I often tell friends and family, somewhat seriously, that if they ever hit the lottery, their first stop should be a Rolex dealer. Why? Aside from the obvious allure of luxury, it turns out that buying Rolex watches is not just a status symbol, but also a smart financial move.
A report from the Boston Consulting Group (BCG) earlier this year found that Rolex watch prices have appreciated by an average of 20% annually since mid-2018 – significantly outpacing the S&P 500 Index. This solidifies the idea that Rolex isn’t just about telling time; it’s also about investment growth.
The luxury watch market, particularly the secondary market, is booming. The same BCG report highlighted that the secondary market grew to $24 billion USD last year, not far behind the $55 billion USD primary retail market. Predictions suggest that the pre-owned luxury watch market will continue to grow by 9% annually, reaching $35 billion USD by 2026 as more people begin to appreciate the value of watch collecting.
So, does investing in luxury watches make sense? Absolutely – and there’s no brand better suited for investment than replica Rolex. However, the watch market can be notoriously unpredictable. Amid the ups and downs, though, one Rolex model has emerged as a barometer for the broader market.
Paul Altieri, founder and CEO of Bob’s Watches, one of the most respected platforms for buying and selling luxury watches, highlights the Rolex Cosmograph Daytona ‘Panda’ ref. 116500 as a key indicator of market trends. This stainless steel chronograph is among the most coveted watches globally and remains one of the most recognizable models in Rolex’s modern lineup.
Altieri explains, “The Rolex Daytona ‘Panda’ dial serves as a bellwether for the current values and trends in the secondary watch market. Around a year ago, its price peaked at nearly $50,000 USD, but since then, it gradually declined to about $32,000 USD five months ago.”
The good news? “Prices have started to recover,” Altieri notes, “and are now hovering around $34,000 to $35,000, which indicates a resilient market.”
The real question is whether the prices for the Daytona ‘Panda’ will soften in the near future as its successor, the ref. 126500, begins to appear in the secondary market. However, it’s safe to say that the ref. 116500 will continue to serve as a benchmark for the luxury watch market due to its widespread appeal and iconic status.
Introduced in 2016, the ref. 116500 was the first cheap Rolex Daytona to feature a ceramic bezel, solidifying its place in Rolex’s history. Earlier this year, the ref. 126500 was unveiled at Watches & Wonders Geneva, featuring a slight design tweak – a metal “lip” around the ceramic bezel – and an updated calibre 4131 movement, boasting significant advancements in Rolex’s mechanical innovation.
Most buyers are less concerned with the technical specs and more drawn to the Daytona’s sleek design, cultural significance, and investment potential. In that regard, the Rolex Daytona ‘Panda’ will continue to reign as a timeless piece and a reliable indicator of market trends for years to come.