Would buying a Rolex watch be a good idea?

BetterThanThou · 11-05-2014 08:10PM #1

I'm 17 years old, in the next few months, I'm expecting to have a fairly sizable sum of money. After purchasing some necessities and using the money on a holiday, I'm expecting to have a minimum of around 5k left. Truthfully, I don't need that 5k for anything, there's no rational way I can think of spending it. And I feel if I just keep it in the bank for when I could possibly need it, I'll probably end up just taking small chunks out of it for small things, until I'm left with nothing and have gained nothing significant from it. I thought of an idea. For a long time, I've wanted a Rolex watch, I've always wanted a truly nice luxury watch, and Rolex watches have a beautiful simplicity and perfection about them that I just don't think any other watch has. 5k, maybe a little more, should be able to get me a low range Rolex, there's many models I'd like in my price range. However, it's hard for me to justify spending 5k on a watch, but then I was thinking. If I bought a Rolex and kept it in good condition with the box and the papers, it would supposedly not lose much of it's value. And then I could sell it in the future if a time came that I needed the money. Am I correct? Or is that just an excuse people use to justify buying them?

Mredsnapper · 11-05-2014 08:18PM

BetterThanThou wrote: »

I'm 17 years old, in the next few months, I'm expecting to have a fairly sizable sum of money. After purchasing some necessities and using the money on a holiday, I'm expecting to have a minimum of around 5k left. Truthfully, I don't need that 5k for anything, there's no rational way I can think of spending it. And I feel if I just keep it in the bank for when I could possibly need it, I'll probably end up just taking small chunks out of it for small things, until I'm left with nothing and have gained nothing significant from it. I thought of an idea. For a long time, I've wanted a Rolex watch, I've always wanted a truly nice luxury watch, and Rolex watches have a beautiful simplicity and perfection about them that I just don't think any other watch has. 5k, maybe a little more, should be able to get me a low range Rolex, there's many models I'd like in my price range. However, it's hard for me to justify spending 5k on a watch, but then I was thinking. If I bought a Rolex and kept it in good condition with the box and the papers, it would supposedly not lose much of it's value. And then I could sell it in the future if a time came that I needed the money. Am I correct? Or is that just an excuse people use to justify buying them?

Certain Rolex sports models have gone up in recent years but that is no guarantee that their prices will continue to rise. I wouldnt recommend buying one as a financial investment.

BetterThanThou · 11-05-2014 08:24PM

Mredsnapper wrote: »

Certain Rolex sports models have gone up in recent years but that is no guarantee that their prices will continue to rise. I wouldnt recommend buying one as a financial investment.

I'm not planning on buying one so much as a financial investment, more just so I can't blow the money on meaningless crap. For instance, if I paid 5000 for a Rolex, I'd be happy to sell it at a loss if the need came, I'm just not sure if it would be a bad idea if the watch could potentially lose a huge chunk of it's value.

Wibbs · 11-05-2014 08:25PM

What I know about Rolex is slight as they never really appealed to me for some reason. I think they're like Porsches, fantastic products, but you either get them or you don't. Don't like 911's either. I'm odd.

However if there is such a thing as an "investment" watch they would be one(Patek another). If I was in the market for a Rolex I'd do two things off the bat; 1) do a lot of research as there are so many models even in the last decade and 2) I'd buy secondhand. Secondhand means more choice and a higher level model for your price range and it means depreciation has already taken its chunk. ... though... If I had 5 k to spend, I'd likely look at buying two or three iconic type watches.

But as I said I'm not so up to speed on Rollies so no doubt better counsel will be along to steer you right.

By the by, a luxury watch is rarely a rational choice. That's what I love about them. It's what you want that matters. Good luck with your task. Don't be too surprised if one watch isn't enough...

Deagol · 11-05-2014 08:27PM

Probably not as exciting as buying a 5K Rolex, but have you thought of locking the money into a 10 year investment bond or something? That way you'll not be able to take small chunks out of it and in 10 years you'll have a nice lump of cash waiting for you.

