Tips for Investing in Rolex Watches

Approaching watches as investments is risky business, but if there’s one brand that’s delivered steady gains, it’s Rolex. While it’s impossible to predict what any market will do, especially in the watch world, there are some basic practices that can help reduce risk. And while Rolex is known as one of the most exclusive watch brands in the world, there are affordable rolexes and hidden  gems to be found that might cost less than you think.

Research everything, and then research some more

As with any investment, it’s important to know the business. Rolex is a company with 120 years of history and incremental development. Their reputation has been built slowly and patiently, with small changes to minimalist formulas that have proven popular and reliable. That means that each watch, over multiple generations, has evolved through minor adjustments that have improved upon already great designs. Whether it’s the font color on the face of the Daytona or the clasp on the GMT Master II, every Rolex watch has undergone small changes over the years, and investing in the brand requires in-depth knowledge of those small differences.

Besides being able to identify the different references, there’s the most obvious risk of investing in Rolex: counterfeits. The ability to identify the small nuances of each reference also helps reduce the risk of picking up a fake. With an entire, thriving industry dedicated to producing fake Rolex watches, the brand might be the most counterfeited luxury goods producer in the world, so it’s vital to know what you’re looking at. And all of the above is before we even get to the need for understanding demand and market trends.

Do your due diligence

Boxes, paperwork, and service history documentation goes a long way. Even seasoned collectors can overlook small details, but having the paperwork and documented service history to validate a watch’s timeline is incredibly helpful. While superclones are becoming more common, counterfeit boxes and paperwork are not (though they do exist). So a good box, verified paperwork, and service history not only reduce risk, but increase a watch’s potential value. Like the investor, the end buyer wants a product they know is real and in good condition, and all of these materials help to satisfy those needs.

Find a seller you can trust

This next tip applies even to buyers hoping to pick up a Rolex at retail price. Like other high end brands, Rolex has become a brand built on relationships. If a buyer hopes to pick up a Rolex at retail cost, they’ll have to build a relationship with their dealer. If they want to buy a pre-owned piece, they need to know they can trust the seller. Purchasing online can be easy and convenient but exposes buyers and sellers alike to risk. While some sites offer verification services, there is no substitute for an in-person relationship with a dealer that’s been in the business for decades and is known for honesty and an attention to detail.

While the internet has done wonders for connecting humanity, it has also become a platform for counterfeit and subterfuge. Many are the horror stories of buyers and sellers who wind up on the wrong end of a deal gone wrong, ultimately losing thousands of dollars. But sticking with verified retailers and trusted secondary dealers with established reputations helps make that outcome less likely.

Final thoughts

All of this may sound complex and labor intensive—and it is, much like every investment strategy—but the main point here is that investing in Rolex watches is a complex game that can be tricky even for seasoned pros. With the secondary market being what it is, there is plenty of opportunity for enthusiasts looking to build a collection that increases in value over time. But much as traditional investors, those collectors should beware of the risks and be sure to put the work in at every step. And the truth is that there is no foolproof approach to any investment, especially in the watch industry. By exercising caution, knowing the industry, and building good relationships, hopeful investors can reduce some of the risk that comes with every investment.