Thursday, April 4, 2013

What if I buy a Rolex today and sell it in 2023? Gain or loss!?







Whilst… I fetched out the 1987 White Vinyl putting on my LP-12 to play. Through the Harbeth Loudspeaker, a familiar mellow voice of Leslie Cheung… if he is not dead, he is one year old than I….he is Really the "Kor Kor"! I am his fans and I am also Fans of Rolex too.

Rolex List price Increased by 16%-20% in two years
All by sudden, looking at the Rolex price book of Sept 2010, and check with the Today's price again I chose the most popular models and listed here for comparison after about 24 months. As I can recall that the next price Adjustment was March 2011 after Sep 2010. Total 4 times in 2011. And no price adjustment since Nov 2011 till today.

A. Submariner SS Black Ref 116610LN $53,600 now $62,100; increased by $8,500 that is 15.9%

B. Submariner Green bezel dial Ref 116610LV $57,100 now $66,100; increased by $9,000 that is 15.8%

C. Air king Ref 114200 $33,200 now $38, 500; increase $5300 that is 15.96%

D. Submariner WG Blue Dial Ref 116619LB $227,500 now $263,600’ increased by $36,100 that is 15.9%

E. DeepSea Ref 116660 $71,200 Now $82,500; increased by $11,300 that is 15.9%

F. GMT master II Ref 116710LN $52,900 now $61,200; increased by $8,300 that is 15.7%

G. GMT master II Two Tone Black ref 116713LN $78,900 now $91,500; increased by $12600 that is 16%

H. Day Date Ref 118238 Yellow gold $202,800 now $243,200; increased by $40,400 that is 20%

I. Lady Date Just Ref 179171 $57,100 now $66,100 ; increased by $9,000 that is 15.8%

J. Daytona SS White Dial Ref 116520 $75,500 now $87,500; increased by $12,000 that is 16%

Note that so far since Nov 2011, Rolex has not yet adjusted any price so far, and as an average they increase 8% a year. That is able to cover the Inflation and is better than any interests bank can offer.

Investment on A Day Date for ten years

Day Date has the biggest price mark-up for 20% in two years, probably due to the Gold Price is quite High in the past two year, in fact Gold price has been dropped about 10% from the peak in 2011..

Make a Assumption, I buy a New Day Date Ref 118238 today at HKD$ 243,200 less 10%* discount. My cost is HKD$218,880 today.

Every year Rolex Adjust 10% for the price, by 2023 the price will be 2.5973X than Today price. Ref 118238 will be marked with list price of HKD$243,200x 2.5973 , that is HKD$631,663!

The Compound growth is huge, and if your Rolex is kept in good condition, you can sell them like new.

If that is a Collectible colour or special Dial… man, the ROI is  Very Good!

How about sell your used DeepSea after ten years?

It is a pity to keep the watch in safe, how about I use the watch everyday I buy a DeepSea Today!?

Now I buy a DeepSea with Discount say 10%* my cost is $74,250 Today

After ten years, by 2023 the DeepSea will be priced at List price HKD$82,500 x 2.1589 =$178,109.

In case I use it for 10 years, and I send it to RSC for Polishing and cleaning with Today money HKD$1800.

I sell it to the used market at 45% (Depends on your negotiation skill, range bewteen 40%-55%) of the selling price, that is 178109x.45% = $80,149 -$1800= $78,349

That mean on money value I just spent $4099 for wearing a Rolex Top Line Diver’s watch for 10 years…

Is that a good deal!?  The Key Things is "Buy Low and Sell High!"

Note: Some people can get VIP docsount 8%-14% in Rolex AD HK, of course not me!
HK Snob

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