Is a Rolex Watch a Good Investment?

Written By: Vahid Moradi

First and foremost, when purchasing a watch, the most important factor to look at is how you are going to use it. Every watch is produced with the thought in mind that they are going to end up on the end user's wrist. Watches are meant to be enjoyed and worn, so with that in mind, one can then ask, “Is a Rolex watch a good investment?” 

Rolex occupies a rare position in the world of luxury watches, where heritage, precision, and market demand intersect. For collectors and buyers alike, the question often arises: Is a Rolex a good investment? The answer depends less on the crown on the dial and more on the reference itself, its production history, condition, and long-term desirability. While Rolex consistently outperforms most luxury brands on the secondary market, not every model is built to perform equally well over time.

Whether purchasing new or selecting a preowned Rolex with established market demand, investment outcomes depend on choosing the right reference and understanding its long-term desirability. This article examines how and why certain Rolex models hold or gain value, and when a Rolex purchase makes sense as both a personal timepiece and a financial consideration.

This article explores:

• Which Rolex models historically show the strongest value retention
• The factors that influence long-term value, from scarcity to condition
• How the preowned market shapes Rolex investment performance
• When buying a Rolex as an investment aligns with or conflicts with collecting goals

This perspective helps separate investment-grade references from everyday models, offering clarity for buyers navigating the line between passion and portfolio.

Why Rolex Watches Are Considered Investment Pieces

A Rolex watch can be a sound investment because certain models consistently retain, and in some cases, increase their value over time. This performance is not accidental. It reflects a combination of enduring brand reputation, disciplined production practices, and design choices that remain relevant across decades. Together, these factors explain why Rolex watches often stand apart in the luxury watch market.

According to a Morgan Stanley industry report, Rolex surpassed $10 billion in annual sales for the first time, reinforcing its position as the leading Swiss watch brand by market share. That scale, paired with careful control over supply, plays a central role in sustaining long-term demand.

Brand Prestige & Global Demand

Rolex is one of the most recognized luxury brands in the world, and that recognition extends well beyond dedicated watch collectors. This global awareness supports a broad and active secondary market, where pre-owned Rolex watches remain highly liquid compared to most luxury timepieces. Demand is not limited to current production models; vintage Rolex watches with strong provenance are often just as desirable, if not more so, than their modern counterparts, reflecting both their exceptional craftsmanship and historical relevance.

Because interest spans generations and regions, owners are rarely dependent on a single buyer profile when entering the resale market. That depth of demand contributes to long-term investment value, allowing select references to maintain their value over time as interest remains consistent.

Limited Production & Controlled Supply

Rolex maintains strict control over its production volumes, particularly for its most desirable references. Limited production runs and selective distribution contribute to persistent waitlists at authorized dealers, especially for professional sports models such as the Rolex Daytona and Rolex GMT-Master II. As a result, many buyers turn to the secondary market, where pricing more accurately reflects real-world demand than retail availability.

This controlled supply is a key factor influencing the value of Rolex watches and helps explain why certain references can retain their value. For collectors asking what Rolex is the best investment, the answer often comes down to careful evaluation of production history, condition, and long-term demand. While sports models tend to dominate investment discussions, watches typically viewed as dress pieces, such as the Rolex Day-Date, can also prove valuable in the future when rarity, provenance, and precious-metal construction align.

For those building a collection around established brands like Rolex, this dynamic reinforces the importance of taking a measured approach to model selection. When paired with proper care and documentation, these factors help buyers make informed decisions about long-term ownership and investment potential.

Heritage, Innovation & Reliability

Rolex’s reputation is built on technical milestones, such as the Oyster case and self-winding Perpetual movement, but its lasting appeal comes from consistency. The brand’s commitment to functional design, mechanical reliability, and a timeless design language allows many references to remain visually relevant decades after production.

That continuity is especially important in the investment context. Watches that feel dated rarely hold value. Rolex’s ability to evolve without abandoning its core identity keeps both modern and vintage Rolex models firmly positioned as long-term collectibles.

What Makes Certain Rolex Models Retain in Value

While the Rolex brand itself carries prestige, specific characteristics are what determine whether a particular model is likely to hold its value over time. Understanding which specific watches make a better investment requires examining several key factors that drive value growth.

The most important characteristics include:

• Iconic status: Models like the Submariner, Daytona, and GMT-Master have cultural significance beyond watchmaking
• Discontinued references: When Rolex stops making a particular model or feature, rarity increases its desirability
• Original condition: A watch’s provenance, including its original documentation and packaging, significantly impacts its resale value

Professional sports models typically perform best as investments, with each offering unique appeal to collectors. The Rolex Submariner attracts both divers and enthusiasts, while the Daytona's racing heritage makes it highly sought-after. Meanwhile, the GMT-Master's dual time zone function and colorful bezels create strong interest.

However, certain vintage models from past decades often outperform modern Rolex watches in long-term value. These watches benefit from rarity, historical significance, and limited surviving examples in original-condition qualities that continue to attract collectors seeking established value in the pre-owned market.

Liquidity and Exit Strategy: How Rolex Fits Into a Watch Investment Portfolio

One reason Rolex remains central to many collectors’ watch collections is liquidity. Rolex watches often retain demand across market cycles, making them easier to resell than most luxury timepieces. For owners who eventually choose to sell their Rolex watches, this depth of interest helps support more predictable investment returns compared to niche brands with smaller buyer pools.

Models with established reputations, particularly sports watches, tend to attract the most consistent attention. A sought-after Rolex with strong provenance can hold its value over extended ownership periods. This is especially true for references with limited availability or enduring collector appeal.

