To be straightforward, all luxury watches are good investments, especially in times of rising prices and higher interest rates when other sorts of investments might start to look a little riskier. People tend to invest more in physical commodities when the economic times are tougher, especially portable ones. And what could be more portable than a Rolex watch? After all, they can be worn or transported in their box. Even better, the Swiss brand is known all over the world. Rolexes hold their value in markets throughout the globe. However, a Rolex watch offers even better investment potential than simply because it is so recognisable. Why?

Supply and Demand

To begin with, Rolexes are not churned off a production line in the Alps. This means that they are currently in demand. In fact, they’re always sought-after. Given that the watchmaker also suffered greatly during the pandemic, its range is even more sought-after than ever before. Indeed, Rolex’s current crop of watches is only just gearing up to pre-pandemic production levels. Given that demand outstrips demand so greatly, the prices people are willing to pay for Rolexes keep going up, the ideal situation for any owner-investor.

Product Quality

Few luxury brands have the same pedigree as Rolex when it comes to quality craftsmanship. As one seller of unworn and second-hand Rolex watches, Bonds of Brentwood, puts it, British watch buyers trust the brand more than any other. No one wants to invest in a luxury watch that doesn’t keep good time or that has other issues with it, such as internal condensation. Investors need to know that their watch will still work perfectly years down the line and Rolex’s production processes all but guarantee this.

High Growth Potential

It isn’t just the demand for new Rolexes that pushes up asking prices because even discontinued models continue to offer high yields. After all, the most expensive watch ever sold at auction was a Rolex. Bear in mind that Rolex put up its prices for new models by 4.2 per cent at the start of 2022. However, used models that remain in top condition from the 1950s and 1960s will often have gained more in value than that over the course of the last twelve months. Of course, there is no telling what the market will be like in ten years’ time. Nevertheless, Rolexes have been consistently excellent investments since the Second World War and show few signs of changing.

A Pleasure to Own

Some people invest in a Rolex and lock it away in a safe or a security deposit box. That’s fair enough because not everyone likes to wear a luxury watch worth thousands. However, part of the appeal of a Rolex is what it looks like when it is worn. Investors can choose to wear their Rolex if they want. That’s something you can’t say about a bond issue or a stock option, of course. As such, Rolexes are a very different sort of investment from the usual financial products because they offer the owner pleasure.

The post Is a Rolex Watch a Good Investment? appeared first on MoneyMiniBlog.