In times of relatively high inflation, it is always a good idea to find an investment that offers a higher-than-usual return. Of course, times of inflation also tend to coincide with times of higher interest rates. With consumer inflation fluctuating in the UK at around the 10 percent mark, Bank of England interest rates are currently lagging significantly behind. Therefore, even the best savings accounts on offer for ordinary people – as opposed to financial institutions – don’t protect savers from diminishing returns. What can beat this trend, however, is an investment in something that is already subject to high inflationary demand itself. In this regard, luxury watches make for very sound investment vehicles. In particular, Rolexes are seen by many as inflation-busting investments so long as you look after them, that is.
There are numerous ways that Rolexes can be measured for investment growth. What this boils down to is the average price that people are willing to pay for these sorts of luxury chronometers over a given period. In one report that came out in the middle of 2022, it was found that the asking price of a typical Rolex had shot up by 4.2 percent from the start of the year. That’s not bad for just six months or so of growth, of course. However, another similar report found that the figure was higher, standing at 4.9 percent.
It should be said that these are indicative figures only. There is no way that the price of every used Rolex that has been sold privately within a given set of months can be measured. Nor, it should be added, does an average rate of growth represent the areas of greatest interest. When something collectible comes onto the market, the asking prices in recent years for Rolexes have been subject to significantly higher price inflation than a few percentage points. Nevertheless, the main thing to take on board about Rolexes is that they continue to accrue value across the board.
What’s more, even second-hand models that have been worn a lot and are worth a bit less than those in pristine condition are still going up in value. Oddities or watches with a particular provenance, such as the famous Daytona that was once owned by Paul Newman, may make the headlines with spectacular prices – £15.5 million in Daytona’s case – but all Rolexes make for good investments. According to Bonds of Brentwood, a firm that buys and sells all sorts of luxury watches, part of this is because Rolex was struck by a downturn in production in 2020 and 2021, something it is only just putting right.
This fed interest in pre-worn Rolexes, helping to make an already buoyant marketplace even more favorable for investors. As inflation has picked up in other sectors, interest in owning a Rolex as an investment has only grown. Even adjusting for historical inflation, popular models like the Submariner have outstripped other watches for price growth since the 1980s and even before then. In short, the wider economic conditions have only served to make Rolex investments even more favorable in the last few years than they already were.
