WSJ is about two years too late to report this. Secondary market reached the peak last year and has been declining for 6 months

Other outrageous practices by Rolex ADs are implying that buying some piece of jewelry from them will help you build a “relationship” with the authorized dealer. They never mention how much of this other jewelry you need to buy, and nothing is in writing (so they can’t get in trouble with the law).

The biggest reason I don't want a Rolex is because wearing it paints a target on your back that says "Please mug me, I have money."

Two words: Artificial scarcity. Rolex produces more watches than Patek, AP, and Vacheron put together but pretty much 80% of the stock goes to the grey market where prices are inflated because only 20% of watches are made available for purchase at authorised dealers to meet 100% of the demand. They have recently started certified pre-owned program to get bigger piece of that aftermarket pie. Used to own a few pieces but got rid of them a while ago seeing all this nonsense (profit was nice though but that isn’t why I collect). Rolex used to stand for a brand that offers a great watch at a reasonable price that was accessible to an average joe. Now that brand is Omega, at least in my eyes. My Railmaster for e.g. is a far better watch in every aspect than the Explorer I that I used to own. And dollar for dollar, Seamaster 300m diver (which I also own) is a better watch than Submariner. If you have money for a Rolex, get a Lange or a JLC, instead. Can also get used/vintage ones from the aforementioned “big 3” swiss brands.

The ADs only sell to their exclusive clients who they know are flipping those Rolex to the grey market- so that means the average consumer cannot purchase a Rolex from the AD. Supply, demand, and AD selective selling. Simple.

Need a video on how Rolex do their waitlist and how come there are a lot of full stickers watches that’s out there in the grey markets while most of us cant come to the store and buy it regularly

Thank you for video 😊

Interesting. And Very cool! Thanks.

What an easy and relatively clear example of Supply and Demand to follow.

Waiting list is a false word to use when waiting for Rolex. There is no such thing as a waiting list. You do not move up on the list as people ahead of you get those watches. The list is just to register your interest, when and if the AD sells you the Rolex you want depends on the variety of different factors such as, spending history, potential to buy more stuff other brands and luxurty items and frankly how they like you as a person.

The reason why Rolex (and also Patek) have cachet is that they were one of the few Swiss watchmakers to survive the "Quartz crisis" of the 1970s. During that time many venerable Swiss watchmakers went bankrupt or almost bankrupt. Eventually the Swatch Group ended up buying out many brands and consolidated them by using similar movements across different brand names. Rolex proudly remained independent.

Voiceover is excellent, not as squeaky as others on WSJ. Very useful data.

Supply and demand, like diamonds, the market is manipulated to ensure prices remain high. Defining what the real price is is down to you, know one is forcing you to pay!

When I explain supply and demand I simply tell them to look at Rolex. Prime example of it.

Two words: social media. It used to be, if you wore a high status watch you would get a certain amount of “social credit“ limited to the few people you would interact with on a given day. With the advent of social media, that picture of your watch is seen by more people, and becomes a part of your personal brand. Therefore, the amount of “social credit“ utility has increased. This makes them more desirable, increasing their demand and driving up prices. It’s not just for Rolex watches. Luxury items in general have experienced sharp or increases in demand.

When I bought my OP about 5 or 6 years ago the store had every Rolex model there was in the store. They had the one I bought in all different color dials. I wish I would’ve spent more and bought an Explorer. When I entered store I knew nothing about Rolex I just saw a commercial watching Wimbledon and thought “I am going to buy one.”

Because they can make more money by limiting supply to retail and covertly selling directly to the secondary market?

Imna opt out my guy

My dady bought one NKUWAN and he loves it. It had been there for over 10 years when he went out with it.

Sort of like the Birkin and Kelly by Hermés, they both go up in value by 100% in the used market. It’s crazy. A basic Togo Leather Birkin 35 costs $12k - $15k at the Hermés store, but it’s $25k - $30k in the used market.

I've talk with a vendor at the rolex store paris and he told me: i use most of my time at managing the reservation and waiting client list than sell watches. it was a 6-month waiting minimum to get just an air king. the stupid thing is "collectionneur" pay a bigger price for the same product and they're happy (and the most just resell after to make a quick buck). this moron keeps the market and the bubble insane.

Rolex certainly distinguishing between they customers. their waiting lists are just something made up to calm you down rather than literally saying "we can't sell you a watch". they sell watches to their really fancy clients. They don't want to sell a watch to someone who worked at Chipotle for 6 months and saved $8,000. Instead of saying “sorry I can't sell you a watch” without being rude to such a customer, “of course! I saved your name on the waiting list. I will give you a call as soon as possible!” means a more makes sense option to company policy.

Iam so glad I was able to buy Rolex in store after waiting for a year. All sales started because of young buyers full of cryto money. Iam the same and I will buy more models and not for flip but to wear.

