In 1954, at the Basel Watch Fair, Rolex introduced the Submariner line. It most likely could have been the single most pinnacle moment for Rolex, if not the entire watch world. After almost sixty years, the Rolex Submariner has changed very little and is possibly the most widely recognized watch ever. Due to its wild popularity, the Rolex Submariner could be one of the best investments one could either knowingly or not knowingly invested in. Now looking back, the value of a Rolex Submariner has greatly increased, and the retail sales pricing has also increased beyond just the normal inflationary rates.
A quick comparison of the price increase of a Rolex Submariner compared to the price increase of one ounce of gold is simply staggering. In 1954, when the Rolex Submariner was introduced it sold for around $150.00-$200.00, and an ounce of gold sold for about $35.00. Gold has, of course, seen some huge increases in value these last few years, and as of today, the price of one ounce of gold is $1168.29. Gold has increased almost 3400% over the last sixty years. A Rolex Submariner from 1954 however ranges from $25,000 to over $500,000 depending on the condition of the watch and who may have worn it. Rolex Submariners have increased in values between 16,000% to 250,000%. It is almost impossible to find a single item or investment that would have brought that of kind return and that kind of pleasure to it’s owner!
So, why has the value of the Rolex Submariner increased so much? For one thing, the quality of the watch manufacturing process has never wavered. Each watch is made to an almost perfect tolerance, and each part of the watch is either made specifically by Rolex or sourced from the single best manufacturer in Switzerland. Unlike other manufacturers, Rolex has kept total control of the production process and seemingly never outsourced any manufacturing. Also, Rolex keeps a very strict pricing policy for its retailers. The authorized retailers are not allowed to discount the watches whatsoever. Rolex has not overcrowded the market with authorized dealers of its watches. Rolex has attempted to control the supply of its watches to ensure the demand always stays high.
There are many factors that have brought the value of a Rolex Submariner – or for that matter, any Rolex watch – up year after year. The good news is that if you either own a new or old Rolex submariner, you have a small investment that not only tells great time but has been growing in value. You can pass this wonderful timepiece on to the next generation knowing that it will be worth more than when you bought it or the owner before did.
The post One of the Best Returning Investments ever: the Rolex Submariner appeared first on Bezel & Barrel written by Michael DiMartini.