While not every vintage Rolex will perform the same, vintage watches are often valued for their historical context, production details, and rarity, qualities that can set them apart from modern releases. When approached thoughtfully, Rolex ownership offers a balance of enjoyment, collectability, and flexibility that few luxury assets can match.

Investment Risks and Realistic Expectations

While Rolex’s reputation for value retention is well established, successful collecting and investments in Rolex still depend on thoughtful selection and a long-term perspective. Within a well-curated Rolex collection, models chosen for enduring demand, limited availability, and historical relevance are best positioned to hold up well in the market, particularly when they are preserved as mint-condition Rolex watches rather than treated as short-term trend pieces.

Market Fluctuations

Watch values rise and fall in response to broader market conditions, which is why even models with a strong history can experience periods of price movement. For many collectors, the more enduring question becomes: how much is my watch worth over time, not just financially, but in terms of craftsmanship, heritage, and the experience of wearing it. Approaching a Rolex first as a timepiece to be enjoyed allows any long-term value to remain a welcome, rather than essential, outcome.

Buying from a Trusted Seller

Unfortunately, the secondary market attracts counterfeit Rolex watches, making authentication absolutely crucial for protecting your investment. Working with a reputable dealer like CJ Charles provides peace of mind about authenticity and condition. To avoid counterfeits, you should always purchase goods directly from the trademark holder or from authorized retailers.

Pricing

Contrary to popular belief, not every Rolex trades above retail price. While highly sought-after models like steel Daytonas command premiums, many references actually sell below their original retail price on the secondary market.

When a Rolex Is a Good Investment

Is buying a Rolex a good investment for you? The answer depends entirely on your goals and approach to luxury watches.

A Rolex makes sense as an investment when you plan to keep it long-term and choose proven models with established collector followings. The best Rolex watches for investment are typically professional sports models, though you should also be prepared to follow expert watch care tips to maintain your watch properly and preserve all original documentation. 

Pre-owned watches are gaining traction, especially among younger buyers: 40% of millennials and Gen Z say they are likely to purchase one in the coming year, a noticeably higher share than among Gen X or Baby Boomers.

Consider these crucial buying factors before making your decision:

• Model selection: Focus on iconic references with established collector demand
• Condition matters: Mint-condition pieces with original box and papers hold value best
• Long-term perspective: Growth in value typically happens over years, not months
• Personal enjoyment: You should genuinely want to wear and enjoy the timepiece

Keeping these considerations in mind helps clarify what to look for when exploring how to buy a used Rolex watch, from model selection to long-term ownership value.

When a Rolex May Not Be the Right Investment

Conversely, investing in Rolex watches may not be the right fit if you are seeking guaranteed short-term returns. While Rolex watches generally perform well compared to many luxury timepieces, note that not every model is positioned to hold as much value over time, particularly in a market where prices can fluctuate.

This consideration is especially important for those viewing watches as investments rather than long-term collectibles. One of the key factors to consider is whether a watch’s appeal is rooted in lasting design and historical significance or driven primarily by current trends. Fashion-forward designs often lose momentum as tastes shift, while classic Rolex references with established heritage tend to maintain desirability across generations.

Invest in a Legacy, Not Just a Watch

A Rolex watch represents more than fine mechanics; it reflects a commitment to quality, enduring design, and a legacy shaped by decades of innovation. While many Rolex watches offer meaningful investment potential, their lasting appeal is rooted in craftsmanship, heritage, and a track record of relevance that transcends short-term market trends. From modern icons to vintage watches and rare Rolex watches, value is shaped by several factors, including condition, provenance, and long-standing collector demand.

For those investing in a Rolex, the strongest results often come from selecting references with a proven track of desirability and models that remain highly sought due to their history, design integrity, and limited availability. When chosen carefully, these watches can represent a strong investment, while still offering the satisfaction of ownership that defines true collecting.

At CJ Charles, every timepiece is selected with this balance in mind. Our curated collection of authenticated preowned Rolex watches reflects both the brand’s legacy and the discerning standards of collectors who value substance, not speculation.

Disclaimer: CJ Charles is an independent luxury watch retailer and is not affiliated with or endorsed by Rolex SA or Rolex USA. The information provided is for informational purposes only and is not financial advice.

 

Written By: Vahid Moradi

Vahid Moradi’s lifelong passion, dedication, and commitment for the jewelry industry led him to become the respected owner of CJ Charles Jewelers in 1988. From that moment, Moradi’s single focus in business was to become recognized as the pinnacle of value and world-class quality in the his Community. Over 34 years later, CJ Charles continues to grow and thrive as a successful, family-owned business that consistently provides exceptional service to all their clientele.

 

Sources:

1. Bloomberg. Rolex, Patek Used Watch Prices Fell to Three-Year Low in 2024. https://www.bloomberg.com/news/articles/2025-01-07/rolex-patek-audemars-piguet-used-watch-prices-hit-three-year-low
2. Deloitte. Deloitte Swiss Watch Industry Study 2025. https://www.deloitte.com/global/en/industries/consumer/perspectives/swiss-watch-industry-study.html
3. Fortune. Rolex posts a record $11.5bn in sales—more than its top 5 competitors combined, Morgan Stanley says: 'No other luxury brand can claim such a dominant position'. https://fortune.com/europe/2024/02/29/rolex-record-sales-more-than-5-competitors-combined-morgan-stanley-luxury-brand-dominant-position/
4. U.S. Customs and Border Protection. 1 shipment 243 fake designer watches worth over $6 million seized by CBP officers in Chicago. https://www.cbp.gov/newsroom/local-media-release/1-shipment-243-fake-designer-watches-worth-over-6-million-seized-cbp