It is incredible how foolish people are to be willing to pay over MSRP for something that is already overpriced!

WSJ - there is one reason for the huge drop. It is called interest rate increase. Interest rate revised valuation of all asset, non cash producing assets included. Last time I looked at my explo, it just has given the time, no money.

My theory is money laundry; tax avoidance, and money transfer. Smaller amount but easier to transfer across the world, much much easier than classic car.

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.

My spouse and i are increasing our long term investments in a variety of stocks and exchange traded funds. we have set aside $250k to begin tracking inflation indexed bonds and stocks of companies with strong cash flow but would not hurt to be aware of ways to make short term gains too.

Bubble definition - paying over retail

This is a case of consumer behaviour disrupting the actual market they are targeted in. Creating a secondary market of readily available used products in a separate supply chain, where the manufacturer is the second choice of supply, causing the manufacturer to rethink its business model just to meet the excess demand created by themselves through deliberate scarcity to demonstrate value of their product but end up losing it to resellers. 🤔

I once saw a guy selling a 'Rolex' on the street for $3 dollars. One of the numbers telling the time had already fell off and was loose at the bottom. The surprising part was that there were still people buying from him. He had a bag of them.

Hype, marketing, desirability,demand……..

This is why me and James Bond wear Omega

Has to do with the waiting game and impatience to immediately have access to own and wear the 'one' which is desired. Very few get on the waiting list as most are 'connections' to retailers a d wholesalers, and they are the ones feeding the pre-owned market as a 'bottleneck' controlling supply. 😮

Rolexes are the Chanel Classic Flap / Birkin for men. They’re inordinately expensive, price gouged on the scalper market, and yet somehow ubiquitous, because everyone who wants one has one. They’re so far from their origins as a classic tool watch maker every guy can save up for that it feels like what made them special is gone. The magic is dead. They’re hyper capitalist commodities that don’t stand for anything anymore.

Honestly a rolex is a big purchase, im considering one soon. I actually think waiting a year or 2 isnt so bad for half the price. Especially if its going to worth even more down the road.

My old TIMEX ⌚ takes a licking and is still ticking 🎉

And the makers of clone watchs say: tank You

I like how he called wear marks "Personal Details". Manipulation is at an all time high.They are just trying to prolong an obvious bubble.

Yea my Submariner seems to have inflated in value over the last 2-3 years.

This is because... re sellers bulk buy on rolex from retail stores at retail price. Then jack up the prices at resale value.

Interesting

ill stick w my gshock

Price of the yellow Stella dial oyster perpetual is still hovering around 3-4x retail price… given up on that piece. Absolutely bonkers. On to the next!

A Rolex is a good watch. PP, AP, VC, and GS are great watches and offer much better value. I've only been collecting for 25 years. I started with a G shock and recently acquired a 5131.

the waiting list is just too much . my suggestion is try to order and while waiting for that 5-10 years , do some dollar cost average on gold , stocks , crypto . how about getting a grand seiko , tudor , omega or even panerai :)

I got a feeling the market is going to drop soon, the supply on the used side is just getting out of hand.

So basically a shift in demand by people who don't know what to do with their money

Cant be bothered with expensive watches, really. I love the looks and design but I enjoy using my Coros running watch more than even if somebody gives me a Rolex. They both tell the same time anyways. 🥳

Glad I collect Pateks

Perceived value.

To me it's stupidity. If I had that much money I would buy a watch for that price instead of used. People are buying Rolex and media says recession is hitting hard. How ?

You guys should talk about the CSGO billion dollar skin market. Similar market dynamics but completely just pixels.

i really want this market to go downnn

Its market demand that made the issue and lack of production

Good

Even if I had money for buying the rolax watch I rather pass!😂

Good watches

Essentially, the same thing that happened with the used car market a few years ago.

Some people would want to have this expensive trinket, but at this price it is not a three fans dream coming true.

The question isn't why the prices are what they are on the secondary market, but rather why Rolex is effectively selling brand new at a discount.

THAT'S CRAZY. GLAD I do not collect Rolex watches. What a waste of time.

Make a video called "Why New Rolex Watches Go Straight to the Grey Sites and Dealers." Every Rolex model you can think of is in plenty supply on grey sites...like Jaztime.

Here's what you do: You want a Submariner, but you'll have to wait a year or two, and pay $18,000.00 for it. Or you can pay even more than that for some used Rolex.... OR...you can buy an Invicta Pro Diver, get it tomorrow, and pay 60-80 bucks. It looks like a Subby, but a little better. It has a Seiko automatic movement. While the Rolex is water resistant to 300 meters, the Invicta is good to 200, which is still about 3 times deeper than anyone can dive.

Classic Adam smith theory! About diamonds and water!

