Rolex as Investment
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  1. #1
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    Rolex as Investment

    First off, I don't think buying Rolexes or most any watches (save maybe really unique/historical models) are "good" investments. I'm sure a basic Vanguard index fund would far out perform the value of a Rolex over time. But, my question gets more to whether buying a Rolex is better investment than simply keeping cash in the bank? Right now you'd be lucky to get one percent interest on most bank accounts, and much likely a lot lower. Would most Rolexes gain at least one percent in value a year over time?

    To be even more specific, if I bought a $5,000 vintage Submariner today and also put $5,000 in the bank, which would be worth more in 10 years?

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    Re: Rolex as Investment

    Sub will perform better than no interest checking account.
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    Re: Rolex as Investment

    I'm having a problem tuning my crystal ball these days. It keeps coming back with, "Ask again later".
    svorkoetter likes this.

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    Re: Rolex as Investment

    Quote Originally Posted by Bodhi6 View Post
    First off, I don't think buying Rolexes or most any watches (save maybe really unique/historical models) are "good" investments. I'm sure a basic Vanguard index fund would far out perform the value of a Rolex over time. But, my question gets more to whether buying a Rolex is better investment than simply keeping cash in the bank? Right now you'd be lucky to get one percent interest on most bank accounts, and much likely a lot lower. Would most Rolexes gain at least one percent in value a year over time?
    No. Rolex may gain value over time, but it is not liquid. If you need the cash now for an emergency, bank account is better. Even a money market fund would more liquid than trying to put up a rolex and sell it. watches are not investments. You can't eat them. You can buy groceries or pay bills with them. You can't put your kids through college with them. They are not CDIC or FDIC insured.
    Perseverence likes this.

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    Re: Rolex as Investment

    Quote Originally Posted by edhchoe View Post
    Sub will perform better than no interest checking account.
    Just look at 2007 submariner prices. How much were they new in 2007?

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    Quote Originally Posted by edhchoe View Post
    Quote Originally Posted by edhchoe View Post
    Sub will perform better than no interest checking account.
    Just look at 2007 submariner prices. How much were they new in 2007?
    I'll try to do that research tonight.

    And I do realize the value of things can change over time, i.e. Rolex might fall out of fashion in 10 years and resale values drop off a cliff. But I'm assuming things will remain fairly steady, as there doesn't seem to be major indicators otherwise that I know of.

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    Re: Rolex as Investment

    Quote Originally Posted by Bodhi6 View Post
    First off, I don't think buying Rolexes or most any watches (save maybe really unique/historical models) are "good" investments. I'm sure a basic Vanguard index fund would far out perform the value of a Rolex over time. But, my question gets more to whether buying a Rolex is better investment than simply keeping cash in the bank? Right now you'd be lucky to get one percent interest on most bank accounts, and much likely a lot lower. Would most Rolexes gain at least one percent in value a year over time?

    To be even more specific, if I bought a $5,000 vintage Submariner today and also put $5,000 in the bank, which would be worth more in 10 years?
    In one hand you claim to know about the vanguard fund and in the other you say "keep cash on hand"?????????

    Who the hell keeps idle cash?


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    Re: Rolex as Investment

    Impossible to predict. A Rolex should appreciate in value over time, but the Vanguard Fund will probably do better. If I was a betting man, I would buy the watch to wear and the fund to invest.
    If you don't think every day is a good day, just try missing one. ~Cavett Robert

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    Re: Rolex as Investment

    The vintage Sub will probably be worth more in 10 years....but who really knows right? Watches are not good investments for sure, but at least with Rolex, you probably won't be out too much money compared to other brands if you wanted to sell it later on.

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    Re: Rolex as Investment

    Rolex watches are luxury goods (e.g. consumer discretionary items). If the economy is growing, their values will increase, if the economy is in a recession, the prices drop very quickly. In 2007-2009, during the peak of the economic recession, I saw pre-owned 16610LV's (green bezel Subs) selling at "fire sale" prices, around 3.7K-4.2K USD. Owners needed to sell them to raise $$$ for other necessities. A lot depends on when you buy or sell, as with anything you would buy for potential appreciation.
    If you don't think every day is a good day, just try missing one. ~Cavett Robert

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