How to buy a Rolex and invest ?

Many of you have asked us how to properly invest in your first Rolex watch and start a collection. The answer to this honest question is much more complex than you might think. There are a number of factors that come into play and we' ll try to cover all of them for you in this article. Let's look at it by breaking it down into 3 "questions": "How to buy a new Rolex", "How to invest in a Rolex", "How to buy a used Rolex".

Let's first look at why so many people are asking these questions and why the Rolex brand has remained such a focal point of interest when it comes to timepieces for so many years now.

Table of content
Why Rolex - How and where to buy a Rolex - Modern or Vintage Rolex - Which Rolex for a given budget

A well-deserved crown

Many analysts still wonder why Rolex continues to be the most popular luxury watch brand today, whereas other high-quality brands have made their way into the watch market and have lasted just as long.

Interestingly, the more luxury watches there are, the more Rolex's status as a watch leader grows. I have been conducting a survey for years, almost every time I discuss watches with someone. The two questions I ask are always the same: "What does this brand mean to you?", "Why not another brand?". The answers are always remarkably similar:
- They are beautiful watches
- They are sturdy
- They're a sign of success
- The most famous watch brand
- They're a good investment
- They are more affordable than the "comparable " competition (the starting price for an Audemars Piguet "Royal Oak" is twice as expensive as a Rolex Daytona)

Even if it is certainly possible to find more accessible watches, just as accurate, beautiful and sturdy, what is it that keeps Rolex at the top of the watchmaking kingdom?

Firstly, we should acknowledge the fact that Rolex has maintained its place among watches with a recognizable social status since the middle of the 20th century and in every country on the planet. It is rare to attend a tennis match, a motor race, a regatta or a golf tournament without seeing the crown. Not to mention the number of famous actors, musicians or politicians who wear a Submariner, a GMT-Master, a Daytona, or of course a Day-Date on their wrist (in case you haven't seen it, you can find a full review of Rolex Day-Date vintage wathces).

The brand is virtually a permanent fixture in any city with a luxury district, in virtually every airport and in every department store that carries luxury brands.

This only partly explains the phenomenon because if we take a closer look, this is also true for other luxury brands, though they are far behind Rolex sales in terms of positioning.

Rolex owes its success in part to a few key factors: For a brand considered to be the first luxury watch brand, the "price-quality ratio" is without comparison ( we are referring here to the retail price - learn more about retail Rolex prices), excellent manufacturing (materials, finishes, and manufacturing processes), timeless design (the brand does not follow trends nor undergo "mood swings" from designers and marketing managers). That alone was enough for Rolex to build a reputation that seems unwavering.

Over time, buyers have found an additional reason that definitely supports the "Number One" thesis, a Rolex is rarely resold for less than its initial purchase price. For the amount of watch models out there it represents a true investment.

Unfortunately, there is another factor that makes purchasing a Rolex somewhat difficult, and now even even more difficult: the rarity of the flagship collection timepieces. By flagship models, we mean the vast majority of "professional" watches (Submariner, GMT-Master, Daytona, Sea-Dweller, Sky-Dweller, Explorer...). This now also applies to all steel watches and some gold watches. The game is becoming somewhat cloudy and complicated which makes our next question an obvious one.

Where and how to buy a Rolex watch

Buying a new Rolex is a "sport" that has become complicated to play because the manufacture has intentionally short listed the majority of its models (but without further information). This has generated a waiting list, for some timepieces that may last several years.

While getting on Rolex’s waiting list has become a national sport, it is less and less likely you will ever obtain a professional timepiece, with the brand going so far as turning away customers from their famous list.

One reason is relatively easy to explain. Many new customers that are lucky enough to get a new Rolex sport watch immediately resell it for two to three times its initial value... Rightly so, Rolex believes that this kind of customer generates a bad image and, secondly, it has created a situation that is contrary to what has allowed them to be successful for all these years: a good relationship with entirely loyal customers.

For several years now, Rolex sports model references have been absent from storefront displays The brand has just changed its "showcase" strategy by presenting all its models in more and more boutiques. Unfortunately, these exhibited watches are not functional and are only meant for display. And if you enter a boutique, you will only have access to a few Datejusts or Day-Dates, the Cellini collection and predominantly a lot of women's models, most of them gem-set. The models you are interested in will only come in their precious metal versions, sometimes gold/steel.

I would even like to add in that you can forget about what you have read on websites about how to dress, promising you the moon, or show off, in one way or another, a certain social status (some even go so far as to telling you to borrow a Patek Philippe or an Audemars Piguet in order to "challenge" a salesperson).

So what do I do if I want to get my hands on a Rolex no matter what? A good strategy would be to join a waiting list for a given model, then be patient and, in the meantime, turn to a second-hand watch, even if it means buying it at a higher price. But how do you buy a used or second-hand Rolex? Let's get to that question.

How to buy a used or second-hand Rolex ?

