Rolex as investment?

[Thunderbird88]

Hello people.

I recently bought me a 16713 as a 22 year present for myself and that got me thinking, investment?
Im not planning on earning 50% in 2 years because that's just absurd. Thinking more like instead of having money in the bank, buy (second hand) Rolexes and atleast in the end even out.
Why?
Well, first of all I would enjoy a Rolex a lot more than money on the bank.
When I need the money I'll simply just sell it. Sure it takes time to sell, I understand that.

Is it a stupid idea?
I first of all want two 16710's to complete the GMT beverages, already have the Root Beer so a Pepsi and one Coke to go.

About me: 22 years old.
I have no home, high income job in my opinion but definetly no millionare (working abroad 10 months a year minimum), my monthly expense is $50 for car storage and $10 for Spotify. Then booze etc ofcourse.
Saving all my money to cash in on a house later on whenever I would need it (wont need for the few years coming up).
I just want to enjoy the money a bit but not loose too much on it.
And Im not talking putting all my money in to Rolexes, not even half. Just buy a few I like.

So, stupid idea?

[nygo]

yes.

[landroverking]

Rolex as an investment..... Here we go again, NOT!

[Thunderbird88]

Just asking guys.
I don't expect to earn anything. Just even out in the long run.

[77T]

If you can save 2 yrs worth of salary in cash, then a couple of vintage Rolex wouldn't be a big slice of your assets and sounds reasonable.

But they are not liquid when cash is needed fast.

If you set-up a watch fund and build experience to avoid replicas then it's just part of enjoying "serial ownership" as you flip watches through the rest of your life.

But the long term appreciation of the model you mentioned will take a long time since so many millions are out there now. No real investment value point currently...

[beshannon]

High end luxury jewelry is not an investment.

Buy a watch you like and want to wear.

Good luck!

[padi56]

No comment other investments they are not Rolex watches are for wearing and enjoying wearing..

[Metalheart]

An asset, maybe, maybe but definitely not an investment!

[Roller07]

Rolex as an investment? Yes, a stupid idea.

Rolex as a watch(or watches) to enjoy? Yes, a great idea.

[watchwatcher]

Well if you're just going to even out, that's not much of an investment...

Enjoy the watch you have and put the rest of it in something that will earn you something back. My thoughts, anyway.

[Fiery]

If you want to buy Rolex watches as an investment: not a good idea. If you want to put your money into Rolex watches that keep their value, and ones that are great to wear as well: could work. Just make sure to buy only steel models and always at a great price 2nd hand, with papers + box.

When it comes to wristwatch investment, the only thing _might_ work would be buying rare high-end Patek watches like 2499J or such. But then you cannot wear that for a second, such pieces sadly spend their whole lives in safe... For Rolex watches you have to wait several years to have their 2nd hand market value appreciate considerably, and you have to take into account several other factors like potential damages, insurance, service costs and last but not least inflation. When you add everything up, it's just not nearly as great as putting your money into stocks or real estate.

[Onikage]

Very. Servicing more than a couple over the years could be costly. Then you have to become a mini dealer unless you want pawnshop special prices. Major ballache and little if any chance of a return. It's your call however..

[jjnd08]

It's not an investment, search for the countless threads on here. Could you end up making money in the long run or break even? Maybe.

But don't forget in the interim you need to worry about the condition you keep the watch, paying for services when needed, and paying for insurance on the watch. You also need demand to stay high for Rolexes. In a good economy, there will always be a demand. But if the economy turns sour, a larger group of people will have bigger concerns than what is on their wrist.

[JJL]

I would never try to buy one as an investment - however buy something (used) you can wear and enjoy for however long you'd like, with the hope / peace of mind that it should be worth close to what you got it for X years ago. If it happens to be worth a little more, just consider yourself lucky and it's a little bonus.

[Thunderbird88]

Originally Posted by 77T

If you can save 2 yrs worth of salary in cash, then a couple of vintage Rolex wouldn't be a big slice of your assets and sounds reasonable.

But they are not liquid when cash is needed fast.

If you set-up a watch fund and build experience to avoid replicas then it's just part of enjoying "serial ownership" as you flip watches through the rest of your life.

But the long term appreciation of the model you mentioned will take a long time since so many millions are out there now. No real investment value point currently...

Yeah, earning money is very difficult on it since, as you said, theres millions of them.
One thing if you find a 50's Submariner for same price as a 90's one, but that feels quite unlikely (not saying impossible!).

Just want to enjoy it and not loose money.

Originally Posted by beshannon

High end luxury jewelry is not an investment.

Buy a watch you like and want to wear.

Good luck!

Already have!
If I buy more I will ofcourse wear them aswell.

Originally Posted by Metalheart

An asset, maybe, maybe but definitely not an investment!

Yeah, maybe asset is the word Im trying to get out.

Originally Posted by JJL

I would never try to buy one as an investment - however buy something (used) you can wear and enjoy for however long you'd like, with the hope / peace of mind that it should be worth close to what you got it for X years ago. If it happens to be worth a little more, just consider yourself lucky and it's a little bonus.

Thats what I mean!
I dont even expect to earn on it. Just enjoy it and when time comes to buy a house, I'll get rid of them and hopefully even out/not loose too much.

