DH says I’m ridiculous for wanting to spend this amount of money on a watch, who is BU?

[Halowinslet]

I’ve been lusting after a Rolex datejust for as long as I can remember, but have always stopped myself from buying because there has always been something more ‘sensible’ to do with the money, like keeping it in savings or spending money on an experience like a holiday. This year I’ve been feeling pretty low what with the current situation and there’s no way I’ll be able to go on holiday this year as I’m vulnerable health wise.

Announced to DH this morning that I’m thinking about treating myself to a nice pre owned Rolex (£6k) on the basis that it’s what I’d usually spend on holidays in a year anyway and they hold their value pretty well, in the event that I ever wanted/needed to sell.

DH thinks I’m being absolutely ridiculous spending such a large amount of money on a watch and now I’m wondering whether I’m having a moment of madness. I should point out that the funds would be coming from my own pot of money, rather than joint.

@Strokethefurrywall

It is OPs money because they don’t have children to consider to no need to combine finances (or so I thought).

Yes, everyone I know who has ‘family money’ only did that once children came along and one of them took a massive financial hit. Before we had ds1 it was our own money we shared bills from. But even those who do ‘family money’ still have a personal allocation from that to spend however they wish. It’s disingenuous to say that if you do ‘family money’ then none of it is just for you to spend as you please.

@Verv

This is a good point, but not one that I fully agree with. People have been predicting the bubble bursting and the fall of Rolex for 20 odd years now. It hasn't happened yet. They've also predicted a burst due to covid, and the opposite has happened. The hard luxury market, 75% of which is made up of preowned watch sales has continued to grow.

You're right that not all Rolex are as likely to increase in value as others. The professional steel line is always creeping up. But since the release of (for example) the candy coloured oyster perpetuals which are the base models, the demand has put them far above retail. The market for steel datejusts is also strong because those who can't access the professionals are going for DJs instead. The covid closures and stalled supply of all models have created a situation where most Rolex on the market have inflated quite significantly. I haven't seen a drop yet and wouldn't bet that it will.

Bimetal and "not hot" precious metal models are usually stable but the used market does go up incrementally along with manufacturer price rises.
Womens watches (sub 36mm) are largely exempt from the rocketing market as its the demand for men's watches that is insane as its largely male driven with womens watches being much easier to obtain.
The biggest Rolex manufacture segment is women's datejusts which service the female market in Asia. More of them about, values not as high. Exempt from the buy it and double your money thinking.

I agree that people have been predicting the decline of Rolex for years and it hasn’t yet happened. I though that the pandemic would mean that people would not want to spend on ‘frivolous’ luxury items such as watches, but in fact many shops have said that business has been buoyant.

“But even those who do ‘family money’ still have a personal allocation from that to spend however they wish. It’s disingenuous to say that if you do ‘family money’ then none of it is just for you to spend as you please.”

I don’t have a “personal allocation” from family money; nor do I have personal savings. My husband doesn’t either - are we meant to? I’m not a watch person, but if I really wanted that I’d ask my husband to buy it for me as a gift for a birthday or other occasion. This is how I have acquired various diamond jewellery over the years

OP, stop second-guessing yourself and just get it! Get off MN and down to the Rolex shop or whatever.

I don’t have a “personal allocation” from family money; nor do I have personal savings. My husband doesn’t either - are we meant to?

I was responding to the idea that everyone on MN has only family money. All the many years of advice I have read on here the general consensus is have a family pot but then allocate spends for things like haircuts, going out etc. Which is what everyone I know who does family money does too. It’s obviously all personal and as long as one of you doesn’t take the piss then it doesn’t matter. But personally I like having an amount ring fenced, then I can never feel guilty for buying a handbag or whatever and it means H doesn’t spend it all on himself before I get anything because it’s all technically ‘available’. (H spends all of his on the 1st day of each month then spends the rest of the month working out what he’s going to order on the 1st of the next month!)

Regardless of all this you still have money to spend on yourself? presumably you just don’t separate it out?

If you can afford it then YANBU.
I'm not into watches but DH is and sometimes people notice and compliment on his watch (I cant even remember what sort it is hes had it for years)
Some people spend hundreds or thousands on handbags. Essentially they dont "do" anything different to my £15 canvass handbag from ebay but if they can afford it, (and dont insult my bag!) it's no skin off my nose.

I'm saving for a Patek 🤣 Nah, just kidding, I've got a mortgage I need to pay first.

Definitely go and try it on, though! Let me know if and when you buy it 😄

I agree that people have been predicting the decline of Rolex for years and it hasn’t yet happened.
I though that the pandemic would mean that people would not want to spend on ‘frivolous’ luxury items such as watches, but in fact many shops have said that business has been buoyant.

I work in jewellery (although I dont deal with watches).one customer said his (already very healthy) budget was more than a year ago due to the money he saved.
A lot of people with high disposable income will definitely have saved from cancelled holidays, no events, no eating out, no going to concerts or shows, no commuting costs etc so there are still people with money to spend.

All the ingredients for a bubble then. Plenty of cash looking for good returns, an increased number of buyers, everyone talking the market up.

Nah. If the bubble is going to go it's going to be a drop for the higher end Richard Mille / AP etc.

It’s your money OP but I do think these types of luxury items are a bit ‘emperor’s new clothes’ to be honest. Consumerism at its finest. I can’t really see a major justification for owning one!

Mind you, I’m not a watch or jewellery person. Even insisted on a synthetic diamond for an engagement ring rather than the real thing so maybe I am weird

I don’t understand the perception of why everything must be justified on MN. a watch /bag might go up in its value , or it’s retail might increase in few years and you can sell for the original retail price, this has happened to me , with two bags a Dior book tote that I bought for £1900 and sold recently for exactly 1900

But I never invest in luxury goods , I buy to enjoy them.
Investments is in stocks at least they will yield good dividends .