For anyone, buying a used Rolex is a complicated endeavor. If you have the foresight to read a few articles on the subject, you will quickly realize that there are a multitude of details that can play a vital role in determining the watch's price and its level of desirability. In addition, you'll need to have the watch authenticated (dial, case, movement, bracelet, bezel, etc.).

So should you turn to an experienced professional? It's preferable, but which professional can you turn to if your Google search results shows more than 30 options, ranging from online marketplaces to second-hand stores to sellers on Instagram acting as if they had an acutal storefront...

These next two paragraphs may seem confusing but they are an important read. Rest assured, there are many reliable and reputable resellers.

Buying a used Rolex online

When you are not an expert or adequately educated on the subject, it is better to go to a store and avoid buying by mail order, unless the website or platform offers an expert certified appraisal. There are two main reasons for this: the return period is often too short to have the watch authenticated and then returned, and pictures may not be contractual. If you are educated and expert on the subject, the less problems you'll have.

Buying a used Rolex in store

The job is relatively easy but requires a pre-appraisal by the seller. To do so, online reviews can help. You can also share the information with your friends and family and lead your own investigation; Rolex watch owners are not very difficult to find these days... It is then up to you to evaluate the seller and the quality of the product (we will come back to this later in the article)

Buying a used Rolex from a private individual

This may be even more difficult than buying online. Buying from a private individual can open doors to a number of complications: the watch's provenance, authenticity, integrity of watch parts, not to mention the difficulty of contacting the individual if a problem arises. Throw in the fact that the majority of private individuals are lining up their prices with professional second hand sites but offering no professional service and even less of an after sales warranty. If you don't know the seller or are not an expert on the brand, you should get a professional to look after this type of purchase.

If you are going to buy second hand, visiting a professional is definitely the safest option. Beforehand, you should have gathered all the necessary information about the professional in question, including the following information:
- How long have they been in business?
- Are they a reputable company?
- Are they a brand specialist?
- Are they an expert or are they a recognized expert themselves?
- ...

How to buy second-hand watches: key factors

Regardless of when the watch was produced, there are a number of things you need to know about buying a used Rolex if you really want to get a good deal. The most important factor being the watch's condition, you'll need to keep in mind what a new watch looks (or looked) like at Rolex. A second hand professional will determine the watch's condition based on his or her own (selling) criteria, which again brings us to the "trust" factor. It is up to you to determine the condition you are looking for according to your budget and the reality of the watch market.

New or vintage watch (collection) ?

In both cases, nearly all of the same factors apply.

New or modern watch "with stickers".

Buying a new watch or one that still has its "stickers" (original protective stickers) is determined simply by what you want to use it for. Obviously, this kind of watch will be offered at the higher price. If you want to wear it, it is more sensible to go for a watch that is "new" but already worn. If you want to make a long-term investment and "box" the watch, you can choose that option.

New condition watch

What I consider "new condition" is a watch that has not been worn excessively and shows no scratches. If it shows traces of micro-scratches and needs some simple reconditionning, it can be considered to be in "new condition". As for the watch's age, it can range from a few months to several years, because what determines its condition is "did the owner take care of it? It will be easier to find a "new condition" watches in steel, which is more impact resistant and less prone to scratching than a gold watch, which is a much more fragile and malleable metal. This then begs the question: "Has the watch been polished?", which would change its value in proportion to how well it was polished. Assessing the level of polish on a watch requires knowing how thick it was originally, which requires a bit of "expertise". If you want to wear the watch on a daily basis or even on occasion, then this is a good alternative.

An "Untouched" used watch

This applies to more or less contemporary watches and also for vintage watches. "Untouched" simply means slightly used but never taken to the brand's service department. There are advantages and disadvantages to purchasing a watch in this condition. The advantages: untouched watch, entirely original, usually had only one owner... Disadvantages: can be sold in average condition or "to be restored entirely".

The example above shows a Rolex GMT-Master model reference 1675. The watch's value lies entirely in the fact that none of its parts have been changed or modified. The watch is "untouched" and retains its full value.

A "serviced" used watch

By serviced, I simply mean a watch that has been sent to a brand's service department one or more times. It is important to know when a watch is serviced, polishing is done systematically. What is meant by polishing ? When the brand services, the watch is completely dismantled. The case and the bracelet are completely polished until any dings and scratches disappear. When the watch has been worn frequently and/or little cared for by its owner, the level of polishing is even greater, which implies the removal of a substantial amount of surface material from the metal. Here again, the level of polishing needs to be assessed in relation to its original case shape. Similarly, the brand may decide to replace worn parts, bezel, glass, winder, bracelet, buckle, dial, hands... All these modifications will have a definite impact on its value (or rather the watch's devaluation). Once again, you will need to get an expert involved to detect what has been done to the watch, especially if you do not have a servicing invoice.

