Any Rolex owners on here...

[Missatkins]

My other half has £30,000 to invest but obviously with interest rates so low he doesn't want to just put it in the bank. We're wondering if a rolex would be a good investment? Does anyone have any knowledge of this? Thanks in advance.

Would depend on the Rolex. Make sure you do your research.

@Karatema

Would depend on the Rolex. Make sure you do your research.

Thanks for your response. He'd be open to suggestions with regards to the model of the Rolex. He doesn't expect any increase in value to be significant, but nor does he want it to devalue.

There are other watch brands that hold their value better than a new rolex, and buying a more vintage one would come with a hefty premium i think. And there will always be the temptation to wear it, and when it gets scratched...

If he doesnt want it in the bank, or to invest it properly, he could buy 92 gold sovereigns from a bullion dealer and enjoy looking at them. It is quite satisfying.

No. A Rolex is not a good investment. A watch that would hold its value or be more valuable would cost way more than £30k and even then it's risky. Jewelry and watches are a terrible investment. It's not an investment actually just another depreciating luxury item like a car. (I used to own a jewelry store).

Even if the value doesn't drop, or even appreciates, there would be a cost of ownership, in terms of insurance, secure storage and regular servicing, that would significantly eat into any profits.

Plus it's not a liquid asset, you might need to wait to sell at a profit, and if there's a general downturn in the economy, there's probably going to be fewer people wanting to spend tens of thousands on a watch.

For someone with £30k to invest, they'd need to think about how long they can tie the money up. Putting the money into a pension, stocks and shares ISA, paying off debt like a mortgage, or even premium bonds or cash savings might be more appropriate than speculating on a Rolex or other fancy watch.

He might find the investing flowchart useful

i.pinimg.com/originals/cc/12/d1/cc12d18efca0ed2f2993098b5141f415.jpg

We put 10k in shares in March 2020 and 10k in ETFs last November.

The shares are now worth 19k and the ETFs 13k.

Ok we bought in a bear market, but we’ve been very pleased with the returns.

Rolex is a ten a Penny brand, not one that will hold value. You need to research to find the best brand for you.

Put it in a vanguard lifestrategy 80 for 5 to 10 years. A rolex is not an investment.

You need an independent financial advisor www.unbiased.co.uk/

Personally I wouldn't invest in a Rolex.

A watch is something you spend money on, not get money from.

Invest it in an actual investment vehicle, preferably a tax efficient one.

Bucking the trend here.

DH bought a Rolex 15 years ago. He paid £3,000 for it.

Recent independent valuation (not for insurance as I know they inflate prices) was £18-20k.

He purchased new. I wish I could recall the model (he’s just left for work) but will ask later. Should also add he wears it every day, during DIY and gardening and pretty much never takes it off and it looks like new.

The one thing I would factor in is servicing as it’s very expensive and has to be sent away to be done.

Vanguard S&S ISA. Ours is performing very well.

@Insertfunnyname - for a “ten a penny brand” it seems remarkably difficult to get hold of any Rolex men’s stainless steel sports watch. You need to be prepared to go on a waiting list. For some models that could take years, for others like the Daytona you may never get hold of one.

If you are able to buy one from Rolex at retail price you can go straight onto a watch marketplace and sell it at a profit, as people are paying hefty premiums for jumping the queue.

Not quite ten a penny then.

Bad investment unless you already have a large and diverse portfolio of shares, art, wine etc

I’d never do this.

Jewellery is never a good investment. You buy it because you love it or want it as an heirloom, not because you want to “store” your money that way.

I’d be terrified it would be lost or stolen personally.

Patek Philippe is a classier less gaudy brand that holds value. They’re called heirloom pieces because they hold their value.

Rolex prices are very high at the moment, not a good time to buy.

Get a second hand one - he'll be much better off doing that

Watches are a risky investment. Buying a new one is a massive gamble on whether or not it will become collectible. Most Rolexes will hold their value fairly well, but they are unlikely to shoot up in value.

If you want a nice watch buy one because you like it and want to wear it, but don’t expect it will go up in value. Otherwise, you’re far better off with conventional investments that will pay a dividend or interest, which a watch won’t.

@Nesbo right well let’s assume then that OP can’t just walk into a shop with his £30k and skip years of waiting lists, buy a watch and then sell it the next day to someone for twice the price!

DP had invested a significant amount of money in Rolex’s.
Predominately because he loves watches and loves Rolex.

All of his Rolex’s have appreciated in value since he bought them, he has a gmt that is worth 4x what he bought it for.

He recently bought an explorer that cost £5k, it appreciated in value by 50% the second he walked out of the Rolex store because they are so in demand.

If you do your research watches, especially Rolex’s, can be a very good investment.

@insertfunnyname - whether he can or not it’s still not exactly a ten a penny brand that won’t hold value though!

If he is prepared to lock it away and just service it from time to time rather than wear it he has a good chance of it increasing in value. Depends on timescales though and storage/maintenance comes with a cost. Like any asset you don’t want to have to sell at a time when the market is weak.

It’s not something I’d chose to do, but if you were bored of traditional assets and wanted a bit of fun/risk it isn’t a crazy idea.

DHhad to go on a waiting list for his, and write a letter detailing his circumstances 😂
And was told it was typically an 18 month wait.

Surprisingly after 6 months he got a call and went ahead with the purchase.

Part of the deal was that the jewellers retained all the paperwork for 2 years ( or may be 12 months ) so that it couldn’t be instantly traded on.

DH thinks he’s made about 3k profit - but who really knows as he’s not tried to sell it.

So, i would say it’s doable but you need to be in it for the long term.

I bought one for 8k 8 years ago that has just been independently valued at 13k. My DH’s IWC had also increased in value since purchase, but not by as much.

Investing in jewelry is a very high risk option, it relies solely on whats called the "bigger fool" theory - that being that someone is willing to pay more for something at some point in the future than you did. You also have the significant risk of damage, theft etc. High end watches need to be serviced which will eat in to your profits.

Owning physical objects as an investment has the issue they can be cyclic/fashionable. long case (grandfather) clocks are good example of this. A few years ago you could pay £1000's for a nice one. But because modern/sleek design is in fashion at the minute theyre almost giving them away now.

If you love watches then buying one and hoping it goes up in value is a reasonable idea as you get the enjoyment of wearing/owning it too.

It's also worth considering the retail values you see on second hand watch reselling sites can be a lot higher than what the owner gets paid.

If you invest in a range of funds you should be able to average a return of 6-10%pa with little effort/risk.