It's almost the end of 2022 and insider business is reporting one surprising "asset" that is outperforming stocks, real estate and gold is Rolex watches. The Rolex brand is equivalent to Bitcoin of watches while Tudor is equivalent to Ethereum of watches.
I did a bit of research on Rolex watches, to find how its value is retained , however most of what came back was because of its brand and limited production. People are just willing to pay more for vintage Rolex watches and also its production scarcity. Each Rolex needs to be handmade and it takes 1 whole year to make 1 unit. Technically as long as Rolex keeps limited production on each line of watches, it will its value and maybe go up. Some articles say that luxury watch makers are in demand as less and less people are going into this industry and as such the watch prices should increase with each new model release.
Below is one of the latest and most sought after Rolex, the Rolex Rainbow Daytona which starts at USD1mil. It's price and unique looks make it very visible and a status symbol for the wearer.
I've yet to own a Rolex watch yet. My opinion on Rolex watches are they look quite old fashion and I can't appreciate the value it has. However, hopefully if I got more savings in future I might consider getting a Rolex just for some bragging rights. When I own my own real Rolex, I will also buy 1 Replica Rolex to wear for daily use and keep the real Rolex as a store of value.
Below is the prices of an authentic Rolex Submariner Date vs a replica from Lazada.
Interestingly do note that Rolex the company was setup as a non profit organization (Hans Wilsdorf Foundation). All proceeds (income from sales) go into the trust and then are used to pay salaries, business expenses and support charities). Non profit does not mean the company is not allowed to make profits, it just means all proceeds are 1st used to pay all business expenses and then flows to charity.