Why is Rolex Becoming Even More Expensive?
If you’ve been thinking about investing in a Rolex watch, there’s something that you may have noticed. The cost for new as well as used Rolex watches continues to increase over time. On the one hand, this is no surprise. At the same time, you do wonder about the amount of that increase.
What’s going on with the market right now? Why are Rolex watches very expensive? The fact is that there isn’t any one factor driving the change in pricing. Here are a few basics that will help you understand what’s happening with prices and why.
Quality Without Compromise
Before any talk about pricing begins, it’s a good idea to have some context. One of the reasons that Rolex is one of the world’s most popular and valued brands is the high quality that’s required of every watch. Nothing leaves the factory unless it meets stringent production and performance standards.
This has led to only a limited number of watches being produced per year. It’s also meant developing a network of authorized personnel who are trained on how to provide care for Rolex watches of all types. Even after the production is complete, the emphasis on quality continues for as long as a watch exists. That’s not something you will find with mass-produced timepieces.
Understanding the Market for Rolex Watches Over the Last Few Years
If someone should ask you if Rolex prices increase, it’s easy to answer in the affirmative. To some degree, they’ve always increased over time. This is actually a good thing, since the watches do appreciate in value. That’s one of the reasons why they make such a good investment.
When someone is asking if Rolex prices have increased, what they are likely asking is have the prices increased more than usual. Could it be that something is driving the cost upward outside of the usual factors? An analysis of Rolex pricing for new and the more popular vintage models confirms that something is a little different than in decades past.
What’s Contributing to the Shift in New and Used Rolex Prices?
You look around the market and there seems to be more than one thing happening with the pricing on Rolex watches. There’s no doubt that new ones are more expensive than before. According to Professional Watches, a watch publication based in the United States, 2022 will see a worldwide average increase of 3.4% in the cost of new Rolex watches. In the United States alone, the projected price increase for a new Rolex is 4.2%.
Exactly why Rolex is increasing the pricing on new watches has not been announced. There’s speculation that it has to do with maintaining the quality. The materials used in the creation of the watches are more expensive to prepare and produce. Other shifts in labor and general production costs are also likely factors. In the midst of a worldwide pandemic, many industries are affected by changes in supply chains that make getting what’s needed to continue operations more problematic.
So are Rolex prices going up or down? No doubt the price is up for new Rolex watches. With some older Rolex watches, the pricing seems to be holding steady. Others are increasing slightly, but nothing that’s out of line with previous years. It’s fair to say that the odds of a Rolex watch going down in price is not likely, but the chances for higher pricing is definitely there.
How is It That Some Vintage Rolex Watches Are More Expensive Than New Ones?
Demand versus supply has always been important to the cost of an older Rolex. Simply put, when more people want to buy certain models and there are not that many available, the price will increase accordingly. When the model in question is relatively easy to find, the prices are likely to increase at a slower rate.
Keep in mind that it’s not just about the pricing between different previously owned Rolex watches. You can easily come across vintage watches that are more expensive than the ones that will be released this year. Why are older Rolex watches sometimes more expensive than their new counterparts? That also goes back to demand. A watch that continues to retain its popularity and is in relatively short supply can easily command a price that’s more than something recently produced and released.
Still One of the Best Investments to be Found
Here’s something that you should know about Rolex watches of all types. They are still among the most practical investments that one can make today. Long after the pandemic is over, vintage Rolex watches will keep increasing in value. You can see this with ease, since the demand for Rolex has not decreased even as many other investments have been upended during the last couple of years.
The same is true for the latest Rolex watches to make their way to showrooms. You can bet that the new watches of today will hold their value and that they will increase as time goes on. That’s simply what happens with Rolex watches. As long as you have an authentic Rolex watch, you have an asset that will appreciate as the years pass.
Making Sure That You Getting an Actual Rolex Watch
Whether you want a new or a used Rolex, the goal is to make sure anything that’s considered is the real thing. That’s not as easy as it may seem, since some counterfeits are cleverly designed. Unless you know the brand well, it’s possible to be misled.
One of the easiest ways to avoid this type of situation is to only approach authorized Rolex dealers. It’s not hard to find out who’s an approved dealer and who isn’t. Rolex maintains listings of which dealers have their blessing. No matter where you are in the world, it only takes moments to determine if a sellers is recognized and can offer you real Rolex watches.
While you may be tempted to stray off the path and try a seller who assures you that they are offering the real thing, don’t take the chance. Instead of saving money, you could end up with a fake Rolex that looks good on your wrist but offers little else.
Contact Diamond Source NYC for more information about the highest-quality new and previously owned Rolex watches. You can depend on the staff to provide you with honest and detail information about any watch that you’d like to buy.