Deep Thought · 12-05-2014 07:14AM

I thinking the same as above...Put the cash away for the moment

at 17 as you say , you cannot see anything you need the money for, but who knows whats around the corner

At least for a couple of years...

and then think about what you wanna do

teenage years is a time of chaos and turmoil....by putting the cash away, at least you have some backup.

Menas · 12-05-2014 07:34AM

My advice to you would be to put the money away somewhere that you cannot touch it. The 10 year investment thing is a good idea.
When you are 27 there will be lots of things you will want some serious money for and it will be something to look forward to.

Rolex's are not my thing, aside from admiring the engineering that go in to them.

But as a 40 something I can tell you that I wish I had been wiser with my money when I was a young gun!

Do the boring thing OP, put the cash away!

daveohdave · 12-05-2014 07:42AM

Deagol wrote: »

Probably not as exciting as buying a 5K Rolex, but have you thought of locking the money into a 10 year investment bond or something? That way you'll not be able to take small chunks out of it and in 10 years you'll have a nice lump of cash waiting for you.

This

TimeToShine · 12-05-2014 07:47AM

A 17 year old with a Rolex would be beyond pointless!

Save the money OP, when you start college or move out from home you'll be delighted to have had the foresight to put 5k away for a rainy day.

mondeo · 12-05-2014 11:22AM

Personally I think you should keep that 5k and put it towards collage or something abit more sensible. I do think it is kinda pointless in a 17 year old having a Rolex when your probably gonna need that money for other things. You are 17 and you may use it for traveling or maybe something else. If I was 17 a Rolex would not be on my mind. Keep the money in the bank because you are going to need it.

snaphook · 12-05-2014 01:08PM

You should factor in maintenance costs too. They can be expensive to get serviced so bear that in mind.

OldRio · 12-05-2014 05:48PM

I have a Rolex that my wife bought me for my 50th birthday. Love it.
But locking that cash away would be a better move.

JOSman · 12-05-2014 05:53PM

Don't forget Rolex needs to be serviced now and again at a cost of around €500+. If you have no problem with that, then I'd go for it.:pac:

emo72 · 12-05-2014 06:04PM

none of you guys seem to be putting a value on having a dream watch, even if it is only for a couple of years if he decides to sell it. at least it would be an itch scratched.

you should ignore my advice, i would tend to be less cautious than the sage advisors above. a bond would be wise and sensible.

Mredsnapper · 12-05-2014 06:07PM

The dream is the best part. Far better than actually forking out hard cash;)

The journey is the destination.

hfallada · 12-05-2014 06:13PM

OP unless you are Bill Gates son, a majority of people are going to have a hard time believing its a legit Rolex. Plus the gold ones can be fairly tacky looking IMO. Plus you are going to have to insure it if you plan on wearing it on a nightout

Put your money in a S&P 500 index. On average it increases about 10% per year. Its what Warren Buffet suggests the average person with no financial knowledge to buy. So when you finish college you will have nearly €8,000 to put towards a decent car or a year around the world. Or you could buy the Rolex and it might only be worth €3,500 - €4,000.

Wibbs · 12-05-2014 06:37PM

hfallada wrote: »

OP unless you are Bill Gates son, a majority of people are going to have a hard time believing its a legit Rolex.

Good point. Chances are very high that it will be thought of as a fake, if it's even noticed in the first place and it likely won't be.

Bateman · 12-05-2014 06:43PM

Madness, I am not some oul lad trying to give you the obvious, boring advice, but what I would say is that you should definitely put the cash away (low-cost tracker funds like the one mentioned above are a good safe option).

If you absolutely HAVE to spend the money, travel the world, don't be left sitting there in your mid 30s thinking "I'd have loved to done South America" or something.

Some day when you educate yourself, get a decent job, and manage to save a few quid each month, treat yourself to a fine watch. You'll appreciate it more.

