Rolex has undergone significant evolution, and this year Rolex watches have seen a decline. Is there still long-term value in holding them?

Despite the price decline of Rolex watches this year, Rolex has become more than just a watch; it is seen as an investment with financial attributes.

Over the years, Rolex and other top luxury watches have undergone significant changes, not only in terms of pricing but also in their characteristics and uses. These top luxury watches now seem to be investment items.

So, do they really hold long-term value? What does the future hold for them? Let's analyze.

Reasons for the Rolex Hype

Rapid Rise in Five Years

In the past five years, the value of Rolex has seen remarkable growth, attracting the attention of many collectors and investors.

During this period, the average price of many popular Rolex watches has increased by nearly 42%.

These watches have become financial investments rather than just luxury items.

Factors Contributing to Rolex's Value Retention

The value increase of Rolex over the past five years can be attributed to several factors:

1. Brand Reputation and Perceived Scarcity: The brand's high reputation and the scarcity it creates play a decisive role.

2. Exceptional Quality: The superior quality of Rolex cannot be overlooked. Rolex watches are highly durable and can look as new even after ten years of use, greatly enhancing their value retention.

3. Longevity: The long lifespan of Rolex watches is another significant factor in their long-term value.

Decline in Rolex's Value Retention

Although Rolex performed well in the past five years, the prices of most luxury watches, including Rolex, declined last year.

Uncertainty about the value retention of luxury watches and the economic slowdown led to decreased demand, resulting in oversupply and price drops.

In other words, the value retention of various popular luxury watches has declined in recent years.

Future Investment Value of Rolex

For regular watch enthusiasts, Rolex is more for wearing than for speculation.

Despite a price drop of over 3% last year, Rolex still has good long-term value retention.

It's important to note that this is about value retention, not value appreciation.

Looking at various Rolex series, very few watches achieve appreciation.

Even if they do, it requires long-term holding, so Rolex does not have strong speculative attributes.

Last month, the global Rolex index dropped by only -0.36%, which might indicate that the market has bottomed out. While not all Rolex watches can appreciate, most still retain their value.

For regular enthusiasts, there is no need to worry about further declines if you plan to wear the watch long-term, as the brand has inherent value protection and will grow in the long run.

For regular enthusiasts, owning one or two Rolex watches cannot be considered an investment.

Most Rolex models do not achieve significant growth, especially new watches, which are purchased at a premium and depreciate with wear.

Breaking even without losing money is already good.

Currently, second-hand Rolex watches, after removing the premium, still have some potential over time.