Are Rolex watch prices still on the decline?
Indeed, some Rolex models continue to see secondary price declines, primarily because of reduced demand at retail. However, it's important to note that the majority of Steel Sports Rolex Models are maintaining their value well. We anticipate that these particular watches won't dip below their retail prices anytime soon.
Rolex GMT Master II
The GMT Master II stands out as one of Rolex’s most sought-after sports models, often commanding lengthy waiting lists, averaging around three years for a steel variant. Since the introduction of the Black and Blue Bezel GMT, fondly dubbed ‘The Batman’, in 2016, this range has experienced a notable surge in demand, resulting in increased premiums. Among the GMT Master II lineup, we anticipate that the following references will continue to carry premiums above their list prices for the foreseeable future, encompassing both Oyster and Jubilee variants:
- ‘Batman / Batgirl’ reference: 126710BLNR
- ‘Pepsi’ reference: 126710BLRO
- ‘Sprite’ reference: 126720VTNR
- ‘Bruce Wayne’ reference: 126710GRNR
Rolex Daytona
Rolex’s most coveted timepiece undoubtedly remains the Daytona. Its evolution, notably with the introduction of a ceramic bezel in 2016, initiated what we now recognize as the infamous ‘waitlist’. Demand for this iconic watch soared, with average wait times initially hovering around 3-6 months. Fast forward to today, and prospective buyers face an astonishing wait of approximately 10-15 years, assuming they’re fortunate enough to secure a spot on a waiting list in the first place.
Similar to the GMT Master II, the most sought-after Daytona models are all in steel variants, including the ‘Panda & Reverse Panda’ reference: 126500LN.
Rolex Submariner
The Rolex Submariner reigns as the world’s most coveted steel sports model. Although more accessible at retail through authorized dealers, steel variants of these watches still command a modest premium for buyers seeking one within a two-year timeframe. For those keen on preserving value, we suggest considering the following models:
- ‘Submariner Date’ reference: 126610LN
- ‘Submariner Non-Date’ reference: 124060LN
- ‘Kermit / Starbucks’ reference: 126610LV
Rolex Sky-Dweller
The Rolex Sky-Dweller stands out as one of the most intricate timepieces ever crafted by Rolex. Securing a steel variant with either a blue or green dial demands a notable premium. Prospective buyers should brace themselves for a potential wait of around three years for the opportunity to acquire one. For those determined to pursue this horological gem, the model number to keep in mind is:
Blue/Green dial – reference: 336934
So what should you do?
While it’s unlikely that any of these Rolex models will dip below retail price, our guiding principle remains: invest in a timepiece you truly enjoy. While the idea of a watch retaining its value is appealing, fixating solely on this aspect could lead to dissatisfaction. It’s crucial to choose a watch that resonates with you, as focusing solely on its value might result in regret and potential financial loss if you decide to sell it later on.
For more help on this subject, check out our Article: Is a Rolex Watch a Good Short-Term Investment in 2024?
Are watches a good investment?
Depending on the brand you choose, some watches can be classified as a ‘good’ investment. However, like all investments, there are several factors to consider, such as the potential depreciation in the price of the purchased watch.
Here are some rules to adhere to when considering watch investments:
Rule No.1 - Stick to Your Budget
The primary rule when investing in watches is to adhere to your budget and try not to exceed it. The more you spend, the higher the risk of financial loss.
If you can comfortably afford to invest £10,000, limit your spending to that amount. If stretching your budget could cause financial strain, reconsider your investment strategy.
It’s advisable to reserve the funds for the desired watch and wait for availability rather than financing the purchase and accruing additional costs through annual percentage rates (APRs).
Rule No.2 - Select the Right Brand
Not all watch brands are equal. While there exists a certain level of snobbery surrounding watch brands, it’s an undisputed fact that some brands are more collectible and sought after than others.
This doesn’t necessarily make them superior, but it does increase their investment potential. Among the top brands offering investment potential are Rolex, Audemars Piguet, and Patek Philippe.
