Did you know that buying a Rolex today is more profitable than investing in gold?

Why Investing in a Rolex Might Be Better Than Gold

When it comes to safe investments, gold is often the first option that comes to mind.
However, purchasing a Rolex watch today may be more profitable than investing in gold.
High-profile figures like Fedez, Marracash, Jennifer Lopez, or the Dalai Lama own at least one Rolex, turning these iconic timepieces into symbols of success and prestige, as well as wise choices for those seeking alternatives to gold.

Reasons Why a Rolex is a Better Investment Than Gold

In the world of luxury investments, Rolex watches have proven to be more stable than other valuable assets such as jewelry, handbags, art, and furniture.
With a Compound Annual Growth Rate (CAGR) of 3.4% and a projected market value of over $7 billion by 2032, according to Watches of Switzerland’s annual report, Rolexes show a consistent appreciation over time.
This growth rate not only highlights the brand’s stability but also the increasing demand for these timepieces.
Watches of Switzerland states: “The overall market demand for Swiss watches outstrips production levels and supply.
Customers continue to show interest in key products.”

The global market for pre-owned luxury watches was valued at $11.94 billion in 2023 and is expected to reach $32.05 billion by 2032, with an 11.6% CAGR from 2024 to 2032.
This data not only demonstrates the popularity of Rolex watches but also their ability to maintain and increase value over time.

A key element that makes Rolex watches such an attractive investment is their rarity and the brand’s intrinsic value.
Limited production, combined with high demand, creates a favorable market dynamic for the appreciation of watch value.
Unlike gold, which can be subject to price fluctuations influenced by global geopolitical and economic factors, Rolexes benefit from a perception of prestige and desirability that transcends market conditions.
Furthermore, with recent trends showing an increase in demand from collectors and investors, owning a Rolex translates into a status symbol with lasting economic value.

The Luxury Watch Market and Rolex

The luxury watch market is rapidly expanding, driven by digital platforms such as WatchBox, Chrono24, and Watchfinder, which are broadening access to these precious timepieces, especially among Generation Z and Millennial buyers.
By 2026, online sales are expected to represent 60% of the second-hand luxury watch market, nearly surpassing traditional auctions.
This growing demand and ease of access make Rolex watches an increasingly appealing investment.

The expansion of the online market has revolutionized how luxury watches are bought and sold.
Increased price transparency, access to a wide range of models, and detailed information availability have made Rolexes more accessible to investors.
Additionally, the growth of digital platforms has increased liquidity in the second-hand watch market, enhancing the ability to resell at competitive prices.
The rising popularity of Rolex watches among younger generations signals a positive outlook for the brand’s future, ensuring continuous and sustainable demand.

Rolex’s Pricing Strategy and Market Position

In recent years, Rolex has strategically implemented price increases for its precious metal models.
For instance, in the UK, prices have risen by 4% both in January and June.
These increases, justified by the rise in gold prices, have not deterred buyers but rather confirmed the resilience of demand.
Rolex’s ability to adapt to economic and market conditions while maintaining an aura of exclusivity has solidified its leadership position in the luxury watch industry.

According to Morgan Stanley, Rolex sold 1.24 million watches in 2023, compared to approximately 810,000 in 2019, marking a 53% increase and an 8.8% CAGR.
The construction of a new factory, operational from 2029 with temporary facilities available by 2025, is expected to significantly increase production capacity.
However, the luxury strategy dictates that supply grow more slowly than demand, thus maintaining the high quality and exclusivity that define the Rolex brand.

Conclusions

Investing in a Rolex today may be more advantageous than investing in gold, thanks to growing demand, value stability, and the brand’s ability to adapt to market dynamics.
Rolex watches not only represent a symbol of prestige but also offer a solid investment opportunity with long-term appreciation prospects.
With a continuously expanding luxury watch market and demand surpassing supply, Rolexes prove to be a wise choice for those seeking alternatives to gold.