Are Rolex Prices coming down?

Are Rolex Prices coming down?

Over the last few years the investment value of watches, particularly Rolex watches, has been a hot topic of discussion. You might have seen online that some of the Rolex prices are beginning to fall or ‘soften’. But, does that mean that Rolex isn’t such a good investment after all?

Well the answer is “yes”…. and “no”.

Investment Watches 

In our guide to investment watches, we offer expert advice on choosing the right watches to put your money into. With the current price correction, it is only the less cautious who are going to be feeling the effects.

Compared to other things that we regularly spend our money on, the cost of a standard mid-vintage sports Rolex, really doesn’t seem excessive. In fact prices could go up another 20 or 30 percent without being unreasonable and that’s still the case.

Over Inflation 

At the other end of the scale however, are the watches whose values are massively over inflated. It’s no surprise that these are the ones that are seeing a slight downward shift.

A £25,000 Patek Phillipe 5711 Nautilus has seen a dramatic price rise recently – to as much as £162,000.  Now you don’t have to be a rocket scientist to work out that this could be an unsustainable situation. Indeed prices have come down recently. Having said that, they’ve only dropped about £7,500, (less than 5%) and the 5711 is still selling at more than six times its original retail price.

The 18 carat gold, green dialled Rolex Daytona ‘John Mayer’ is another watch that’s taken a hit.  This is a £30,000 watch that was selling for £120,000 and has now come down closer to £80,000.

Come a bit further down the scale and you’ll see that an unworn Rolex Daytona is still valued at around three times its retail price. That may also be unsustainable.

Sitting Pretty 

These overvalued, very high end pieces are the kind of watches that are going to be feeling the pressure, but then only in the short term. Give it a few years and prices will recover on all but the most ridiculously overpriced pieces.

That beautiful  early 2000’s GMT Master or Submariner that you bought last year is still reasonably priced and  demand will always be high for genuinely rare watches. Your money will always be much safer there.

In summary, should you be worried? If you have a lot of money in massively over inflated, very high end pieces that you bought at the top of the market then possibly.  But then again, if you can pay £160,000 for a £25,000 watch then I guess you can afford it.

If you are a regular Joe who wears more reasonably priced ‘normal’ luxury watches then I certainly wouldn’t lose any sleep, especially if you wear it and enjoy it for another year or so.

 

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