The Rolex Bubble has Burst
Updated: Apr 18, 2020
Let’s talk about the Rolex Bubble today.
There is more news to suggest that prices may be falling in the used/grey markets at the moment. Whether this is just a market correction or perhaps the burst of the Rolex bubble is up to you. Please base your assessment upon your own research as well as ours.
According to the Youtube channel “Bark and Jack”, the bubble may now have burst. There has been reported discounts on the site, Watchfinder.co.uk, on multiple Rolex steel sports models.
We are referring to the 6-digit model codes here. Models like the Submariner, Batman, Daytona etc.
For example, the used price l of the Batman (1st gen on the Oyster bracelet) has been seen on the internet for £11,875 (down from £14950). The reference code of the model I am referring to here is 116710BLNR. This deal comes with box and papers.
The Batgirl (126710BLNR) is also down to £14875 from about £16750. The Pepsi (126710BLRO) is also on watchfinder for about £15,275.
The panda Daytona (116500LN), however, is still hovering around £23900 (down from £25,750).
What does this information tell us? Well, it could tell us that Rolex demand is slowing down. Consumers may have had enough of paying these ridiculous premiums for stainless steel watches. There are also reports of other waitlist watches in shop windows. Models like the Explorer 1 and the Tudor Black Bay 58. I’m not sure if this proves anything though.
On the other hand, it could just tell us that it’s the Watchfinder bubble that may have burst. Watchfinder is notorious for having the highest used prices in the UK, at a point where it doesn’t really seem like there’s any value left when you buy used. That’s just our judgement anyway.
What we can say is that perhaps the 4 digit reference and 5 digit reference Rolexes are also overvalued at the moment. However, these models are discontinued so Rolex doesn’t have a part to play on the supply side. Our personal advice is not to buy any 6-digit reference steel sports Rolex for at least a year while we wait to see what’s actually happening with these used prices. It does seem that something potentially dreadful is going to happen quite soon.
Why not hire a Rolex watch for an upcoming special occasion? Perhaps this is a better choice if you're not sure about the future value of luxury watches.
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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. Please seek professional advice should you need assistance with your finances.