Rolex is perhaps one of the most collectible brands out there. There are many reasons for this, but one we want to highlight here is the perception that a Rolex will increase value over time. In many cases this is true. Certain Rolex models have captured the headlines for their appreciation – namely the most collectible/rare models (ie Paul Newman dials, Double reds, unique Submariners, etc). We absolutely love vintage Rolex.
Most articles on vintage Rolex discuss the uber-rare models. We wanted to focus our efforts on the more “mainstream” vintage Rolexes – and uncover the appreciation of these models. One of the things we wanted to specifically shed light on is a factor that is rarely considered when discussing vintage Rolex appreciation: inflation.
Lets use an example: the Rolex GMT 1675 . Yes, there are some really rare versions of this, but let’s look at a “normal” 1675 to support our point. In 1970, this watch could be purchased for $255. In 2013, that same 1970 version can be purchased for around $6,000. That sounds like an incredibly valuable investment. However, when accounting for inflation, that $255 purchase price was really $1,553 in today’s dollars. Therefore, to go from $1,533 in 1970 to $6,000 in 2013, the watch realized a 3%/year inflation adjusted increase in value.
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Rolex Prices Guide – Power of Inflation
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We thought you would find the above chart* to be an interesting illustration of the power of inflation when calculating the true “appreciation” of a watch.
*Chart was adapted from information which first appeared on minus4plus6.com.
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