<start rant> Rolex is not an investment

[dtekrad]

excellent information here on Rolex as "investment." I think when people use this word they are using it to describe whether it serves more as storage of wealth rather than buying shares of stocks or bonds. Currently the stock market is at all time highs and in due time our portfoilos can decrease anywhere from 20-50% with a recession.

IMHO, if we have desirable Rolex models, it will retain much of its value and in 10-20 years the return will be of equal and/or higher value. General invesment advice do suggest keeping 'hard assets' in our portfolios at approx 10% which refer to precious metals (ie gold, silver). Why not have a Rolex as part of that category.

-JR

[Amochosto]

Investments pay dividends. Dividends buy me Rolexes!

[Greenandwhite]

Originally Posted by TimeToWatch

I think people too often confuse speculation with investing.

I’d say anything that in and of itself generates wealth may be considered an investment. Examples being:
-stocks: you own a piece of a company which generates a profit paid in the form of a dividend or reinvestment into the company
-bonds/treasuries: you are paid a rate commensurate with the riskiness of the asset
-real estate: You can rent the property out and generate a profit.

I think oftentimes people confuse “investment” with speculation. Speculation is buying something on the belief that someone at some future date will be willing to pay more for it based on its inherent worth. Examples of speculation are:
-Gold: Gold generates no wealth. You are simply betting someone will one day pay more for it.
-Bitcoin
-Watches
-Cars

Well said. Everybody should do as they see fit but by definition a Rolex isn’t an investment. That doesn’t mean they cannot appreciate in value.

[Nikrnic]

To me wearing a Rolex is an investmant, not necessarily to make money but to enjoy and hold its value very well.

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[WEST HAM ROLEX]

Originally Posted by MinMay

We're all adults here...we should all be able to do whatever we want with our hard earn money :) .

buy watches...
buy stocks...
buy homes...
buy cars...
buy toys...

So, make your own decision and just make sure you have fun :)

Exactly

[Buckeye4life]

I go by 2 "rules" of thumb: avoid leveraging depreciating assets, and understand the true cost of ownership (e.g. insurance, maintenance, depreciation, and time-value of money, etc.). Rolex watches can perform much better than many other expensive hobbies like cars, clothes, and technology. Buy smart, consider used, and you can get pretty close to wearing a savings account on your wrist.

[faimag]

Not sure why one would get a Rolex, or any watch for that matter, as an investment

I prefer not to wear my long-term financial security on my wrist

[TeddyS]

25/30% drop? SS professional models drop like that?


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[tyler1980]

Originally Posted by dtekrad

excellent information here on Rolex as "investment." I think when people use this word they are using it to describe whether it serves more as storage of wealth rather than buying shares of stocks or bonds. Currently the stock market is at all time highs and in due time our portfoilos can decrease anywhere from 20-50% with a recession.

IMHO, if we have desirable Rolex models, it will retain much of its value and in 10-20 years the return will be of equal and/or higher value. General invesment advice do suggest keeping 'hard assets' in our portfolios at approx 10% which refer to precious metals (ie gold, silver). Why not have a Rolex as part of that category.

-JR

not in the long run they don't. With that timeframe the market will be higher.

If its 50% lower than today in 10-20 years, I can pretty much guarantee that your rolex will also be worth nothing as there will be much bigger problems than trying to sell a watch not a single person can afford. Your watches value is tied to the general health of the economy in a big way so it is illogical to put money in watches to hedge against a stock market crash.

I agree with the concept of a Rolex as a cash equivalent as savings accounts make no interest anyway.

[Bt122]

What he said^

[dtekrad]

Originally Posted by tyler1980

not in the long run they don't. With that timeframe the market will be higher.

If its 50% lower than today in 10-20 years, I can pretty much guarantee that your rolex will also be worth nothing as there will be much bigger problems than trying to sell a watch not a single person can afford. Your watches value is tied to the general health of the economy in a big way so it is illogical to put money in watches to hedge against a stock market crash.

I agree with the concept of a Rolex as a cash equivalent as savings accounts make no interest anyway.

*Tyler. I agree with all your points. I am not stating that we buy Rolex as a cash equivalent to sell when we need to in a down market. I am simply stating that stocks are at all time high and probably a bubble. Next drop will not be pretty and there can easily be a 30-50% drop. Of course the market will return and I feel that the Rolex SS models should retain its price and with a return in economic health, the watch will preserve and possibly be higher than its original pricing.

[Aventura]

You are right in everything. And aside you forgot what a service is worth (around $ 700 that you will need in ten years). When you try to sell it you will never get the same price that you see in the ads of the gray dealers. I assure you that in my long life I sold many things not only watches and I assure you that dealing with a gray dealer is much better than a private one because they have a few dollars and think that they are the kings of the world and will exploit you to the fullest. IMHO.

[Mr. Adair]

Hmmm...

Not sure I agree with those depreciation numbers at all. Are you buying the wrong watches? I'm no stock market guru but every Rolex I have had has averaged 12% increase in value per year. My 401K has been as low as 7%. My 1982 GMT Master was purchased for $2800 and I sold it like a idiot for 6K 7 years later. Probably a 12K watch now. My 5513 was purchased for 5K and I was offered 10K for it last week. Compare with various JLC's/IWC's etc. I have been beaten up by 50% on several! It's also a helluva lot more fun than stocks :)