BetterThanThou · 12-05-2014 08:14PM

You guys have a good point, perhaps I should leave buying a Rolex until I have a lot of disposable cash, though, at the same time, I do really want a luxury watch. So I may put some of the money away in some kind of investment like you guys suggested, and spend some of it rest on a watch. I was looking at Tag Heuer watches, which, while not as big as Rolex, do make some nice watches. The main thing I like about Rolex watches is the way that pretty much every last detail of the watch is polished to perfection, compared to a cheap watch, which is clearly churned out as fast as possible, and quality isn't really an issue. Do Tag Heuer watches share this quality with Rolex? Or do they look and feel the same as a €500 watch? I was thinking of possibly buying one in the 1k-1.5k range.

Wibbs · 12-05-2014 09:44PM

OK personal opinion so don't flame me... Now if you ask the average person on the street, yep they'll namecheck TAG as "high end watch", but IMHO TAG Heuer in general are not a luxury brand. Vintage pre TAGs have cache and hold their value, but TAGs generally don't. Again personally speaking even with the pre TAGs I have some doubts, but anyway... I'd peg TAGs as the highest end fashion watch. More advertising than substance. Their best examples are copies/homages[delete as applicable] of their earlier icons, their new designs for me are as dated as rhinestone flares.

Eoin · 13-05-2014 10:34AM

BetterThanThou wrote: »

You guys have a good point, perhaps I should leave buying a Rolex until I have a lot of disposable cash, though, at the same time, I do really want a luxury watch. So I may put some of the money away in some kind of investment like you guys suggested, and spend some of it rest on a watch. I was looking at Tag Heuer watches, which, while not as big as Rolex, do make some nice watches. The main thing I like about Rolex watches is the way that pretty much every last detail of the watch is polished to perfection, compared to a cheap watch, which is clearly churned out as fast as possible, and quality isn't really an issue. Do Tag Heuer watches share this quality with Rolex? Or do they look and feel the same as a €500 watch? I was thinking of possibly buying one in the 1k-1.5k range.

There are a huge amount of real quality watches that sit between mass produced fashion watches and Rolex (which aren't the pinnacle - Seiko make watches that would rival some Rolex ones). For 1 - 1.5K you'll easily get a very nice watch.

If I were you, I'd look second hand - my personal choice for a Tag in that price range would be an older second hand Monaco or Monza. But then I'm over twice your age!

Bateman · 13-05-2014 10:50AM

2nd hand Omega if you absolutely must

Eoin · 13-05-2014 10:56AM

Good call - you'd get a pretty mint quartz Seamaster for that price, maybe an older auto.

Wibbs · 13-05-2014 11:16AM

Eoin wrote: »

There are a huge amount of real quality watches that sit between mass produced fashion watches and Rolex (which aren't the pinnacle - Seiko make watches that would rival some Rolex ones). For 1 - 1.5K you'll easily get a very nice watch.

+1. Rolex are a solid watch, well made and they most certainly have the cache and an ocean of followers and collectors, but many others are as good and quite the number are better.

Good call - you'd get a pretty mint quartz Seamaster for that price, maybe an older auto.

Personally unless it was a Grand Seiko or GP quartz type, I'd probably avoid the quartz option and I say that as someone who would be a huge fan of high end and early vintage quartz. Now if it was one of the 80/90's dual oscillator thermocompensated ETA yokes then OK.

Then again haven't Omega phased out quartz entirely now? If so maybe those older Quartz' may be sought after down the line. One big advantage is in actual use. They're far more robust, far more accurate and beyond the cost of swapping out the battery every couple of years they're significantly cheaper to run.

BillyBoy13 · 13-05-2014 11:24AM

To contradict what everyone else has said, Id be inclined to say go for it. Your young with no bills and the world is your oyster. When you get older like us and have a family/mortgage it becomes that little bit harder to justify buying nice expensive gifts for yourself.

On a personal note, I dont know if Id go for a rolex. There is definitely a stigma or stereotype associated with it. Like when you see 20 year old lads buying brand new BMW's.

