6263 a small part of him lives on,this watch is very special to me,and would never part with it at any price.

[Miker86]

Originally Posted by padi56

Have to agree this is what owning a Rolex watch should be about it's not like most of today's investment this or that and mostly ££$$$££. Now my Father was fascinated with watches and I can thank him I suppose for the watch bug.Now I can always remember when I was quite young, my Dad saying one day he will have a Rolex.Now myself at the time had no idea what a Rolex watch was.Dad saved hard for many years and had about 2- 3 other jobs eventually in 1980 he bought a Daytona 6263 for around £750 but not 100% sure of price,but originally he wanted a sub, but Daytona was cheaper plus AD gave him a discount.At this time this watch was quite a bit cheaper, than the other sports range,but still a lot of money even back then.He was very proud of his Rolex watch,and it was only worn on special occasions.Dad was always a hard worker but suffered with ill health for most of his short life.Dad had 14 brothers and two sisters,a very large and close nit family.Now this 6263 is not a watch or a money object to me it's part of my Dad, thought I would share a part of his life with you all.


My Father was a miner for almost 40 years,but alas he died at the age of nearly 56 years.He suffered with his heart and chest after WW11 he lied about his age he was just 17 and although a coal collier in then a reserved occupation.He joined the navy and was on aircraft carriers HMS Furious and HMS Glorious.Now the Glorious was attacked by the German battle-cruisers, Scharnhorst and Gneisenau and a direct hit,caused her to sink.Out of a complement of of around 1500 men there were only 39 recorded survivors.My Father was reported missing,presumed killed in action.But was picked up by a Norwegian fishing boat, after being in the that cold sea for almost 32 hours.And without a shadow of a doubt that experience, and 35 odd years in the mines helped shorten his life.My Dad was a very strict but fair, private man, and did not complain about his illnesses.When he died, it was just like I lost my best friend,and now myself in my late 70s, I still think about and miss him.And in the 6263 a small part of him lives on,this watch is very special to me,and would never part with it at any price.

Thank you for telling your (and your father’s story). Very interesting and a nice change to the usual posts complaining about AD availability.

[Macnavara]

Originally Posted by padi56

Have to agree this is what owning a Rolex watch should be about it's not like most of today's investment this or that and mostly ££$$$££. Now my Father was fascinated with watches and I can thank him I suppose for the watch bug.Now I can always remember when I was quite young, my Dad saying one day he will have a Rolex.Now myself at the time had no idea what a Rolex watch was.Dad saved hard for many years and had about 2- 3 other jobs eventually in 1980 he bought a Daytona 6263 for around £750 but not 100% sure of price,but originally he wanted a sub, but Daytona was cheaper plus AD gave him a discount.At this time this watch was quite a bit cheaper, than the other sports range,but still a lot of money even back then.He was very proud of his Rolex watch,and it was only worn on special occasions.Dad was always a hard worker but suffered with ill health for most of his short life.Dad had 14 brothers and two sisters,a very large and close nit family.Now this 6263 is not a watch or a money object to me it's part of my Dad, thought I would share a part of his life with you all.


My Father was a miner for almost 40 years,but alas he died at the age of nearly 56 years.He suffered with his heart and chest after WW11 he lied about his age he was just 17 and although a coal collier in then a reserved occupation.He joined the navy and was on aircraft carriers HMS Furious and HMS Glorious.Now the Glorious was attacked by the German battle-cruisers, Scharnhorst and Gneisenau and a direct hit,caused her to sink.Out of a complement of of around 1500 men there were only 39 recorded survivors.My Father was reported missing,presumed killed in action.But was picked up by a Norwegian fishing boat, after being in the that cold sea for almost 32 hours.And without a shadow of a doubt that experience, and 35 odd years in the mines helped shorten his life.My Dad was a very strict but fair, private man, and did not complain about his illnesses.When he died, it was just like I lost my best friend,and now myself in my late 70s, I still think about and miss him.And in the 6263 a small part of him lives on,this watch is very special to me,and would never part with it at any price.

Thanks for sharing Peter....it sounds like your Dad packed a lot into his life.
My Dad passed away last year and I often think about the the expression its not the years in your life but the the life in your years.
Some people do nothing with the 100yrs they live whilst others have all sorts of adventures with their shorter years.
My dad didnt care much for watches infact all I have from my dad is his silver chain but like you i will cherish it as part of him for ever.
I miss my dad alot too ....i was working with him on his house renovation when he was taken ill suddenly and died four weeks later....still in shock now.
Nobody can take our precious memories ......here’s to all the great Dads past and present

[HiBoost]

Originally Posted by padi56

Now my Father was fascinated with watches and I can thank him I suppose for the watch bug.Now I can always remember when I was quite young, my Dad saying one day he will have a Rolex.Now myself at the time had no idea what a Rolex watch was.Dad saved hard for many years and had about 2- 3 other jobs eventually in 1980 he bought a Daytona 6263 for around £750 but not 100% sure of price,but originally he wanted a sub, but Daytona was cheaper plus AD gave him a discount.At this time this watch was quite a bit cheaper, than the other sports range,but still a lot of money even back then.He was very proud of his Rolex watch,and it was only worn on special occasions.Dad was always a hard worker but suffered with ill health for most of his short life.Dad had 14 brothers and two sisters,a very large and close nit family.Now this 6263 is not a watch or a money object to me it's part of my Dad, thought I would share a part of his life with you all.


My Father was a miner for almost 40 years,but alas he died at the age of nearly 56 years.He suffered with his heart and chest after WW11 he lied about his age he was just 17 and although a coal collier in then a reserved occupation.He joined the navy and was on aircraft carriers HMS Furious and HMS Glorious.Now the Glorious was attacked by the German battle-cruisers, Scharnhorst and Gneisenau and a direct hit,caused her to sink.Out of a complement of of around 1500 men there were only 39 recorded survivors.My Father was reported missing,presumed killed in action.But was picked up by a Norwegian fishing boat, after being in the that cold sea for almost 32 hours.And without a shadow of a doubt that experience, and 35 odd years in the mines helped shorten his life.My Dad was a very strict but fair, private man, and did not complain about his illnesses.When he died, it was just like I lost my best friend,and now myself in my late 70s, I still think about and miss him.And in the 6263 a small part of him lives on,this watch is very special to me,and would never part with it at any price.

An amazing story, thank you for sharing. Your dad's story captures the magic that I have always associated with the brand. REAL men, hard working, driven individuals looked to this brand with admiration. And it was always something that was attainable for those willing to work for it. Today's market is definitely an embarrassment when held next to that past. I hope you have a deserving recipient to pass that 6263 along to someday. Cannot ever let something like that go to a stranger.

[PenPaper]

Sounded like a good idea to me once, to be able to enjoy watches and have them as an investment tool.

Say I've just purchased a $20k watch at retail, and market value is $25k. As a member of the public, I would probably have to sell it at a lower price compared with the reputable and established resale dealers, maybe $24k? And each time I would still have to contend with issues of safety and security during delivery or meetups with buyers, of haggling over prices with would-be customers, of no-show customers, and so on. And if I take it to the resale dealer instead, chances are I wouldn't be getting a lot more than the $20k I paid for in the first instance, if at all.

And! (at least in line with practices in my region) all this without even considering the purchase and similar sale of other pieces to even be allowed access to the piece in question. So just too much of a hassle for me in the end.