Rolex Investment

Vintage Rolex Discussion

Rolex Investment

Joined: July 19th, 2012, 7:02 am

July 23rd, 2012, 5:12 am #1

I would be interested to hear what people feel are some of the best "investments" when buying a vintage Rolex watch? I am a collector of rare Modern Chinese coins and I know there are certain coins that are fairly priced, over priced, and under priced. I would like to wear the watches I buy, but also see my investment grow in value. There is so much to like, Red Submariners, 5512, and 5513 series, and others. There is an old adage in collecting to buy what you like but sometimes it is good to understand value too. If there is an article or blog on the subject of Rolex watch investment maybe someone can direct me to that with a link.
Aloha, Jim
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Joined: May 28th, 2007, 5:43 pm

July 23rd, 2012, 5:22 am #2

"what is hip today...might become passe...."
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Joined: July 19th, 2012, 7:02 am

July 23rd, 2012, 5:55 am #3

I don't know those gentlemen but they are words of wisdom. Therefore it might be wise to buy what is under valued or under owned at the time but has good rarity value. As a sage real estate investor said, "Don't buy land where people are now, buy land where people are moving to, then sell it to them".
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Joined: February 22nd, 2012, 8:12 am

July 23rd, 2012, 6:10 am #4

Just start with 2

Seriously now hope u at least had a smile , I don't any any quick quotes or analogies but , find what u like , what sings to you , then buy the best example you can find , with luck it may appreciate , if not then u still have something on your wrist to smile at , I do understand what your saying but , sure some watches bought in 2000 have exploded in values , some 10X but when they were bought that wasn't known , and probably not considered , without a crystal ball who can say for sure , in the 80's chrono's were not that desirable , now ? It's CRAZY !! But had they known that in the 80's ... Well I think u can see the point ??

I'd suggest fwiw imho look for a really nice early 5513 , u can't go wrong

Cheers & Good Hunting
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Joined: August 14th, 2003, 3:20 pm

July 23rd, 2012, 7:13 am #5

I would be interested to hear what people feel are some of the best "investments" when buying a vintage Rolex watch? I am a collector of rare Modern Chinese coins and I know there are certain coins that are fairly priced, over priced, and under priced. I would like to wear the watches I buy, but also see my investment grow in value. There is so much to like, Red Submariners, 5512, and 5513 series, and others. There is an old adage in collecting to buy what you like but sometimes it is good to understand value too. If there is an article or blog on the subject of Rolex watch investment maybe someone can direct me to that with a link.
Aloha, Jim
it will be worth maybe $2000 (because I just marked it up $11000). Do not buy Rolexes unless you are in love with them and plan to wear them. The best way to know what they are worth is to try to sell one. Pawn shops usually buy at good prices...take a watch to a pawn shop and see what they'll offer you for it...and that is the price you should be buying at if you want to go into the watch business. There has already been a giant jump in prices of 18k watches and even more in bracelets...so that ship has sailed.

As for real estate...don't buy where everyone is moving to, somebody already owns those properties. You want to buy where everyone is leaving...running from. Those are the house you will be able to pick up cheap and make rental money on. And you want to heavily leverage your money...borrow as much as you can on the house at the lowest rates you can get. That way your net income should be between 5 and 8 percent after all costs. If you bought a $100,000 property with 10% down and you netted 6% (six thousand dollars per year)...that is a great return on your $10,000 down payment. The market value of the property could fall another 30% and you still are making great money on your $10,000.

Back to watches...do it for fun and you'll never lose money...and you'll have fun.

John Ireland
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Joined: October 29th, 2006, 10:37 am

July 23rd, 2012, 7:48 am #6

I would be interested to hear what people feel are some of the best "investments" when buying a vintage Rolex watch? I am a collector of rare Modern Chinese coins and I know there are certain coins that are fairly priced, over priced, and under priced. I would like to wear the watches I buy, but also see my investment grow in value. There is so much to like, Red Submariners, 5512, and 5513 series, and others. There is an old adage in collecting to buy what you like but sometimes it is good to understand value too. If there is an article or blog on the subject of Rolex watch investment maybe someone can direct me to that with a link.
Aloha, Jim
If you are buying for the joy of ownership, then purchase only what you like and then hold it for as long as that fulfillment outweighs the money you can sell it for. Stick to that and you'll enjoy the hobby and have no stress about values.

If you are buying purely for financial gain then buying a vintage Rolex is no longer the safe punt it was a few years ago when values were being exponentially pushed up by dealer spreads making it safe for all. Unfortunately/fortunately that game of musical chairs/pass the parcel has come to an end. Some are stuck with a parcel they can't pass on and some who would like to take it no longer have a chair with which to sit.... that was the way the cooky crumbled!

For as long as the world is stuck in this spiraling shitty financial situation and the future of economies & currencies remains uncertain there is no safe ownership price let alone safe investment. If you are just trying to buy low and sell high then I would advise you to leave watches well alone. Unless you are a knowledgable and connected dealer with a wealthy client base to call on then they are not a good financial investment any more.

Just my 2cents

Steve

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Joined: May 28th, 2007, 5:43 pm

July 23rd, 2012, 8:34 am #7

I don't know those gentlemen but they are words of wisdom. Therefore it might be wise to buy what is under valued or under owned at the time but has good rarity value. As a sage real estate investor said, "Don't buy land where people are now, buy land where people are moving to, then sell it to them".
15 years ago...you could buy a 6538 for less than 5 grand. the same watch might cost more than 50 grand now. A brilliant example with provenance...whatever the market will bare.

