A Rolex more profitable than Real Estate, Gold or Shares?!
Investing in real estate has long been favoured with an average return of less than 4%, but there is a better alternative: investing in Rolex watches. Think of annualized returns of more than 13% per year! Yes, the real estate market is an already proven market with stable returns, equivalent to, say, the Europe50 or the Gold Price. Yet you see that real-estate prices are fluctuating considerably, among other things due to changes in laws and regulations. That is why now is the time to consider alternatives. Let's take a look at the potential of the Pre-Owned Rolex market!
Watches win from the real estate market
We'll kick it off right away: the pre-owned market of luxury watches from Rolex. These watches have experienced an annualized increase of 13.1% per year over the past 10 years. In practice, this means that an investment of, say, €10,000 has already doubled in less than 6 years. That's obviously a gigantic increase, especially if you compare it to real estate, the stock market or the gold price. The market for pre-owned watches will continue to grow in the coming years. Currently, the pre-owned watch market accounts for some €25 billion. The Swiss research firm LuxeConsult expects this market to more than triple to as much as €79 billion by 2033. This alone indicates the enormous potential of this market.
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How to get involved?
The average value in 2011 of a pre-owned Rolex watch was €3,450, while the current average value is €11,800. In this time frame, the price of these watches has jumped over 3 times! By the way, that does not mean that you have to spend a minimum of €15,000 to enter the Rolex investment market, in fact, you can get in for a pre-owned Rolex watch as low as €2,500.
The ROI of the alternatives
Measured over the last ten years, the annualized return on the real estate market in Europe per year has been about (3.3%), which of course is an excellent return when you consider current inflation and potential future inflation in Europe. The gold price has also risen nicely, with an average increase of 3.3% per year. Of course, this is nothing compared to the appreciation of watches over the past few years. Not even the Europe50 can compete with this, with an annualized return of (4.4%) over the past 10 years.
We don't have a crystal ball and always do your own research, but based on this data (*) we can say that the market for pre-owned Rolex watches is significantly more interesting than the real estate market. Especially with legislation constantly changing to thwart pawnbrokers, investing in watches is a good idea. Not only can you enjoy your investment by wearing it, but you can also more easily spread your risk by purchasing multiple models, so you can make a healthy return on average. And that's nice, of course.
Pre-owned Rolex
13,06%
Return of investment Period from 2011 to 2021Property
3,31%
Return of investment Period from 2011 to 2021Stock
4,44%
Return of investment Period from 2011 to 2021Gold
3,26%
Return of investment Period from 2011 to 2021Where does the data come from?
This data comes from the sources at the bottom of this article (*). These sources deal only with the pre-owned market of Rolex watches, real estate, the stock market, inflation and the gold price. The overall market figures for the next few years are positive. According to LuxeConsult, the market will be growing times 3, from €25 billion to €79 billion. Just like with stocks: you want to get in earlier so you can experience the growth.
Deviations in the watch market
The data shown here is data based on the history of the watch market. Data is included from 2011 through 2021. At the end of 2021 and the beginning of 2022, the market for luxury watches was sky high, with the extreme peak being May 2022. Without including this peak, the average prices are a lot more realistic. Also especially since the market price of watches in 2021 is similar to that in 2023.
The time is now!
Over the past decade, the investment landscapes have undergone significant changes. While real estate, the stock market and gold produced modest returns, Pre-Owned Rolex Watches shine with an impressive annual increase of 13.1%. This means that a €10,000 investment can double in less than 6 years. With the pre-owned watch market expected to more than triple to €79 billion by 2023, now is the time to take action. Don't know where to start? Let us guid you in your search!
Our big fat disclaimer
We are not financial advisors and are not liable in any way. Investing involves risks and you may lose your investment. Therefore, always do your own research and make sure you make an informed choice when it comes to investing. This information is not an invitation to purchase financial products or investment services. This is also not advice and the information shown is not tailored to your personal situation. Decisions you make are at your own risk and expense.
Good to know: this data and information comes from third-party websites. We do not further assess the data on these websites for reasonableness, correctness, completeness or topicality. We accept no liability or responsibility for the content, use and availability of the websites referred to or linked to our site.
The calculation presented by this tool is not a guarantee or certainty of future returns. The returns may be higher or lower due to developments in the financial markets, society or other matters.