Rule No.3 - Choose the Right Model
After determining the brand you prefer, it’s crucial to select a model that has a high likelihood of retaining or increasing its value. However, this decision is heavily influenced by market trends. What’s popular today may not hold the same appeal in six months or a year.
As of 2024, the most sought-after models include the Rolex Submariner, GMT Master 2, and Daytona; the Audemars Piguet Royal Oak; and the Patek Philippe Nautilus and Aquanaut.
Rule No.4 - Choose Your Desired Specifications
Within each model, various characteristics differentiate one watch from another. These include the type of metal used, which can range from steel to gold or platinum, as well as the bracelet variations, such as different styles or materials like rubber.
Most importantly, consider the dial variations. When contemplating a watch purchase with future investment potential, pay close attention to the dial, as it is the most unique and sought-after feature.
Popular dials often feature bold colors or rare materials, setting them apart from more conventional counterparts. These distinctive characteristics make them highly desirable to collectors and enthusiasts alike.
Rule No.5 - Always Purchase Something You Like
While it may seem obvious, many individuals find themselves swept up in the allure of luxury watches and make impulsive purchases without considering their personal taste. Investing in a watch that you dislike or find uncomfortable to wear can lead to disappointment and financial loss in the long run.
A final thought
Like all investments, the value of watches can fluctuate, sometimes rising and sometimes falling. It’s essential to understand that while watches can be viewed as long-term investments, conducting thorough research is crucial when purchasing luxury items. Ensuring the legitimacy, authenticity, and solid provenance of the items is advised.
As a watch collector and enthusiast, I’ve come to accept that the value of my collection might not equate to half of what I initially invested in it, and that’s perfectly fine with me. Each watch in my collection holds sentimental value, telling its own unique story of why I acquired it. To me, watches transcend mere investment—they represent a beloved hobby that I share with friends and fellow enthusiasts worldwide.
To help retain your watches value check out our article: 7 tips to retain the value of your luxury watch
Rolex Market Update: Buy, Sell, or Invest? Our Insight.
You might be wondering what's happening in the watch market, and we're here to provide you with the latest market update.
After reaching historic highs in February 2022, we are currently witnessing a significant dip in the prices of preowned watches. While this may prompt some to rush to their safety deposit boxes and consider selling their watches on the open market, it has also created a fantastic opportunity for those who previously saw their dream watches reach astronomical prices, making them unattainable. Now, these watches appear to be more affordable.
So, what's causing this sharp decline?
The cost of living crisis, which has affected the prices of essential goods like food, fuel, and raw materials, combined with the ongoing high levels of inflation, has created the perfect storm for reduced buying activity in the luxury sector. To be clear, people are still buying watches, but they are primarily serious collectors who now see an opportunity to purchase their desired watches at prices at least 25% lower than the highs we witnessed last year.
Is the market currently at its lowest point?
At present, the market seems to have decreased by at least 25%, bringing preowned watch prices for stainless steel models back to what we might consider “normal” levels. By “normal,” we mean prices that reflect a sustainable increase, not below retail.
So, what should you do? Should you buy or sell?
Your decision depends on your current situation. If you bought a watch with the intention of making a quick profit, I must say that this is not an ideal time for you. You may want to consider holding onto your watch or, at worst, selling it promptly.
However, if you are a genuine collector looking to purchase a high-demand watch at a fair market value, there has never been a better time to find the watch you’ve always desired.
What does the future hold for watch investing?
As a watch enthusiast and collector, I would advise against viewing watches solely as commodities to invest in. Instead, I recommend buying a watch that you truly enjoy and love. I predict that the market will continue to grow, albeit not reaching the highs of 2022.
We may see annual growth rates of 5-7% for stainless steel high-demand pieces and around 2-3% for bi-metal pieces. As for solid gold and other precious metal watches, it’s possible that their prices may dip below retail for the foreseeable future.
7 tips to retain the value of your Rolex watch
I know what you are thinking, ‘Rolex watches always retain their value’, and that statement is indeed true, but are there things that could reduce the value of your watch? Yes and here are seven tips to help you retain the value.
