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April 26th, 2023
The pre-owned luxury watch market is soaring again, with Rolex leading the way. Prices for the newly launched Rolex Daytona models have gained 4% after the brand discontinued and launched a new version of the model that came into the spotlight after being worn by famous actor and racer Paul Newman. This recent surge took shape after March 27th and is ahead of all the curves previously seen in the watch market.
Rolex updated the Daytona to commemorate the model’s 60th anniversary and released three new spectacular models. One in platinum (turn it over to see the transparent case back), another in steel and the last in yellow gold with an Oysterflex bracelet. Another significant update is the new calibre 4131.
Rolex’s decision to discontinue certain watches has been pleasantly shocking. The list includes:
Going through Bloomberg's latest 2023 index for the top 50 most sought-after and traded luxury watches gave us an insight into the demand flow in the pre-owned market. Here’s what we found.
The prices for rare or discontinued luxury watches often see a spike in value because they are available in limited numbers. However, following the development in Rolex prices, the previously surged prices of discontinued Patek Philippe (Nautilus 5711) have dropped by 2.2% and Audemars Piguet (Royal Oak) fell by about 1.1%.
Rolex has been a prominent name on the watch radar for the past few years, holding great value, which is likely why it has become an alternative investment. Most people have opted to move out of stock and cryptocurrencies to invest in Rolex, which truly is fetching them a good deal of return. Of course, to see true investment returns, you have to choose the right product, and Daytona has continually surpassed all expectations.
Let’s explore how the iconic Rolex Daytona has beaten the stock market and provided investors with massive ROIs.
The stock market has been very volatile lately, making it unfit for investors with certain goals. Meanwhile, the initial prices for a Daytona model go steep but fetch a significantly high value in the long run. According to the latest report, the S&P 500 stock index showed annual returns of 8% from 2018-2023. On the other hand, the pre-owned luxury watches saw growth at twice the pace.
Moreover, the secondary market is expected to grow 9% a year by 2026, giving more reasons to people to collect Rolex watches.
After the pandemic, during which the secondary watch market saw an unprecedented surge, prices fell steadily in the past year. In fact, the prices of the Daytona models declined by approximately 30%. Even at the beginning of 2023, the prices of Daytona watches decreased by 14% while the overall watch market fell by nearly 19%.
But thankfully, the market has corrected itself, and there is a strong global demand for luxury watches, especially Rolex.
The biggest reason Rolex is doing so well is its limited availability, leading to an increasing demand. But recently, the company announced to set up three new temporary production facilities, with production scheduled to start in 2025, to help meet the rising demand.
When a company like Rolex announces discontinuing a certain model, people start investing out of fear of losing out.
This is one of the major reasons why the prices of the Daytona surged recently. Another reason is that the number of Daytona pieces in circulation today is firmly capped.
If you want to invest in a Daytona model today, the Rolex Cosmograph Daytona Ref. 116500LN is a great watch with great investment potential. The watch debuted in 2016 as the first Daytona iteration in steel with a ceramic bezel. Even today, the 116500LN has year’s long waitlist.
You’ll be amazed to know that irrespective of the market's ups and downs; the Daytona prices didn’t fall as much as others. It is the insane demand for these watches that continue to hike up the prices. As per experts, the Rolex Daytona Ref. 116500LN is a resilient asset with incredible appreciation in the coming years.
After a lot of chaos, Rolex is once again back in the spotlight as the leading investment option. The Rolex Daytona market index 2023 indicates the model’s investment potential in the pre-owned watch market. If you own a Daytona model, try finding out its current value. You’ll understand what the hype is about.