Two words: market ing

I am never satisfied with WSJ videos. I don’t know why! I feel I haven’t learnt anything after watching their videos! Again, I don’t know why!

My citizen blue angels chronograph syncs to the atomic clock in Colorado daily, adjusts itself for daylight savings, tells the day and date (Perpetual calendar including Leap years up to the year 2099), never requires a battery change because it is solar eco-drive (6 months Sleep mode, if left in dark upon being exposed to light it adjusts itself to the correct time), has a sapphire crystal, easy push button chronograph with 2 clicks, gets me compliments and cost me $250 USD used from a person that bought a nicer Citizen model. Just don't ask me reset it I will hire a rocket scientist for that. ROLEX is a status symbol, even Solid gold ones don't have a lot in gold only 4.5 oz/133 grams. Under $10,000 of gold yet they ask $50k+ retail

The reason is painfully simple: too many really stupid people have too much really disposable money.

Used to able get used one with discount

My Casio is my Rolex!

My brother left me one from 1981-82 ,all gold he's gone and that watch aint seen the light of day,why because i went to king seiko long ago.

I was gifted a 5513 no date sub from 1990, its last year of production. Its price then was maybe 1500 in today's money, now it's worth 15k. 10x more in 32 years and it's only going up, not that i would sell it. Also this trend isn't unique to rolex but most swiss luxury watches like AP, Patek, Cartier etc.

It costs Rolex probably under $1,000 to make a Rolex Submariner. MSRP around $10k. The fact that these resale sell for $14k+ is amazing.

It's been like this for at least the last 5 years.

The only reason is because merchant group hold these stock rolex by borrowing at very low interest rates during the pre-covid years. They basically are now dumping the stock pile of rolex into the market while people are still thinking these industrial junk are good quality investment product.

I am on waiting list since 2002.

You can’t buy a new one, limited supply. The Authorized Dealer(AD) won’t sell their inventory to just anyone. You need to have an established relationship with them, bought multiple watches from them before they sell you one of the newer models that are in high demand. You might need to buy a model no one wants in order to buy the model you want. If they dismiss you can go to the ‘grey market’ to buy the model you want, of course at a much higher price than the suggested retail price. This is Ferrari’s business model.

There is no reason why these watches should not cost any more than a cell phone..

I'm on 4 different list in 2 states at several Rolex ADs... Waiting on a yachtmaster .. I don't do used anything...

It's called madness

I went to Bob's Watches and got ripped off BIG TIME from them, sometimes you just can't win? 🤯🤯 Bob's is no where even close to an Authorized Dealer.

I bought a really nice Invicta Speedway, and I have a nice watch and $14,950 in the bank.

That's supply x demand, this happens with watches, shoes, cars anything really that has more buyers than product availability

@turbyoulance 1 second ago I was told by an ex AD that and I will use this as an example. Say a Rolex watch is Listed at rrp at an AD's for $10,000. The AD buys it for 68% .In this analogy it is bought for $6,800. So Rolex make a considerable profit on that $6,800 and has to , pay it's staff and pay the electricity bills and advertising and shipment/s, etc, So this $10,000 rrp priced watch is actually made for around a third devoted to parts and labour costs. So it makes about $3,300 profit on each watch and pays NO TAX because it is considered a charity . Now Flipper's are willing to buy that $10,000 watch for $12,000 from n AD and know they can flip it for $16,000 or more on the Grey market. That is ROLEX in a nutshell.

My Apple Watch SE i bought for $180🥴

It’s just to see the tile people!!

Grey watch market bubble is about to burst.

My father wears a Rolex watch. I don’t wear a watch or jewelry now. Every device I own has a front-facing clock, so I can’t imagine ever needing or wanting a watch.

Cuz they have more money than sense. Same with sneakers, games etc. At least with things like real estate . necessity comes into play.

There are KZfaq channels of greasy NY jewelry district guys flipping these all day. Hard to understand how they are scarce when it seems most buyers are flippers.

Buying a used Rolex watch is like buying an engagement ring from the pawn shop vs James Allen.

The fact that you can’t walk in to Rolex to buy a new one, even if you have the money

Rolex Authorised dealers are selling the watches to the grey market themselves, that's why they are not in the shops. ADs have in effect become scalpers. If you buy a Rolex nowadays, you've been had. Hard.

So the answer is Rolex “can’t make them fast enough” and scalpers 👍. Basically groups with money and connections are cornering the market by buying out dealer stock and moving them to resale markets.

Scarcity by design, they have plenty of non desirable watches, they just know how to make certain ones more desirable and they keep their numbers lower.

Let's houp that this practices will help Rolexe image to grow, not to blow ☝️

The first guy 😆

new costs 14,800 and a year or 10 old one cost double but you get it instantly

All right. I’ll sell you my Casio