Rolex watches have long been coveted not only for their precision timekeeping and classic styling, but also as investments that can appreciate significantly over time. In recent years, the increasing demand combined with limited supply has made Rolex one of the hottest investments among luxury collectibles. With record-high sales of pre-owned Rolexes in 2022, many experts predict Rolex to continue being the best luxury investment in 2023.
Demand for Rolex continues to rise while supply stays limited
The demand for Rolex watches, both new and pre-owned, has been rising steadily for over a decade. At the heart of this surge in demand is the artificial scarcity created by Rolex. They produce around 1 million watches per year while demand is estimated to be around 7-9 million. This limited supply strategy preserves the exclusivity of the brand and fuels the rise of the secondary market. On the pre-owned market, prices for sought-after Rolex models like the Daytona, GMT Master II, and Submariner have skyrocketed. With no signs of demand slowing or production increasing, record-high resale prices are expected to climb even higher.
Return on investment beats traditional assets
From 2018-2022, the value of investment-grade Rolex watches has appreciated over 20% per year on average. This return outpaces even red-hot assets like stocks and real estate over the same period. Rolex sports models in particular have seen their value double or even triple in only a few years. Going into 2023 and beyond, top-tier consultancies like BCG predict continued rapid growth averaging 12-15% annually for pre-owned luxury watches. With low correlation to financial markets, Rolex serves as an excellent portfolio diversifier and inflation hedge as well.
New models and shifting preferences drive future growth
While the foundational Rolex sports models show no signs of losing momentum, shifting consumer preferences and strategic new releases position Rolex for even stronger growth. Demand continues rising for precious metal variants adorned with diamonds and gemstones. Rolex also caters to this with pricier offerings in their Pearlmaster and Gem-set collections. The new Rolex releases generating the biggest buzz among collectors are the updated Air King models and the colorful Palm Motif dials. Discontinued references like these often appreciate rapidly on the secondary market, indicating the strength of Rolex investor enthusiasm moving into 2023.
With demand still rising, limited supply, record sales of pre-owned watches, and new references catching collector attention, Rolex remains the best bet in luxury watch investment for 2023.