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Gold & Property Gone, Rolex Watches Become High Investment Assets

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Today, there are many ways to invest. In addition to stocks, property and gold,  it turns out that several well-known watch brands are also good for investment because their prices go up from time to time.

According to a recent report by online trading website Bob Watches, Rolex watches are still at the top of the list as the most profitable watches to invest in. Although known as expensive watches, Rolex prices are said to be quite “affordable” compared to other well-known Swiss brands, such as  Audemars Piguet and Patek Philippe.

Rolex produces about a million units annually, according to Forbes, but the brand’s rising popularity has put higher demand for new watches.¬†This condition makes the secondary market for second hand watches also in demand.

Is Rolex investing more expensive than gold and stocks?

Over the past decade, Bob Watches has bought and sold thousands of Rolex watches and uncovered unique facts about the true value of each.

“Rolex has been a good investment over the years, but not like the last five years,” said Bob Watches CEO Paul Altieri.

Sales figures for Rolex show an increase starting in 2017, followed by an even sharper increase in 2020. Now the average Rolex price is more than US$13,000 or almost triple the 2011 average of US$5,000.

While prices have generally been roughly following the performance of the Dow Jones Industrial Average, Rolex has excelled last year.¬†Other investments such as gold and real estate have yet to come close to Rolex’s record.

Despite the fantastic price tag, Altieri says Rolex is a relatively affordable luxury item, especially when compared to other Swiss brands such as Audemars Piguet and Patek Philippe, which usually retail for US$30,000.

The closest Rolex offer to this price level is the Cosmograph Daytona, which is now worth more than US$31,000 on average on the secondary market. 

“Before you leave the shop, it’s already two or three times what you paid for,” says Altieri.

Currently, the total value of the second-hand luxury watch market is estimated at US$20 billion, according to a report from McKinsey, and is expected to reach US$29 billion by 2025.

Source : cnbcindonesiacom

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