Are you afraid of inflation? Buy yourself a Rolex!
What is the difference between investing and consumption? Investing it usually brings benefits in the form of increasing wealth. Consumption and, in fact, it is a waste of it. However, consumption does not always have to be mutually exclusive with investing. They could be an example real estate, which are a solid capital investment and at the same time a usable space in which we simply live. Consumption is the purchase of a new car, which loses value immediately after leaving the showroom, but after purchasing the so-called classic can meet our consumption needs and at the same time be an excellent investment. AND luxury watch?
What needs does a luxury watch satisfy? Instead of Rolex and Omega, you can buy a Casio – it will measure time just as precisely. Does it look good as an addition to a jacket? Probably yes, but there are cheaper ones that can emphasize our appearance just as effectively. Prestige? It is usually related to how others perceive us, and few people have such a keen eye to assess whether it is an original or the work of a talented craftsman from Turkey. To sum up, buying a luxury watch can be considered pure consumption, which serves to boost one’s ego and get a quick dopamine hit. Well, not entirely…
What comes harder is more valuable
Some luxury goods are characterized by: low supply, i.e. low availability. Just like at an auction – the winner is the one who offers the highest price, and the seller can choose between offers. We can observe such a phenomenon, for example, in the automotive industry. The latest Ford Mustang will be, as a rule cheaper than a Ford Mustang from the 1970s, preserved in good condition. This is due to the small supply of this good. The problem is that models from the 1970s are no longer produced, so it is logical that well-preserved pieces will fetch high prices. Rolex still produces its watches. So what can prove that it is a good investment? It’s all about production time.
According to Boston Consulting Group, the global luxury watch market is worth 75 billion dollars. As much as 30 percent this billion-dollar cake is the secondary market. Moreover, as demand increases, the secondary market for luxury timepieces is expanding. This is not only due to demand, but also supply. You have to wait from 6 to even 36 months to purchase a Rolex watch through an authorized sales channel!
It is impossible! After all, you can buy such a watch right away in stores and online! Of course – stores purchase both new and used watches from the most prestigious brands to then sell them to their customers. Rolex is not a scarce commodity. The difference between purchasing from an authorized distributor and purchasing in a store is the price.
Rolex is not just a gadget. It’s a great investment
Watch Rolex Oyster Perpetual 36 mm We can purchase directly on the manufacturer’s website $6,100. However, a long queue means that before we collect our new purchase, a thick layer of dust will appear on our wrist – this may take years! Another option is to buy the watch in a store, immediately. The same watch in the Prestige Watches store in New York costs not $6,100, but… $13,000! It is easy to calculate that the difference is over 100 percent The rarer the model, the more it increases in value if it is readily available.
According to a report by the Boston Consulting Group – 29 percent collectors declared that they paid more for their last used watch than the retail price of a new one. Simultaneously 40 percent of them said that they decide to buy second-hand to avoid long queues at manufacturers.
Application? A luxury watch does not have to be perceived as waste of money. The data confirms that selling such a timepiece takes some time We canget your contribution back with interest.