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Are Rolex watches really a good investement?

Luxury watches, especially Rolex watches, have been bought as investments across Europe for several months – and on a large scale. For many years now, the interest rate markets have barely offered any noteworthy income. Anyone who puts their money in a savings account or a fixed-term deposit account cannot even compensate for the decline in value caused by inflation. Many investors are therefore looking for alternatives to protect and increase their wealth.

Precious metals, works of art, vehicles or real estate, for example, can be considered as alternative investments. Every form of investment has its pitfalls and opportunities. Before investing, investors should therefore be clear about the goals they are pursuing with their commitments. Many watch enthusiasts of course inevitably rely on watches with added value. However, this is risky and should be clarified with your tax advisor beforehand. What else has to be considered is shown by our editorial team in this article.

Consider this before buying an investment watch

When choosing the model, it is a good strategy to be guided by the quality and brand awareness. Rolex has an excellent reputation and can be considered a “secret currency” around the world. An original Rolex can be sold anywhere at a good price without any problems. The brand has firmly established itself on the market as an indestructible and absolute luxury.

When buying a Rolex, make sure that all papers and the original packaging are available. The documents will later serve as proof of authenticity and documentation for a legal purchase. If the previous owner has receipts for repairs or maintenance work carried out, have them handed over to you. A flawless condition increases the value of the watch for resale.

Are Rolex watches a long-term investment?

For short-term speculations with luxury watches you have to have a very good nose. Here it is important to find bargains that have not been noticed and to sell them again at a later point for profit. The margins are usually not very high and if the sale is made within a year, the profits from private sales transactions must be taxed. For a long-term investment, you can’t go wrong with high-quality watches.

With the current interest rates, financing through a loan can also be worthwhile if the personal financial situation is not sufficient for a purchase. With an online credit comparison, for example, you can quickly determine whether a loan would be worthwhile. The previous value development of coveted Rolex models can be found in various forums and used for a calculation. For example, with the value development for the Rolex Explorer II, one can observe a steady increase in prices over many years.

While this model cost $ 386 in 1973, the price rose to over $ 6,000 by 2010. Depending on the design, a Rolex Explorer II today can cost anywhere from $ 4,500 to over $ 6,000 for a simple construction. It should be noted, however, that these developments do not necessarily continue in the same way. As with stocks, the value of luxury items can fall when demand falls.

When to sell your investment Rolex again

There are several options for a successful sale. It is conceivable to find a private collector yourself and offer him the watch directly. Basically it depends on the seller’s negotiating skills which price is actually achieved. If it is a very rare specimen, the seller’s arguments are certainly more impressive than if the model can still be purchased in larger numbers at any trading center. Another option is to offer the watch to a dealer.

Here you have to be aware that the dealer also wants to earn something from the deal. On the other hand, a sale can be processed very quickly within this framework. You practically pay for the swift transaction with a small loss of profit. Since it would take a lot of time to find a real prospect, this may not be a bad solution. The third option is an auction. Depending on the item, you can deliver the item to an international auction house or try your hand at online sales.

Perfect photos and a detailed description are important for a good presentation. If the values ​​are high, it is advisable to set a limit for the sale. This prevents the item from being sold below its value. Auction houses and online portals charge a fee for the seller when the bid is accepted. You should include these costs in your calculation for the price.

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