A 6541 milgauss same but more.

Double Red Sea Dwellers and 1665's in general went very high...now they are not so high comparatively.

Chronographs are the rage...will that continue? Maybe...

Bubblebacks were very popular and pricey at one time. The demand is not as high and the prices are not as solid unless the piece is exceptional.


Buy what you like and buy originality and condition and provenance. Dial is everything. Case thickness is everything.

What is uncommon.....is not always worth more but it can be.

It is about like gambling. And just remember...there is always a better one.



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Joined: July 9th, 2004, 2:59 pm

July 23rd, 2012, 9:01 am #8

If you are buying for the joy of ownership, then purchase only what you like and then hold it for as long as that fulfillment outweighs the money you can sell it for. Stick to that and you'll enjoy the hobby and have no stress about values.

If you are buying purely for financial gain then buying a vintage Rolex is no longer the safe punt it was a few years ago when values were being exponentially pushed up by dealer spreads making it safe for all. Unfortunately/fortunately that game of musical chairs/pass the parcel has come to an end. Some are stuck with a parcel they can't pass on and some who would like to take it no longer have a chair with which to sit.... that was the way the cooky crumbled!

For as long as the world is stuck in this spiraling shitty financial situation and the future of economies & currencies remains uncertain there is no safe ownership price let alone safe investment. If you are just trying to buy low and sell high then I would advise you to leave watches well alone. Unless you are a knowledgable and connected dealer with a wealthy client base to call on then they are not a good financial investment any more.

Just my 2cents

Steve
to the vintage Rolex market hype.................fortunately Rolex has obliged by raising its prices so that mondane everyday vintage sports watches still feel relatively well 'priced' when compared with the modern equivalent.

It may be a very different 'brave' new world when we eventually come out of this recession and money making markets may not be as plentiful or as socially acceptable as previously as a result of worldwidwe changes in legislation and public opinion.

You can only screw the 'taxpayer' with footing the 'bill' so many times before they bite back.

Usually if you are thinking of investing in a rising market it is usually already 'too' late, it certainly is when everyone knows of the opportunity.

regards

 

John
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Joined: June 11th, 2008, 9:05 pm

July 23rd, 2012, 12:19 pm #9

In 1990 I was involved in a building project that faced some financial trouble. Rather than borrow the 100k that I was short my wife insisted that I sell some of my stuff! So sell I did as the project was rather important. I sold 4 plastic Daytonas for $14,000 ($3500 each) which was way more that my original investment of say $1,000 each.Also a Tiffany Exp. & a 1930's Rolex 14k.tank type dress watch....Along w/ some valuable decoys I raised the necessary money in short order.
As to the investment prowess of vintage Rolex ,you can arrive at your own conclusions, mine if I still had the 6 watches mentioned today's value equals about 5 times my sale of 1990.....
My 401k may be up only about 50% or so......
Regards, mcotter
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Joined: January 28th, 2011, 1:52 am

July 23rd, 2012, 1:01 pm #10

I would be interested to hear what people feel are some of the best "investments" when buying a vintage Rolex watch? I am a collector of rare Modern Chinese coins and I know there are certain coins that are fairly priced, over priced, and under priced. I would like to wear the watches I buy, but also see my investment grow in value. There is so much to like, Red Submariners, 5512, and 5513 series, and others. There is an old adage in collecting to buy what you like but sometimes it is good to understand value too. If there is an article or blog on the subject of Rolex watch investment maybe someone can direct me to that with a link.
Aloha, Jim
As a newcomer to this vintage watch collecting, IMHO I would quantify this as less than 10 years of experience; as I came into this hobby because of the allure of a world famous brand & prestige but I must admit monetary returns were one of it at first.

However, over the short time I had in this hobby I have learnt to put my monies in my passion for such historical vintage pieces rather for investments. It's the joys & disappointments I made with my purchases, up & downs of owning so called rare full sets and the valuable knowledge I acquire from VRF, members, comrades and dealers some who I have called as friends. This is an investment to me IMO.

I am in that school that there are 2 distinct markets here for vintage watches - mass market & special / rare examples. I have learnt from some top notch collectors to go for the best examples you can afford regardless of the neither makes nor models - after you do your homework & financial planning. I am for that latter market for a good chance of ROIs if you are in for both passion & pa$$ion.

I like the 1st few replies in this thread to be careful of "trend" buying that might turn into "passé" paper loss. I prefer to buy for the love / interest / passion of the watches. I am always wary of people hyping the so called trendy watch to have now for "investment" like the same caution when my financial planners approached me to switch mutual funds with their "hyperbole"

NO, I would not treat my watches as investment grade yet as it is a hobby BUT an exotic alternative fund allocation or diversification, YES. (that's the BS I have learnt to use from my financial advisors) LOL!!!

Caveat Emptor!

This is the one & only souvenir I bought from Amsterdam and had on my study desk to keep me sane from the crazy world of mass herd mentality & make a quick buck commoditisation of anything that is "in"



No, I am not that wolf who cried the grapes are sour because the BCs / PNs / MILs etc are beyond my reach. Yes, I am envious those who had owned these a long time ago at a fraction of the price but happy for the privileged few that are enjoying passion + paper gains on their watches

Good luck Jim in your chase and hope to see you more here on VRF.

Cheers!
Last edited by LunetteVerde on July 23rd, 2012, 1:06 pm, edited 1 time in total.
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