If you only just want it to impress people/girls- buy a fake.

If you want it for the workmanship then Id really have a good hard look at the world of watches there are so many manufacturers out there that do fantastic work.

Eoin · 13-05-2014 01:49PM

BillyBoy13 wrote: »

To contradict what everyone else has said, Id be inclined to say go for it. Your young with no bills and the world is your oyster. When you get older like us and have a family/mortgage it becomes that little bit harder to justify buying nice expensive gifts for yourself.

But the OP is asking if it's a good idea from an investment point of view, not if he should just blow his money on a nice watch and not worry about any return.

Otherwise, I'd sort of agree with you - but buy a less expensive watch spend most of that cash on seeing a good bit of the world. That'll be even harder to do when you've commitments than buying a watch.

OldRio · 13-05-2014 04:42PM

Not all Rolex look like bling.

You can buy a Datejust for a couple of grand. Pre owned of course,
understated and gorgeous looking.

Pat Mustard · 13-05-2014 05:19PM

At 17, I could give you a number of reasons not to buy a €5k watch.

First, if you are not careful enough, it could be stolen from you. It could be stolen if you drink too much and fall asleep at a party. That's much less likely to happen at 30. It could easily happen during your college partying years.

Secondly, if you go travelling in a few years, are you going to bring it with you or leave it at home? You could attract unwanted attention, walking along the outskirts of a Brazilian favela, wearing such a watch. If you go diving, do you wear it and test to see if it stands up to the name, or do you leave it on the dive boat? These are not necessarily problems for other people.

If you are going travelling, get a G Shock. It won't break, it'll always work, and hopefully, it won't get stolen. If you don't like G Shocks, many Seikos look really good and are reasonably tough.

Thirdly, I don't want to be a spoilsport. If you really like the watch, get it. But at that money, I'd be quite partial to a Lange & Sohne. As they are ridiculously expensive, it would probably have to be second hand, even at that money! One day perhaps...

BillyBoy13 · 13-05-2014 05:47PM

The Mustard wrote: »

At 17, I could give you a number of reasons not to buy a €5k watch.

First, if you are not careful enough, it could be stolen from you. It could be stolen if you drink too much and fall asleep at a party. That's much less likely to happen at 30. It could easily happen during your college partying years.

Secondly, if you go travelling in a few years, are you going to bring it with you or leave it at home? You could attract unwanted attention, walking along the outskirts of a Brazilian favela, wearing such a watch. If you go diving, do you wear it and test to see if it stands up to the name, or do you leave it on the dive boat? These are not necessarily problems for other people.

If you are going travelling, get a G Shock. It won't break, it'll always work, and hopefully, it won't get stolen. If you don't like G Shocks, many Seikos look really good and are reasonably tough.

Thirdly, I don't want to be a spoilsport. If you really like the watch, get it. But at that money, I'd be quite partial to a Lange & Sohne. As they are ridiculously expensive, it would probably have to be second hand, even at that money! One day perhaps...

Well in fairness, most people who buy expensive watches dont wear them 24/7.

And the OP did say he plans on keeping it in pristine condition along with all the paper work and boxes- so again, that kinda hints he wants a watch that he will only wear on good occasions and then pass down to his kids etc.

Pat Mustard · 13-05-2014 06:04PM

BillyBoy13 wrote: »

And the OP did say he plans on keeping it in pristine condition along with all the paper work and boxes- so again, that kinda hints he wants a watch that he will only wear on good occasions and then pass down to his kids etc.

Different strokes for different folks. I also keep the boxes and the paperwork, but I wear my watches, which take a regular beating, like everything else that I own.

893bet · 13-05-2014 10:41PM

The Mustard wrote: »

Different strokes for different folks. I also keep the boxes and the paperwork, but I wear my watches, which take a regular beating, like everything else that I own.

Amen to that! Can't understand people that only wear on special occasions.

Would buying a Rolex watch be a good idea?

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