Is it really true Rolex will keep its value ?!?!

[RONeb]

Think about it, many people claim that if you will buy a nice Rolex (SD,SUB,GMT and so on), than few years from now you will be able to sell it with not so much lost (or even nothing, because the prices always go up)
But
I see that at sites like EBAY you can get some old "rear" Rolex's like the Comax SD, and red dot and so on for a lot of $, but an almost new Sub-Date will goes sometime much lower than a brand new one

People in the old days didn't have that much Rolex's, so it was more rear and some thing more distinctive , but now days just take a look here and see how much guys have a Rolex SD for instance

So, maybe just like in the car industry, just like an old BMW is worth a lot, but no one will care a few years from now about a 2006 5's model, maybe the same thing is going to be with Rolex's watches?

Maybe some day from now, people will still admire models of the 60's and 70's but no one will want a 2000's model? and prefer having a brand new one?

Just my 2 cents, hope you can share with me yours

[SPACE-DWELLER]

If you bought an old Sub, like the 5513 for instance, as new back when it was still made, and then sold it, then you would make a nice profit.

But of ALL the CURRENT Rolex models, there is basically just ONE that you could make a profit one straight after having sold it, and even in some years: The SS Daytona.

[Tools]

.
Ron,
I'll agree with you....Older, rare/vintage Rolex can command a staggering price. It is true; there were just not that many of them made a decade or two ago. Today, with almost a million watches each year flooding the market, it is unlikely that anything of recent manufacture will gain in value until a LOT of time has passed. Probably more time than the older vintages had to wait before they became "rare".

However, a Rolex will retain a higher percentage of it's retail price than most of it's competitors.

If you bought a Rolex sub 5 years ago, you WILL be able to sell it and get much of your cost back.. you probably won't make money unless you got it for a killer price.


Most other watches 5 years old will not have ANY market and you might as well toss it if it takes up too much room.

There are of course exceptions with the other quality high end watch manufacturers.....there is a market for them, but still, you might struggle to get as high a return for your investment than with a Rolex..

[vh_bu98]

Also keep in mind that Rolex keeps raising their prices which helps the resale value as well.

[waltk1026]

I had mentioned before 29 yrs ago I paid $525 for my 5513 Sub, That would be a hefty profit if I sold it today, my newer Rolex I would take a bath.

[BiG JeEzY]

Originally Posted by vh_bu98

Also keep in mind that Rolex keeps raising their prices which helps the resale value as well.

Yes raising the prices does keep the resale value high. Another theory of why Rolexes hold their resale value so well compared to other fine swiss brands is because they keep their designs original and only make very slow, gradual changes to them over a long period of time, thus making the older watches never go "out of fashion."

I read this from an FAQ before.

Vintage timepieces are also selling more than what they were going for back when they came out because they are more collectible as well.

Modern timepieces are holding their value very well also even with a slight depreciation. They are holding it much better than many other brands thats for sure. When the modern timepieces become either

1. Limited and
2. Stopped in production

then expect their resale to increase just like the vintage timepieces as well. It might take a while to see though. An example is the older 16710 which just stopped in production and I expect to see an increase in resale eventually.

[nickp]

I bought my SS Sub date in 99 from an AD for $2800 thanks to a very nice discount. I could sell it now and make a few dollars on it.

[Solo118]

Im sure if you hold on to it long enough it will keep its value... But honestly I hope to keep my Daytona for life....

[Paulie]

Originally Posted by waltk1026

I had mentioned before 29 yrs ago I paid $525 for my 5513 Sub, That would be a hefty profit if I sold it today, my newer Rolex I would take a bath.

Yep: from "Inflation Calculator"

What cost $525 in 1977 would cost $1796.17 in 2006.

What cost $3550 in 2003 would cost $3863.88 in 2006.

[TimeOnHand]

I bought a brand new Pepsi at a 10% discount and sold it 10 months later and only lost 15% of what I paid for it!

[triton]

Originally Posted by cx007

I bought a brand new Pepsi at a 10% discount and sold it 10 months later and only lost 15% of what I paid for it!

Ouch.

[Gaijin]

Did your Pepsi go flat after such a long time?

[Henry T]

Originally Posted by KansaiVet

Did your Pepsi go flat after such a long time?

Mine didn't. Flipped it after 3 months and took a 10% hit.

[Doug Rochon]

I got my 5512 back in 1966 for a bit over $200.00. although thru the years I have spent around 1500.00 on repairs and maintainace. Jut completed a deal on it yesterday and my return was good.

[GoldenBear]

I saw an early model SD in an AD's case. It was from the late 60's. It cost more than any of the SS ones in the shop, including the new GMT II. I bought my SS Sub in '91 for about $1600 (I think). I have seen them sell for around $2500-$3000 and I was offered $2700 as a trade-in from my AD. (Didn't take it) It took 16 years to get there, but I'd make a nice profit. Buying a watch (ex-Daytona at MSRP) and "flipping" it, you will lose money.

[sheldonsmith]

Hi have a table of prices from the last 30 years posted at http://members.aol.com/sheldons4/PriceEvolution.htm

I tried to copy/paste, but the table gets whacked...

