Will Rolex prices keep going up? 

 

“Yes” is the quick and easy answer you’re hoping for!  Every year, Rolex tends to raise their prices in keeping with the cost of living and raised cost of raw materials.  Demand plays a large part in this decision too - the higher the demand, the higher the price raise. Pre-owned prices rise in tandem with new retail as a reflection of what’s in demand and the price of the materials. 

 

Price rise in 2022

 

In January 2022, Rolex increased its prices by an average of 3.4%.  Some references have gone up over 10% while others have only raised a tad or held stead. This is going to have a knock-on effect on the prices of pre-owned watches which will also see an increase in price especially for the most sought after models. 

The Submariner, Daytona and the GMT Master II saw the highest increases with stainless steel Submariner Reference 124060 going from USD $8,100 to USD $8,950 - a 10.5% increase in the retail price. 

 

                                                                                   

 

Why do Rolex retail prices increase? 

 

High demand 

One major reason for price increases is the ever-increasing demand  for Rolex watches which seems unlikely to stop any time soon.  Looking at the history of prices, it seems likely this trend of raising prices will keep going with the less sought-after references holding steady in the worst case scenario.  

 

Price of raw materials 

Prices reflect the increased difficulty and escalating prices charged to obtain the raw materials that go into making the timepieces.  Steel, gold and platinum are the main raw materials in Rolex watches and so the prices reflect the market value.   

Rolex will never lower the quality of their raw materials and pay top price for the best, which is reflected in the retail price.  

 

Technical upgrades 

Rolex are constantly improving their watch movement and durability.  For instance, the Submariner was first introduced in 1953 and was waterproof to a depth of 100 metres.  It was an amazing achievement in those days, however, since then, the watch has been improved to be waterproof to an amazing 300 metres.  

The latest version of the Sky Dweller boasts a movement calibre 9001.  It has a blue Parachrom hairspring in an exclusive paramagnetic alloy that makes it up to 10 times more precise than a traditional hairspring.  Like the Submarine, it too is waterproof to a depth of 100 metres.  It has a self-winding module via a Perpetual rotor and an impressive power reserve of approximately 72 hours.  

 

Staffing  

In 2020/21 the effects of the pandemic slowed down the production process due to factory closures and staffing shortages - already affected by the difficulty of finding skilled watch-makers - and reduced working time.  Like so many businesses, two years on, the after-effects are ongoing and the price increase reflects these problems as necessary reasons to inevitably increase the retail prices. 

Rolex invests heavily in education both in Switzerland and the USA.  Their future depends on it.  They offer watchmaking apprenticeships in Geneva and Bienne, ensuring that their will be further generations of skilled watchmakers and therefore ensuring not only future designs and technology in their watches, but a staff who are able to repair and service vintage timepieces with the expertise and care they require.

 

Price increases in pre-owned watches

 

It follows that the increase in retail prices pushes up the price of pre-owned watches as they become highly desirable and yet more difficult to find.  This is great news for the owners of the models that are now so hard to come by.  Their only dilemma is going to be - cash in now or hold on to see if the prices keep on rising. A tricky decision to make, but a nice situation to be in! 

If you are wanting to get in on the market, this is frustrating as with every price hike, you know you are going to have to pay more.  However, the good news is that as a new owner, you are likely to retain your investment value at the least, and very likely increase it over time.  If you’d like to find a certain pre-owned Rolex, contact Chrono Hunter for help to locate the right timepiece at the best price. 

 

                                                                                                               

 

What makes Rolex so special? 

 

Uniqueness 

Every single Rolex watch has a unique serial number engraved on the six-O’clock side of the case. This means every single watch has its own history and value. As Rolex only produces a limited number of each reference, the watches already in existence become highly sought after.  The more difficult it becomes to hunt down a certain reference, the more collectors will pay for it.  Certain stainless steel sports references  - Daytona, GMT Master and Submariner are particularly difficult to find and acquire. Considering Rolex produces around one million watches a year, this is quite impressive.  

 

Rolex puts quality first 

Because Rolex prides itself on its incredibly high quality at every stage of the watch-making process, they are not increasing production to meet the demand for these highly sought after models.  Rather, they are retaining their normal speed of production in order to meet their own very high standards.  

Some have accused them of keeping production down to drive desirability and prices ever higher, but this is not the case. They have made it clear that keeping to their normal production schedule is not to increase their desirability or price, but to maintain their integrity and quality. 

 

Is buying a Rolex a good investment? 

 

Pre-owned market 

Historically speaking, yes.  For those hoping to get into the watch investment market, it’s frustrating to see the prices going up on the model you’d like to own - but you can’t find one available to buy.  If you’re looking for a good investment, get in touch with Chrono Hunter to see what’s available and get professional advice. 

 

Brand new market 

Buying a brand new Rolex will cost you less than buying pre-owned.  However, getting hold of certain new references can be difficult.  If you can get one, it’s likely to be worth more than you paid for it  the minute you leave the shop.  If you were able to buy one of the steel sports models brand new from a retailer, it would likely be worth anything up to 200% of what you just paid.  If only there was a shop that had some in stock! 

 

Protect your investment 

The condition of your watch - or the one you’re considering buying, is critical to its value. If there’s a lot of wear and tear, damage, or parts are not working properly, this will greatly reduce the value.  If your watch is in this condition consider having your timepiece serviced professionally by Rolex.  Doing this will cost, but it will be a great investment in the end as it will increase the value of your watch.  

 

                                                                       

Who to buy from?

 

Price rises and product scarcity has opened a marketplace of questionable dealers selling on social media and even from shady offices or coffee shops.  If you are looking to invest, be careful to find a reputable dealer with checkable references with has deep knowledge of the market and access to timepieces through people they know and trust.  Make sure your timepiece comes in excellent condition, preferably with the box and papers. 

Buying from someone you don’t know and who doesn’t have the guarantee of a known company behind them is very risky.  There are stolen goods out there and also some really well-made fakes that even people in the business might find hard to detect.  Buying from a reputable dealer via Chrono Hunter, you can be sure the watch will have been checked from every angle and be in top condition, so you won’t need to worry. 

 

                                                             

 

What’s hot now? 

 

Certain models are always in higher demand than others.  This is sometimes to do with the materials the watches are made of - gold and platinum are obviously going to command higher prices - and sometimes it’s just about the style.  Rolex watches that have been featured in films, for instance the James Bond franchise, have been particularly desirable for a very long time.  

Some of the best references to consider investing in right now are: 

• Stainless Steel Daytona
• GMT Master II
• Rolex Submariner (Kermit)
• Explorer I and II
• Daytona (yellow gold/green dial)
• Oyster Perpetual (pastel dial)
• DateJust (Wimbledon) 
• Date and No Date Submariner 
• Sky Dweller 

 

                                                           

 

Conclusion 

Rolex prices are very likely to keep increasing and this makes buying one as an investment a pretty good idea.  While savings accounts are offering very low interest rates, even if you sign away your money for a 3-year deal, it might be a bigger pay-off to invest in a Rolex watch for a potentially higher return.  

Like any investment, there’s no guarantee that a luxury watch is going to increase in value, but history makes it look like a very good bet.  At their worst, luxury watches generally retain their value.  But of all the luxury brands, very few do it better than Rolex. 

 

Buy Or Sell A Luxury Watch The Smart Way With Chrono Hunter 

If you are considering your new purchase or perhaps the sale of a beloved timepiece don't forget that Chrono Hunter is the smart way to buy or sell a luxury watch.

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