In a word, yes.
In a world of things to buy and own, it is rare to find something that not only holds its value but has high potential to increase its worth without you doing anything to aid it. Most of us are used to people saying that the value of a car, one of our significant investments, will go down instantly. We have all heard the saying “lost half its value coming out of the showroom,” that is an exaggeration, but they do lose value quickly. Also, many of us will eagerly await the new iPhone release even though we know the one we now have will drop in worth.
In the world of investments, very few things hold their value or indeed have gone up on a consistent, yearly basis, like the Rolex watch. The only others that come to mind are gold itself and the investments of Warren Buffet or are things that require work to maintain and improve like a luxury car or shares.
As you can see, the price of these watches has risen sharply, if you bought yourself one in 2010, it would have doubled in price in that time. There are many reasons these watches have increased in price. Record auctions, the “Paul Newman” watch, being featured in movies and several celebrities wearing them and endorsing them are a few of the reasons.
My Air King:
I have a 1960’s Air King which retails between £2-3K, and I think it is very good looking. It is also experiencing the price increase, and in the two years I have had it, it has gone up in value by 22%.
Why the increase?
People want to understand why the cost of these watches keeps going up to make sure, like the US property market, they don’t get in when it’s hot and pay to much. These are the reason that won’t happen.
- Retail price increase:
The new price sale keeps going up. Buying a new Rolex from the shop is also getting more expensive, this is a market where regular buyers are second-hand buyers.
- Limited production:
One of the things I like most about Rolex as a company, other than their attention to detail, is that they only make a limited number of watches a year in each model. It is a high amount, with some sources quoting as high as half a million a year, but that might be as low as 50k on a particular type, meaning your 1992 Daytona in 18ct gold is only one of 20k for sale in the second-hand market globally.
- International market:
Unlike many things, a watch can be sold via photos and the internet. A lot of buyers for these are in countries like China and Japan, which have growing economies now hungry for European luxury items.
If you are looking for an excellent rainy day investment that will go up in price without you having to monitor it, a luxury watch is for you. I am clearly a Rolex fan, but if you swing by Hopkins and Jones, we’d be happy to find a second-hand luxury watch in your budget. Also, unlike a term deposit, you can look good wearing it. We also offer same day pawnbroking loan service on luxury watches and antique items.