Vintage Rolex watch with certificate of origin, box, accessories…

Whatever the condition of the Rolex is being sold, the original box (and outer-box) as well as documents (COSC warranty certificate, perforated or handwritten depending on the year) can in some cases guarantee a higher resale price. I say "in some cases" and I'll explain. Some brands (Audemars Piguet, Patek Philippe, Breguet, Vacheron Constantin...) offer an archive register service (archive extract). This means that they are able to deliver a document certifying the watch's originality as well as its history, for some of them. Rolex does not offer this service. So when you buy a Rolex Full set watch (box, papers and accessories), you have to trust the buyer. More and more blank certificates are for sale on specialized sites. It has become relatively easy to falsify original documents, and knowing that it is then impossible to confirm its authenticity with the brand, it has become even more complex. In such cases, it is sometimes better to contact a recognized expert for a complete inspection of the watch and receive a written expertise from them.

Patek Philippe Nautilus vintage 3700 with archive extract.

Return on investment

The ROI aspect is much more complex than it seems. Some articles published recently by the press or even some profitability graphs available on specialized websites (e.g. chrono24) unfortunately only reflect a very theoretical reality. A watch is neither a bitcoin nor a stock exchange share. It is a material asset. Unless the watch is new and "never worn" or has been kept in a safe since its purchase more than 20 years ago, it is very likely that it has been subject to wear and tear, or even to successive revisions. This makes it difficult to draw a trend diagram to monitor value as provided by many specialized platforms. Even if these curves give a relatively accurate tendency of how the watch is doing, you will need to know how to interpret them.

The two examples of trend curves above show 1. a Rolex 126610LV (in very good condition). The curve is fairly accurate as it is a recent contemporary watch. The second is a Rolex Submariner reference 5513 (in very good condition). This curve is impracticable because this watch has been produced from 1962 to 1990; the different productions according to the years (notably the dials) have totally different values. "Very good condition" is an evaluation given by a seller. A watch in very good condition with a new service dial, new service insert, new service hands and new service bracelet will have much less value than the same model that has undergone the wear of time but has all its original parts.

You should therefore be able to estimate the value of a watch by its condition, as well as by each factor that can bring (or take away) added value. Without going into details and examples (as there are far too many), a Rolex Daytona 16520 will not have the same value if it has a replacement bezel and hands as a completely original model from the same year.

New, second hand, "like new", or vintage? The "pros and cons"

New (in-store purchase)

PROS	CONS
Does not require any prior expertise	Long-term investment trend unknown for many models
Can be boxed and kept "in mint condition"	Waiting lists sometimes inconclusive
The purchase price (for difficult-to-find watches)	Purchasing unlisted watches is often a requirement to access sought-after watches

"New Second-hand" condition

PROS	CONS
Possibility to purchase before the price rises dramatically	The price at the time of purchase
No expertise is required to buy watches (but beware of counterfeits)	Requires significant market knowledge / Hard price drops may occur (example: drop in Nautilus and other rarities in May-June 2020)
Easier watches to purchase	Long-term investment for most watch models

Vintage

PROS	CONS
Trends are easier to read	Requires extensive expertise
Exclusivity (value)	Time consuming (condition assessment)
Proven market in terms of investment	Difficulty to find 100% authentic models

Which model to choose depending on budget

For less than 10K€ : Air King (ref. 14000) or Datejust (ref. 1601 / 1603)

From 15K€ to 20K€ : GMT Master & GMT Master II (ref. 167500 / 16700 / 16710 / 126710BLNR) or Submariner Date 116610LN (Pre 2020)

From 25K€ to 50K€ : Daytona (ref. 116520 / 116500LN / 116508 / 116509 / 116518 / 116619LB) or Sky-Dweller (ref. 326934)

From 60K€ à 100K€ : Daytona (ref. 6238 / 6239 / 6240 / 6241 / 6263 / 6265 / 116508 green dial / 116509 meteorite dial)

Aboce 100K€ : 6263 (Big Red Silver) / 6238 black dial / All Paul Newman dials / Daytona Platine (ref. 116506)

Last but not least: a recap

Have your watch evaluated

If you are armed with the right knowledge, you can do it yourself. We are here to help in our showroom to give you advice on the right investments, both contemporary or vintage. Comme and book an appointment.

Consider its condition

Perfect condition, slightly worn, polished, as is..., so many factors that go into determining the worth of a watch. Before deciding which model to buy, you will need to decide on the reason of your purchase. A pleasure purchase requires a different approach than a pure investment purchase. If you aren't able to see the watch in person, ask for pictures from multiple angles, demand high-resolution images to zoom in on, and ask any questions. It is up to you to determine what you want from it, with or without a specialized advisor.

Think of a price range

One of the best ways to check up on current market prices is to look at recent auctions or to estimate an average sale price on platforms like chrono24. If you are not an expert, avoid searching from private individuals. It is better to pay a premium price than to choke on your own disappointment after a purchase gone wrong.

Guarantee

Many used Rolex dealers offer warranties. Make sure they are specific about what it covers and how long it lasts.