You could say why stay at a 5* hotel when you could go to travel lodge for a tenth, or even 20th of the price?
Why buy a range rover when you could have a cheaper car?
Why go out to eat at restaurants when it would cost 75% less to make the same meal at home?
Why buy designer clothes when you could go to M and S?
People have different priorities and budgets - life would be pretty boring if everyone just bought absolute necessities, or the cheapest version of everything.

Disclaimer: As I work as a jeweller - it's in my interest for people to buy fancy non essential things!!🤣

@Anonmousse because a 5 hotel experience and a 2 hotel experience are discernably different in terms of quality of food, facilities, ambience, locality, amenities etc. A watch just tells the time and there's no difference between a £10 or £10k watch in that regard.

@Verv

Nah. If the bubble is going to go it's going to be a drop for the higher end Richard Mille / AP etc.

Whilst I still won’t be buying a Rolex, I have enjoyed reading your posts for the insights into the luxury watch market.

[quote Amboseli]**@Anonmousse* because a 5 hotel experience and a 2* hotel experience are discernably different in terms of quality of food, facilities, ambience, locality, amenities etc. A watch just tells the time and there's no difference between a £10 or £10k watch in that regard.[/quote]
This is a good point.

I guess it does depend on the individual though and whether someone thinks it is worth paying the extra.

When it comes to material items, I tend to like to pay for quality where I can but not as much for labels. Although there are exceptions - for example, i recently realised that a ‘designer’ brand of jeans actually fit me very well and are of a very good quality, after being disappointed when getting new pairs from Next (never had a problem with them before but they don’t seem as good now!)

@Anonmoussebecause a 5 hotel experience and a 2 hotel experience are discernably different in terms of quality of food, facilities, ambience, locality, amenities etc. A watch just tells the time and there's no difference between a £10 or £10k watch in that regard.

But if you recognise theres a difference between a 2 and a 5 hotel (essentially both are somewhere you eat and sleep)...why would you not think theres a difference in quality between a £10 and a £10k watch...?
FWIW I dont have a watch worth thousands but I can see why people might think they're an investment if they hold their value (providing you dont get it engraved!)

hulahooper2

Your money , your choice but I would think you were wearing a fake

Why would you assume it's a fake?

^^

Because she's used to seeing people wearing fakes

@Iamthewombat

All the ingredients for a bubble then. Plenty of cash looking for good returns, an increased number of buyers, everyone talking the market up.

Nah, there is a price increase every year, and you cannot get your hands on the real in demand models unless you are in the know. And the watches making the real money wont ever be made again. .

I do agree with Verv about Richard Mille, reminds me of the franc muller moment.

Yeah, just like beanie babies, rare tulip bulbs and shares in the South Sea Company! I think that we will have to agree to disagree on this one.

www.ebay.co.uk/itm/Ty-beanie-babies-very-rare-no-star-on-tush-tag-p-v-c-/154447535652?mkcid=16&mkevt=1&_trksid=p2349624.m2548.l6249&mkrid=710-127635-2958-0

Value of anything is debatable - it’s only worth what someone is willing to pay and that can be very variable
Buy your watch because you want it and will enjoy wearing it
If watches are not your thing then spend your money elsewhere on what pleases you which includes giving it away

The price at which a bean toy sold, in the link you posted, is irrelevant if we don’t know what the seller paid. They might have made a thumping loss if they bought their ‘very rare’ collectible for thousands at the top of the market.

Many people did this in the 1990s: there are barking mad stories of people investing their life savings in flipping beanie babies at the height of the craze because they thought it was impossible to lose money on these supposedly rare items that everyone wanted. There was a story of a divorcing couple in the US who fought over who got the Beanie babies (!) and had to divide them up in front of a judge, then within a year the things were changing hands for less than $1 a go.

Bubbles burst when a critical mass of sellers decide to take profits, driving prices down, which precipitates more selling as others try to sell before prices slide too far.

What applies to bean toys applies to watches. And to cryptocurrencies, if anyone has been following those stories in the news. Any asset where supply is artificially limited and most of the perceived value is in rarity.

That’s why I agree that the OP should only buy the watch if she likes the way it looks, not because people are queuing up to assure her that the value will always rise and that she can’t lose. Clearly that can’t be true, because no asset rises in value inexorably. Not just that, but the positive sentiment around certain watch models means that the prices are probably over the top already.

The beanie baby thing was hilarious. Shops putting up hand written signs that We Are Out of Beanie Babies as part of the marketing strategy and so many people fell for it.

I think just go and try it on then leave it for a week before you decide (you’ll either not be bothered and forget about it or not be able to stop thinking about it).

I personally wouldn’t but then I don’t care about fancy watches. It really does all depend upon your finances and how much this means to you, there is no right or wrong answer assuming you can easily afford it.

[quote m0therofdragons]@verv in no way do I think I’m “edgy” - I have an Apple Watch like most people I know. What a bizarre attempt at a personal attack. I was curious as I do love jewellery so thought maybe Rolex have a different look to a normal watch that sets them out so I googled it. Yes it was not the best use of my time but neither is reading mn threads while chilling in the garden. I’ve learned that I still don’t get the love of Rolex. Not sure why that makes you so prickly. [/quote]
That’s not a particularly nice example to be fair. I have a Rolex. I’ve had it 10 years. ITs worth more now than than when we bought it. More importantly though I love it, it’s very pretty, nothing like the one in the picture. They aren’t for everyone. I wouldn’t spend thousands on a holiday but many people do every year.