Are you thinking about decorating your wrist with a new Rolex watch? If you’ve ever considered making this important investment, now is the time. There’s no denying that we’re living through an unprecedented era. As we all learn to navigate the post-pandemic world, economic conditions are shaky and unpredictable at best. Where and how you spend your money is more important than ever before, and a Rolex is a great place to start.
Today, we’re sharing why this is a great time to buy a Rolex, and how to take that first step.
The Inherent Value of a Rolex Watch
When eyeing new jewelry and accessories, you naturally want to look at investments that will appreciate over time. This way, you can make your money work for you.
Do Rolexes appreciate in value? Absolutely. While you might purchase a Rolex for yourself, the reality is that your children and grandchildren will still be enjoying it long after you’re gone.
By then, your watch will be even more valuable and it could even be considered rare. In fact, this is one area in which a Rolex watch truly shines. Anywhere in the world, the Rolex brand carries an excellent reputation, and this is one name that only gets better with age.
Brief History of Rolex Watches
The classic watch company traces its roots all the way back to 1905.
At that time, the branch was called Wilsdorf and Davis. It was founded by Hans Wilsdorf and Alfred Davis in London, England. The very first watch marketed as a Rolex debuted in 1926, and included features that made it both waterproof and dustproof.
It was an inventive and innovative move, setting the foundation for decades of luxury watch designs that would stem from it. However, unlike many flash-in-the-pan models, an authentic Rolex watch remains as special and valuable today as it was nearly a century ago.
Let’s take a look at a few reasons why these particular wristwatches continue to command top dollar.
Intricate Inner Details
If you’ve ever watched a professional watchmaker take apart a Rolex watch, then you know how intricate its inner workings are. This isn’t some ordinary, inexpensive accessory you’d find at your local big-box store.
Rather, it showcases a sophisticated, expertly crafted design. Inside each watch, you’ll find hundreds of different, working parts. Each part has its own special role, and they all work together to create one of the most accurate, reliable tools on the planet.
The parts used to construct a Rolex watch are premium quality, which will come with a higher price tag than a bargain model. This includes 904L steel, which is used in many of the brand’s elegant watches. You’ll also find expensive touches such as white gold and ceramic bezels, all of which work together to create a one-of-a-kind accessory that everyone wants to wear.
Plus, Rolex also pays more for the equipment used to construct these watches, including minuscule (yet critical) tools like electron microscopes.
Adding to the overall Rolex value is the fact that these mechanical watches take an incredible number of hours to produce. They require the attention of skilled engineers and developers who are at the top of their trade. Understandably, these experts aren’t inexpensive to hire.
In addition, Rolex also owns and operates several research centers and laboratories. They use these facilities to test out their designs and create new styles for different lines. The brand is always looking for ways to innovate its products and stay ahead of the competition.
Because these parts are so small, it’s also important to understand the amount of testing that goes into their production. Rolex goes to great lengths to optimize assembly and quality assurance processes to ensure that every timepiece is of excellent quality.
Demand Is Up
If you’re thinking about buying a Rolex this year, you’re not alone. As inflation continues to affect prices around the world, those with a penchant for luxury items haven’t slowed their spending. As such, demand continues to skyrocket for these items, making them even more valuable.
One reason that Rolex garners so much attention is that even its highest-priced models are still somewhat more affordable than other leading names in the market, such as Patek Philippe and Audemars Piguet. They’re right in the sweet spot, delivering obvious name recognition at a price point that doesn’t deter motivated buyers.
Because of this rising demand, it has become increasingly difficult to find certain Rolex models. For instance, its stainless steel sports models, such as the Submariners and Explorers, continue to sell out in retail stores. The brand even has waiting lists full of customers who are willing to wait for their preferred model.
This has led to a rise in shoppers looking elsewhere for their accessory needs. While you may not be able to find a brand-new Rolex watch in stores, it can be easier to navigate the pre-owned market, where you can find gently used watches that still look beautiful and work great.
Some of the most popular providers include jewelry wholesalers and pawn shops, which can offer greater access to a wide variety of products without the sky-high sticker price.
A Smart Investment
Even if Rolex watches don’t fit into your personal style aesthetic, it’s still a good idea to buy one if you find it at a great price. This is because Rolex watches become even more valuable in time.
There are several different factors that dictate what a watch can go for, and Rolex lands at the top in terms of overall quality. These factors include:
- Metal type and combination
- Bracelet style
- Bezel style
- Dial design
Put simply, it’s the most well-known watchmaker in the world, and it doesn’t cut corners on design or substance. For that reason, you can feel confident investing in one, even if it’s outside of your comfort zone.
A Rolex purchased today for $12,000 could be worth double that down the road. When you’re ready to cash in on your investment, you can find a reputable local pawn shop to see what it’s worth!
Remember that supply and demand help control the going price for your Rolex. If this current trend continues, Rolexes will become even scarcer throughout the years, which could mean more money in your pocket. If people are unwilling to wait (or pay the list price) for their Rolex, they’ll start scanning their local gold resellers and pawn locations, and your watch could be the one they select.
Inflation Isn’t Slowing Down
Next, let’s talk about inflation.
Every year, the price of luxury watches rises in accordance with the current economic market. This year is no exception, and you’ll see those increases reflected in the average Rolex price. However, it’s important to understand the context.
Key inflation indexes reveal that we’ve reached a staggering 40-year high, with the Personal Consumption Expenditures price index rising by 6.6% in March 2022. This is the highest rate that the index has been since 1982. Not only are we spending more on our personal needs, but energy costs and food prices are also at their tipping points.
This is one of the most important reasons why it’s smart to buy a Rolex now versus waiting. While there might be a financial turnaround in the near future, such a reversal isn’t guaranteed or even feasible at the moment. Rather, it’s expected that the current trend will continue, and prices will only go up from here.
In other words, if a Rolex seems expensive today, think about how much it could cost tomorrow. Couple this inflation with the ongoing product scarcity crisis, and it becomes more clear why you can’t afford to wait.
More Accessible Than Ever
In the past, you might have done a double-take if you spotted a genuine Rolex watch at your local pawn shop. This is because the iconic Rolex designs have been often duplicated, though never fully replicated.
When you shop from an authorized reseller, you can rest assured that you’re always getting a high-quality authentic product. Gone are the days when you had to second-guess your purchase all the way home!
Our team supports more than 500 pawn shops around the country. When you shop at one of our locations, you know that you’ll encounter knowledgeable, professional team members, transparent pricing, and integrity at every turn.
Can’t make it to one of our brick-and-mortar locations? We also make it easy to shop online. Shop our full collection of real Rolex watches in just a few clicks!
Buy a Rolex Online Today
Now that we’ve covered some of the top reasons why it’s smart to buy a Rolex, are you ready to take that next step? To do so, you don’t have to schedule an appointment at a fancy jewelry store. You also don’t have to worry about the effects of sticker shock.
When you shop with us, we make it easy to find authentic jewelry at a great price. In addition to Rolex watches, we also offer a variety of diamond, gold, and silver jewelry pieces. Check out our full inventory online and contact us if you have any questions!