4 Factors You Should Consider Before You Invest In A Rolex Watch

Even amongst luxury watches, Rolex commands reasonably limited and have earned a reputation of not just being a status symbol but also of being an investment. Rolex's long heritage, excellent craftsmanship, and delightful aesthetics have accumulated over the years to build a brand that is constantly on the attract collectors of all ages. Amazon rolex are known to hold their value, often even appreciating in value, partly due to the strict price controls, limited production and strong brand equity.

Before you start the first investment in Rolex watches, here are 4 factors you should think about before making your first purchase.

#1 Select a Classic Watch Design

Among the offerings from Rolex, the two most classic and popular models are the Rolex Submariner and GMT Master. These watches are well-liked by women and men and feature a timeless design clad in stainless or other metals. These types of watches retain their value perfectly and can even appreciate with time, making it a worthy investment. For example, a Rolex Submariner in 2010 retails at approximately US$7,375 from official channels. Fast forward to 2021, the official retail price of the identical model of watches is now US$9,500.

Despite some variants contain expensive metals, special leather straps or perhaps gemstones which are mostly found on women's watches, timepieces produced from higher quality materials such as white gold or diamonds may not be well worth the high cost. While these variants look more attractive, they are also priced higher. Unless your watch holds a distinctive collection value such as a special background or limited production, buying a Rolex watch with a steep cost will not only deter casual buyers from buying your watch, it may not be attractive enough to attract the attention of potential collectors.

#2 Look out for Reference Numbers

The Reference Number is used to describe the model, production year and also the material that it is made of. Two watches under the same series can sound the same but can differ greatly in value.

Take the Rolex Submariner for instance. A Rolex Submariner with the Reference Quantity of 6538 (made in the year 1957) was auctioned by Phillips for any record-breaking US$567,000. In contrast, a Rolex Submariner with the Reference Number of 16613 (made from the entire year 2006 to 2007) is just worth US$12,000 to US$24,000 in the resale market.

The price difference from different Reference Numbers can be attributed to the scarcity from the watch and any historical affiliation using the watch, such as a military background or unique partnerships.

#3 Pay Attention To The Colour Scheme

Despite having the same reference number, series and material, the need for watches can still differ because of different colour schemes. Over the past century, the Rolex GMT-Master in “Pepsi” (Blue and Red dual colour) bezel was iconic, being bold among other variants of different colours. The collectable value is partly attributed to the fact that it was developed by Pan Am, America's largest airline from the last century.

Today, the Rolex GMT-Master 16750 using the “Pepsi” bezel fetches a resale value from US$12,995, when compared to same model with an all-black bezel which starts from US$9,795.

#4 Be familiar with Condition And Defects

The condition of the Rolex timepiece can affect the need for your watch depending on the age of your watch. In the case of older Rolex GMT-Master 16750 in “Pepsi” bezel, the color of the bezel would fade over time, resulting in a special pinkish and light blue colour. Surprisingly, such models can handle fetching a higher value as collectors appreciate the vintage unique colour of the timepiece.

In contrast, for any Rolex bought in recent years, scratches and faded colours won't be viewed as a sign of authenticity but seen as defects caused by wear and tear, which may cause the value of the watch to depreciate.

While the classic Amazon rolex such as the GMT Master and Submariner can retain their value very well, the condition of the watch coupled with the reference number of the watch can make a difference in the resale value. While older watches that show signs of ageing may not affect its resale value (and may increase it in some select cases), it's not a wise choice to leave scratches around the new Rolex that you intend to purchase.

As with any investment, there are risks involved. Unless you are a wrist watch enthusiast and have accumulated substantial understanding of the watches and their potential resale value, buying a Rolex watch as an investment may not materialise in a gain.

Instead, if you buy a Rolex piece in appreciation of its craftsmanship and brand heritage, you'll be rewarded with the satisfaction of owning a piece of Rolex history (and potentially a pleasant surprise if it appreciates in value later on).