Luxury "Investments".

The numbers to justify the purchase.

Rolex has released their yearly pieces that you can’t buy from their Authorised Dealers.

No, you CAN NOT buy the watch YOU want at a retail price from the AR.
Stop dreaming or pretending.

You will have to buy resale, aka the Grey Market (GR).

To buy the Rolex you want, you must belong to a preferred client list.
How do you become a preferred client?
You buy the watches you don’t want to be placed on a waiting list.
This waiting list provides a possibility of being able to buy the watch you want.

Is that worth it? It depends.

Here are the watches you want.

GMT-MASTER II - REF 126710BLNR
RRP: $15,100
GM: $35,000

SUBMARINER - REF 124060
RRP: $12,600
GM: $22,000

Here’s the most cost-effective watch you don’t want at this exact moment that you have to buy to get onto the list to get the above.

DATEJUST - REF 126301
RRP: $19,600
GM: $16,500 - $21,000

Even if you buy the above, there is no guarantee that you will get what you want.
You will go on a waiting list from there.

Let’s do the numbers.

If you’re lucky enough and build enough rapport and can buy the GMT and Submariner by buying the Datejust from the AR.
Total Cost: $47,300

GMT and Submariner from the GM
Total Cost: $57,000.

Great on paper as you get an extra watch and save $700.
Reality = Slim.

There isn’t enough stock, and there are clients that are more preferred than you if you’re just beginning your journey.

It would be best if you chose your battle here.
How many Rolexes are you buying in your lifetime?
It might make sense if you think that number is at least 3-5.

How do I know about the above?
While on a preferred client list for the Submariner I received a call advising I had one week to pick it up from Melbourne. I couldn’t make it.

I lost it along with my relationship with the AR.
So now, I’m with another Rolex AR, trying to build my relationship there.

You also can’t buy a Rolex from Rolex direct… Not yet at least.

What is the benefit of being on the preferred client list and having the relationship?
Is it worth the investment?

DAY-DATE 40 - REF 228238
RRP: $52,850
GM: $120,000+

It would pay to have an AR relationship here.

Let’s bring up another renowned watchmaker.

Patek Phillipe Nautilis REF 5726/1A
RRP: $61,000
GM: $300,000+

Your friend can 100% not get you one retail.

Ed Sheeran was on a waiting list for 5 years for the now-discontinued 5711.
RRP: $34,893
GM: $200,000 - $1,000,000 depending on the face.

Are watches worth the investment?

Buy what you like.
You should not buy hoping for appreciation.

Realistically, with the hype they have, you will be buying on the already inflated GM if you’re buying what everyone else wants.

Enthusiasts don’t sell. They usually trade to own a more expensive watch than they have or take some cash out on a more cost-effective option that they like.

Investors can afford to buy the watches 10x over.
Watches are a small part of their portfolio or referred to as an emergency fund.

If you’re planning on becoming a GM player. Here’s some inspiration.

Planning on getting your hands on 1-3 watches and just flipping them?
You’re almost as bad as a Hublot.

Schedule a call here if you’d like to talk about including luxury items such as watches in your investment strategy.

Disclosure: All watch choices are my own and Rolex if you’re reading this.
I won’t sell the three that I currently want.