So What's Driving Prices?

Two distinctly different factors are driving the prices of luxury watches right now. The most powerful is an overall growth in luxury markets worldwide, particularly China and Asia, and those markets’ demand for fashionable goods.

In spite of – or perhaps because of – uncertainties in the stock market and other economic trends, many newly-wealthy and established  luxury consumers view name brand design products from Prada, Rolex, Gucci, Hermes, LVHM Moet Hennessy, Louis Vuitton, and others as worth owning not just for their intrinsic value, but as financial investments.

In Hong Kong especially, perennially fashionable Rolex watches are in huge demand. That demand is on the rise; people are lining up around the block to spend upward of six figures on Rolexes. Asia is a fertile spot for new wealth, so some regions are selling Rolex watches much like Americans sell iPads or iPhones. 

Another price driver is the rising price of gold. It has especially affected the all-gold 18 k Submariners of yellow gold as well as white and yellow gold.  

As gold soars toward $2,000 an ounce, some owners of these watches are briefly considering the possibility that their Submariners might be worth more melted down. However, experts wisely point out that no one’s ever seen a bar of gold at Sotheby’s priced at $1 million – but people have seen an all-gold Rolex at the famous auction house for $1 million.

This also relates to the investment value of Rolexes as a price driver: markets for gold and stocks fluctuate considerably day to day, while Rolex’s most popular models such as the Submariner enjoy steadily gradual increases in value. As more people recognize this, demand for the watches rises, and so do their prices.

Rolex in everyday fashion.

• Women continue to wear men’s Rolex watches more and more especially in the European countries.
• Rolex fans all over the world are choosing to interchange dials and bands with bright aftermarket pieces.
  
• Rolex fans are becoming younger and younger- there is a overwhelming growth in the "Young Rolex Community". Rolex isn't your Grandfather's watch anymore.
  

While markets are soft for Rolex DateJusts with Jubilee bands, as well as for Yachtmasters, experts say there’s no predicting where those markets will go.

There is no shortage of Men’s and Ladies’ DateJusts with Jubiliee bands in the pre-owned Rolex market. Some Rolex dealers have stopped altogether buying condition-4 Rolexes with Jubilee bands. Bob’s Watches continues to buy them, but has adjusted its prices accordingly.