-Sheldon

[leopardprey]

Yep: from "Inflation Calculator"

What cost $525 in 1977 would cost $1796.17 in 2006.

What cost $3550 in 2003 would cost $3863.88 in 2006.

Walt, I will give you $1796.17 for your Sub 5513!

[ajmarton]

I sold a Rolex Cal Dial bubble back for a little more than what I purchased it for on EBay years ago and sold a 1990s GMT2 TT Jubilee for more than what I bought it for (purchased used a couple of years ago) - $3200 and sold for $3700. In contrast, I bought an Omega Planet Ocean (I love vintage Omegas and the PO caught my eye) and sold it a couple of months later at 30% loss. That says a lot about Rolex.

[SPACE-DWELLER]

Originally Posted by sheldonsmith

Hi have a table of prices from the last 30 years posted at http://members.aol.com/sheldons4/PriceEvolution.htm

I tried to copy/paste, but the table gets whacked...

-Sheldon

WOW, Sheldon!

Thx!

[waltk1026]

Originally Posted by leopardprey

Yep: from "Inflation Calculator"

What cost $525 in 1977 would cost $1796.17 in 2006.

What cost $3550 in 2003 would cost $3863.88 in 2006.

Walt, I will give you $1796.17 for your Sub 5513!

Thanks for the offer Chad but I could not part with that old sub, besides my son wouldn't have a Rolex to wear once in a while. I would have to let him borrow my DD. Imagine that happening.

[Atomant]

Before I bought my SD I was shopping around town in a few used watch stores and those places are sellin them Seadwellers at a price higher than what I paid for my SD from an AD. Wonder how legit is that??

[Solar]

I was offered 4500 Cdn for my SD recently, it cost about 6500 Cdn, taxes in, in Jan of this year.................

If you want to make a million dollars in wrist watches, start with 2 million.................

Chris

[Tools]

Originally Posted by GoldenBear

.... I bought my SS Sub in '91 for about $1600 (I think). I have seen them sell for around $2500-$3000 and I was offered $2700 as a trade-in from my AD. (Didn't take it) It took 16 years to get there, but I'd make a nice profit. Buying a watch (ex-Daytona at MSRP) and "flipping" it, you will lose money.

(Nothing personal here Goldie, just a great example )


You don't look at an "inflation calculator" to determine if your investment is good. You look at investment returns compounded over time..

If you had invested your $1,600 bucks and netted an average annual return of about 5% over the 16 year time period, you would have ~$3,500 bucks today.

So, the offer of $2,700, while more than you paid, may not really be a "profit"... unless of course, you want to see it that way..

[Paulie]

Originally Posted by Tools

<snip>
You don't look at an "inflation calculator" to determine if your investment is good. You look at investment returns compounded over time..
<snip>

Agreed. Though how something that depreciates with use can be considered an investment, I'd have to think about more.

My example was on how easy it is to take a bath by flipping recent stuff; you may not even recoup your costs in todays dollars.

[Tools]

Originally Posted by Paulie

Agreed. Though how something that depreciates with use can be considered an investment, I'd have to think about more.

My example was on how easy it is to take a bath by flipping recent stuff; you may not even recoup your costs in todays dollars.

Well, Yes....exactly...

As for investment...Yes again, although not necessarily an investment from a money making perspective, certainly an investment in "self worth", or "self satisfaction"

We spend our money on investments all the time, invest in a full stomach, sex appeal, self worth, satisfaction (The Stones can't get none of that), and monetarily..

If you dwell on how much you will "get back" from a watch investment though, you're looking at the wrong thing..

[Paulie]

Agreed!

[dman]

Originally Posted by Paulie

Agreed. Though how something that depreciates with use can be considered an investment, I'd have to think about more.

My example was on how easy it is to take a bath by flipping recent stuff; you may not even recoup your costs in todays dollars.

Buy low and sell high, like everything else. Works okay for me.

[GoldenBear]

For what it's worth, I am an investment banker with a degree in economics from Berkeley. We weren't talking about the investment horizons over the years. I bought a Rolex several years ago and could have sold it for far more now than I paid for it then. If you want to index it vs, the SPX or the OEX that's one thing. Could I sell it for MORE than I paid for it...Yes, I could. That was the question!!!

[dman]

Originally Posted by GoldenBear

For what it's worth, I am an investment banker with a degree in economics from Berkeley. We weren't talking about the investment horizons over the years. I bought a Rolex several years ago and could have sold it for far more now than I paid for it then. If you want to index it vs, the SPX or the OEX that's one thing. Could I sell it for MORE than I paid for it...Yes, I could. That was the question!!!

Who get real? The question was will it hold it's value.

One person could have just logged on and said yes, then we could have closed the thread down, but that would have been know fun.

[JS84T]

This is an odd thing. I was just thinking about this very thing the other day when I got my SS back from service in Toronto. The watch is 10 months old, paid roughly 4,900 and change for it. Appraisal on the paperwork coming back from Rolex was 6.220.00. Owned for 10 months and that's a pretty good return.

You know how they say you can't take it with you? This one... I'm taking it with me.