Costs for brand spanking new and used watches on the secondary market have been falling for nearly two years. However that does not imply you can now not make a revenue for those who purchase the fitting Rolex watches on the beneficial retail costs.
Fortunately, the times of pinball machines making big on the spot returns are over, however the watch-loving public continues to be influenced by the resale worth of each buy, which is why Rolex continues to have the higher hand with manipulated ready lists at licensed sellers, pushing folks to promote at grey sellers their watches at inflated costs.
Like us, after we take into consideration shopping for an costly automotive, the probably resale worth isn’t ignored.
On common, Rolex watches command a 20.3% premium on the secondary market, whereas Patek Philippe watches promote for 39% over retail and Audemars Piguet fashions will be resold at a 14% return.
Outdoors of the large three, the overwhelming majority of watches on the secondary market are bought at a reduction.
However there are massive variations inside the Rolex portfolio, so we have to take a look at a report from Morgan Stanley and WatchCharts to seek out out which Rolex watches maintain their finest worth in immediately’s market.
Rolex Submariner
First up is the Rolex Submariner, an iconic diving watch that has been in style with watch lovers for many years. Their timeless design, performance and excessive funding potential make them a should for any severe watch collector.
Throughout eight Submariner references examined for the Morgan Stanley report, the mannequin presents a return on funding of 24.2%. The typical value on the finish of 2023 was $23,038, 5.8% decrease than a 12 months in the past.
Rolex GMT Grasp
Subsequent up is the Rolex GMT Grasp II. This watch is thought for its twin time zone characteristic and is in style with vacationers and enterprise folks alike.
Calculating the secondary market value for 9 GMT-Grasp references, Morgan Stanley finds that it’s the best-performing assortment amongst all Rolex watches, priced 48.2% above instructed retail costs.
The typical value for a GMT Grasp is listed at $29,421, which is 7.5% decrease than on the finish of 2022.
Rolex Daytona
The Rolex Daytona, a watch synonymous with motorsports, has been the sellers’ alternative for a decade, thanks partly to its speedy rise in recognition after Paul Newman’s Daytona bought for a world report value of $17 in 2017. Offered for $8 million.
Within the second quarter of 2022, no mannequin skilled the biggest value improve or the quickest value decline on both aspect of a peak, however continues to be buying and selling at a 40.8% premium to retail in immediately’s market.
Rolex Datejust
Rolex’s sportier watches have been in buyers’ crosshairs in recent times, however the basic Rolex Datejust, in all its iterations, stays a workhorse for The Crown and a strong wager for collectors who merely need their watches to retain their worth.
In keeping with Morgan Stanley, Datejusts not solely maintain their worth, however are nonetheless buying and selling at a 15.4% premium to retail costs throughout 45 references within the examine.
Rolex Oyster Perpetual
One other quantity participant within the Rolex catalog is the common-or-garden Oyster Perpetual automated household, which was up to date in 2020 with a variety of sizes and colours, a few of which (notably the sunshine blue items) turned flipper cash printing machines.
In its examine, Morgan Stanley examines the typical costs of 25 references and places the present common value at $7,860, 32.4% above the retail value. The typical value has fallen by 6% within the final 12 months.
In case you suppose shopping for a Rolex means cash within the financial institution, there are collections that at the moment are buying and selling at a reduction to retail value.
In keeping with the Morgan Stanley/WatchCharts examine, you will lose 1.4% for those who take a Yacht-Grasp out the door of a licensed Rolex seller.
Sea-Dwellers are doing even worse, buying and selling at a 2.7% low cost on the secondary market immediately.
Total, Rolex costs on the secondary market commerce at a mean premium of 20.3% over retail costs.
Nevertheless, shoppers ought to be conscious that any skilled seller will buy watches nicely beneath marketed market costs. They need to make their very own margins once they settle for a watch, that means the overwhelming majority of Rolex watches today can’t be traded in for a revenue in any respect.
It is value reminding ourselves that investing in Rolex watches isn’t just about shopping for a watch, but additionally about investing in a chunk of historical past. The suitable mannequin can function a invaluable asset that will increase in worth over time whereas reliably conserving time for many years.
