Watch collectors and luxury watch buyers know the brand name of Rolex quite well. In fact, Rolex is constantly cited by name as one of the go-to watches in the luxury category. It also pops up first among many brand names on many watch-related websites. Whether you are collecting watches or just like to wear the watches, it looks as though the inflation of 2021 is already being felt in 2022.

The price of a new Rolex watch is going higher in 2022. One serious (yet odd) question is whether Rolex is raising prices anywhere close enough to what they could have.

Collectors Dashboard evaluates high-end collectibles as an alternative asset class. If someone is spending $6,500 (or $10,000 or $20,000+) for a watch, it is definitely capital that could have been invested in stocks and bonds. Do watch buyers get a dividend or get any interest payments with their watch purchases? Not exactly, but…

(Image by Rolex)

Luxury watch buyers can buy their watches at many local specialty and high-end jewelry stores. They can also buy luxury watches at many department stores. On top of eBay’s increased focus on being a watch destination, there are many other online destinations – Chron24, WatchBox, The RealReal and many others.

The drivers behind Rolex prices and the demand for luxury watches are being felt elsewhere. It is becoming common for Patek Philippe and Cartier prices to be sold higher as well.

It may seem unfair to ask if a watch company is raising prices enough. The reality is that 2022 is a year where price hikes are coming in many categories of goods. This is all on the heels of higher input costs, higher transportation and delivery costs, and ultimately those higher labor costs. Simple economic studies with higher input and operating costs yield higher sales prices. And then throw in strong demand, even higher sales prices.

One means of avoiding price hikes on new luxury items is buying second-hand items. This is not unique to watches or other luxury goods. Unfortunately for the buyers, while being a plus for the sellers, is that the price of watches within collectibles has risen. In fact, many watches are now being openly referred to as “investments” and the prices on the secondary market are already significantly higher at some of the above cited online destinations.

Rolex has an increased price that investors of luxury watches have noticed. If you are fortunate as a collector to find one in a storefront you’ve probably noticed the price increase. Rolex has not released an official statement on its site, but Collectors Dashboard has looked to trusted industry analysis for details.

WatchPro has noted that Rolex’s steel Submariner in Oystersteel with no date has jumped in price by 13.3% from $7,900 to $8,950. That comparison was to the older 40mm model as the watch was relaunched in 2020 in a new 41mm style. These are just some of the other hikes that were noted:

• The Batman, Rolex GMT Master II (ref. 126710 BLNR) has risen from $9,700 to $10,550 (+8.8%).
• The Daytona in steel (ref. 116500) is rising from $13,150 to $14,550 (+10.6%).
• The Daytona in white gold (ref. 116519 LN) has gone up by just 2.7% from $29,700 to $30,500.

The Robb Report looked at the issue from a different perspective. A storefront is doubling the price of a new Rolex because the value is already there. Does it seem right that in an age of cryptocurrencies and soaring prices of other collectibles that watch dealers are being responsible. for price hikes?

The Robb Report previously noted in August of 2021 that new Rolex watches were already valued above their retail prices.

What has been happening within the demand and pricing for Rolex is not unique. We have spoken with one retailer a few days ahead of Christmas and the only suggestion we were given for 2022 watch prices was “Higher!”

WatchPro noted in early December that buyers who have missed buying Rolex and Patek are moving to the “next in line” brands. It’s probably not a safe bet that your watch will start paying you a dividend nor that your watch will pay you interest — but even in 2022 it seems as though some buyers and flippers are able to sell for more than they paid.

The old rule about “cash is king” may not apply even in luxury watches during times of higher inflation.