Tip 1: Wear your watch frequently
Now, this might come as a surprise but not wearing your watch can affect the movement over time. Think of it like a car sitting on your driveway for 2 months. On the outside, it will look fine but under the bonnet, the lack of mobility will inevitably lead to parts seizing up or failing. We would recommend cycling your watch collection to ensure all your watches get plenty of wrist time to keep the movement active.
Tip 2: Condition is key
While wearing your watch as much as possible is always good, it is always worth trying to avoid potential hazards which could potentially scratch, dent, or break components of your watch. The most common areas for these occurrences are the sapphire crystal face, the side of the lugs, and the clasp. These areas of your watch are normally close to table edges, door handles, and sometimes concrete floors. And while it is not the end of the world if you do scratch your watch, it will cost up to £200 to get it polished and back to looking new again.
We would recommend keeping one of our Clam Single Watch Travel Cases with you just in case you are doing anything that might cause you to damage your watch or if you need to secure your watch while in storage.
Tip 3: Keep everything that came with the watch
This might seem like an obvious tip, but you will be surprised at how many people throw away the box, receipt, and even the paperwork for the watch. But if a secondary market dealer was to tell you that the box, papers, and purchase receipt could be worth 10-20% of the value of the watch, you would defiantly think differently!
This is why we would recommend you keep hold of everything that comes with your watch which would normally consist of:
- The Watch (Obviously)
- Green Presentation Box (with cushion)
- Cream outer Box
- White sleeve with sticker
- White hangtag
- Green certified tag
- All links (If any are removed from the watch)
- Bezel protector (Sometimes these are excluded)
- Rolex manual
- The warranty card with the Rolex green wallet
- Original Purchase Receipt
Tip 4: Keep it original
Another tip that might be obvious to the seasoned collector but keeping your watch original is vital to value retention.
When we say ‘original’ a secondary market dealer would say ‘factory’. This would mean that all parts of the watch including the bracelet, dial, and hands remain with the watch even if it goes in for a service. Rolex has been known to replace dials, bezel inserts, and original bracelets on vintage models when they come in for a service. While it is nice to have something new and, in most cases, improved on your watch after a service, collectors go mad for original parts even if they are heavily worn.
So, if the watch does go in for a service, be sure to keep all original parts for your watch. This will increase the value by a possible 30% on certain models.
Tip 5: Stay away from aftermarket
Very similar to tip number 4, we would recommend staying clear of anything that is considered aftermarket. This includes adding gems to the watch by drilling holes into the metal itself. Other things we would recommend staying clear from are after-market bezels or dials. While these are not permanent, they are unnecessary and will require you to keep hold of the original parts later.
Tip 6: Beware of water damage
One of the costliest repairs for any Rolex watch is the frequent mistake to not screw the crown down properly before entering the water. I have unfortunately seen many watches that have had water creep into the movement and to put it simply, water and oil do not mix at all. This will lead to an extensive repair cost of around 7-10% of the value of the watch.
Tip 7: Don’t over-polish your watch!
As mentioned in tip number 2, a professional polish can cost between £100-£200 (depending on the metal), and frequent polish can create a domed mirror effect instead of a flat mirror effect. This is one of the few ways you can tell a watch has been over-polished or not polished correctly.
Another unfortunate outcome of amateur polishing is rounding the edges of the lugs. Some secondary market dealers would refer to the watch as being ‘sharp’. This generally means that the edges of the watch are sharp and have either not been polished or had a professional polish.
It’s hard to say if polishing affects the value as some buyers like their watch looking new, however, depending on the model and age, we would advise asking a second opinion before polishing your watch.
In conclusion
The general rule of thumb is to enjoy your watch but be mindful that keeping it in great condition will help you reduce any potential costs later on. After all, no one likes unexpected services or costly repair bills so by following these 7 tips you should be able to keep your watch in top condition for yourself to enjoy or move on to the next potential owner.