😲 Rolex are Increasing Supply ⌚
Updated: Dec 21, 2019
It's astounding to believe that Rolex's lack of communication only makes the world trust Rolex even more. It has topped the Forbes list of the world's most reputable companies for the past two years, beating Lego and Disney into second and third in 2019.
Nowadays, Rolex steel sports models are becoming a bit of an enigma. Are they ever coming back into ADs? Are they true investments or will Rolex one day boost supply to the point where aftermarket prices begin to fall? There is evidence to suggest that the current drought for steel sports watches will begin to ease in about two years' time.
Don't quote us on this, but there is some evidence out there to suggest that this could happening soon. Claims are all over YouTube and the forums - people are claiming to have seen an increasing amount of Rolex steel sports advertisements on billboards. What could this suggest? Well, it could very well mean that Rolex is planning to increase supply at some point. Over the past few years, Rolex have only really been targeting gold and two-tone (Rolesor) models in their advertising campaigns. Models like Day-Dates and DateJusts (particularly women's models) have been at the forefront of the marketing. So, why are they now navigating back to steel sports marketing? Strange.
Check out Rolex's Instagram page and have a look at the last time a steel professional model was mentioned. It was in June 2019 when they pushed the steel Sea-Dweller. To see an even more desirable watch, have a look at the GMT Master II Batman watch that was last featured in March 2019 (due to the Baselworld launch). This is how infrequent steel sports advertising has been in 2019. Any increase moving forward could indicate something amazing is about to happen. Surely we won't actually be able to buy a Rolex Submariner any time soon?
Moving to the supply-side, Rolex's secrecy is around their production plan. The ADs have no idea about what is happening until Rolex informs them. There is evidence that Rolex is increasing production by about 6% per year - or an additional 60,000 watches by estimate. That's potentially a great deal of Oystersteel models that may be coming to market by 2022.
Why might this information be true? Just walk into a Rolex AD and see the number of unhappy salespeople wanting to sell you steel sports models, but are simply unable to do so. Many try to push you into the sale of gold/two-tone models, and seem unhappy about you shrugging them off, asking to be put on the infamous Rolex "waiting list". It seems Rolex have created a culture where the consumer believes that they are buying into an investment, and how that has backfired, as the salespeople can no longer push anybody into precious metals. Instead, a booming grey and used market has emerged.
Is the Rolex supply shortage just a big Ponzi scheme? If so, how long can this last if the ADs are not staying fulfilled and making sales? It appears that the market may no longer support this restriction of supply, and production will have to start to increase to boost Rolex revenue - not because Rolex want to, but because Rolex must in order to survive.
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The points made in this article are merely opinions of WatchVIP and in no way intended to be strict rules for your spending choices. Always seek impartial professional advice should you need assistance with your finances.