[Onikage]

Nice thing to have as well as money in the bank. No doubt about it. You won't lose much on used steel sports. Might even make. Which is nice!

[Thunderbird88]

Originally Posted by Fiery

If you want to buy Rolex watches as an investment: not a good idea. If you want to put your money into Rolex watches that keep their value, and ones that are great to wear as well: could work. Just make sure to buy only steel models and always at a great price 2nd hand, with papers + box.

When it comes to wristwatch investment, the only thing _might_ work would be buying rare high-end Patek watches like 2499J or such. But then you cannot wear that for a second, such pieces sadly spend their whole lives in safe... For Rolex watches you have to wait several years to have their 2nd hand market value appreciate considerably, and you have to take into account several other factors like potential damages, insurance, service costs and last but not least inflation. When you add everything up, it's just not nearly as great as putting your money into stocks or real estate.

Originally Posted by jjnd08

It's not an investment, search for the countless threads on here. Could you end up making money in the long run or break even? Maybe.

But don't forget in the interim you need to worry about the condition you keep the watch, paying for services when needed, and paying for insurance on the watch. You also need demand to stay high for Rolexes. In a good economy, there will always be a demand. But if the economy turns sour, a larger group of people will have bigger concerns than what is on their wrist.

Did not think of servicing them.
One isnt that bad in service cost, but 4-5 of them is a whole different story.
I intend to wear them, so they will get worn and loose a little value.
How is the price in a lets say 1990's Pepsi?
Is it steady or is it slowly increasing (Read: will I break even with a worn and a little bit scratched one a few years later if I bought one in perfect shape)?

[Urosfan]

Investment no, enjoyment hell yeah.

[Casey VP-26]

Sounds like your living a good life, enjoy it. I don't believe there is anything wrong with looking at a Rolex as an investment. This will mostly depend on the model you choose.
The 16710's in coke and pepsi are discontinued and if you can get them at a reasonable price they should at least hold their value in the future. OMHO, Good Luck.

[newu5er]

I won't reiterate everything that has been said here already, but I find it pretty astounding that someone would consider buying a Rolex to get a return on it. Why not look at precious metals or something with a proven track record? I understand your point that having the watches are more fun that having the money, but thinking like this is what will separate you from continuing to build wealth.

[beshannon]

Originally Posted by Thunderbird88

I dont even expect to earn on it. Just enjoy it and when time comes to buy a house, I'll get rid of them and hopefully even out/not loose too much.

I cannot disagree with this strongly enough but you are free to do as you wish.

I could never imagine selling a watch I have had for years that I enjoy just to buy a house. Far better off to invest the money into stock, bonds or other real estate with a specific target in mind for a future purchase.

[Angrypuppy]

I wouldn't say stupid, but not well thought out. Hopefully you get the information you need in this thread to make a decision.

[Thunderbird88]

Originally Posted by newu5er

I won't reiterate everything that has been said here already, but I find it pretty astounding that someone would consider buying a Rolex to get a return on it. Why not look at precious metals or something with a proven track record? I understand your point that having the watches are more fun that having the money, but thinking like this is what will separate you from continuing to build wealth.

I just want to even out, thats it.
If I could earn, its not much and I dont expect it.

Originally Posted by beshannon

I cannot disagree with this strongly enough but you are free to do as you wish.

I could never imagine selling a watch I have had for years that I enjoy just to buy a house. Far better off to invest the money into stock, bonds or other real estate with a specific target in mind for a future purchase.

A watch I could sell. Thats why I bought one in the first place.
Hell thats even the reason I bought Rolex! They keep their value better than Omega. Otherwise I would have taken an Omega any day of the week.
Stocks and bonds, sure. I can go a lot further with that. But Im still not enjoying the money if I put them in bonds!

Originally Posted by Angrypuppy

I wouldn't say stupid, but not well thought out. Hopefully you get the information you need in this thread to make a decision.

Thats what Im trying to collect with this thread!

Thank you all for your posts so far!

[Old Expat Beast]

Educate yourself thoroughly and find a cheap, steady source. Plenty of people make a living selling used Rolex.

[Chewbacca]

not again.

[beshannon]

Originally Posted by Thunderbird88

But Im still not enjoying the money if I put them in bonds!

I would be enjoying the steady income stream.

I'm out, good luck!

[One Ping Only]

Invest in stocks.
Indulge in watches.

[Jake B]

Originally Posted by Old Expat Beast

Educate yourself thoroughly and find a cheap, steady source. Plenty of people make a living selling used Rolex.

My guess would be that not many of them are in Sweden for 2 months out of the year, and in mainland China for the balance.

[Gaijin]

I say do it. Live. You sound like a young man with a good head on his shoulders. Buy a couple Rolex steel models. The discontinued GMT if you can find one or the Green LV Submariner should at least hold their value. After that though I say work on getting the house and a good investment portfolio of stocks. Good luck.

[Duey]

Originally Posted by Old Expat Beast

Educate yourself thoroughly and find a cheap, steady source. Plenty of people make a living selling used Rolex.

Totally agree 100%

And yes certain Rolex watches are investments. Just like any investment buy low, like from here on TRF, and sell high, like from here on TRF.