Rolex Appreciation Beat Other Investments Over Past Decade
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Rolex Appreciation Beat Other Investments Over Past Decade

Why invest in the stock market when you can invest in your wrist.

By Laurie Kahle
Wed, Feb 2, 2022 10:07amGrey Clock 3 min

With 10 years of sales data to draw from, the team at Bob’s Watches, an e-commerce retailer of pre-owned Rolexes and luxury watches, analysed how Rolex values have performed in the secondary market over the past decade compared to stocks, bonds, real estate, and gold. When the results came in, Rolex watches outperformed them all.

“We were surprised by how much the values have appreciated,” says Paul Altieri, founder and CEO of the California-based Bob’s Watches, during a recent interview, noting that few online sources have access to a full decade’s worth of sales data. “We were hoping to come up in the top three, so we were happy that it was number one.”

Evaluating percentage increases for gold and real estate, based on inflation-adjusted values for gold from macrotrends.net and median sales price data for houses sold in the U.S. from the Federal Reserve Economic Data (FRED) database, Rolex watches significantly outperformed both.

When it came to the Dow Jones Industrial Average, based on values from macrotrends.net, returns were comparable over the decade, but Rolex produced significantly higher appreciation percentages over the past five years.

According to the data, the average price of a used Rolex watch rose from less than US$5,000 in 2011 to more than US$13,000 by the end of last year. Intriguingly, the appreciation of Rolex watches since the beginning of the pandemic in early 2020 is nearly equal to the total price increase over the preceding five years.

“Demand is driving that, of course, inflation as well—but inflation only accounts for maybe 20%,” Altieri says. “The vast majority is overwhelming demand. Supply has been constrained and demand just keeps surging globally.”

He added that strong economic growth around the world, and particularly in China and elsewhere in Asia, over the past five years has also helped drive up values.

“Rolex has been a huge benefactor. I would say the same for Omega, Patek Philippe, and Breitling. A lot of brands have had tremendous success the last 10 years, especially the last five, and Rolex is certainly at the top of the list.”

Bob’s Watches also evaluated appreciation by Rolex model. Not surprisingly the brand’s purpose-built sport and tool watches account for eight of the top 15 reference numbers (including the top three positions). While the stainless-steel Submariner 16610 is the single best-selling Rolex reference over the past decade and its two-tone steel-and-gold sibling Ref. 16613 comes in second, Daytona is number one when it comes to the highest-appreciating model with an average pre-owned price topping US$30,000 last year.

“Daytona has always had a broader appeal, a stronger demand,” Altieri explained. “There is at least a five-year waitlist to purchase the new Daytona at retail. It’s a more complicated watch and it has always been a popular model with a higher value.”

As an example, he cites the Ref. 116500 Daytona with a white dial, which sells for around US$38,000 in the secondary market when the official retail price is about US$13,000. “That is the ultimate example of demand and supply being out of sync with each other,” he says.

To illustrate the dramatic shift that has taken place, he said that when Bob’s Watches entered the market in 2010, prices for pre-owned watches typically ran 25% to 40% below full retail in a store. Now, for some models, the pre-owned prices are dramatically higher than retail prices, because those new hot-ticket models are so hard to come by in a store.

Altieri points out that the imbalance has been growing over the last five to 10 years, and he doesn’t predict a correction any time soon. “I don’t see Rolex increasing production substantially to satisfy demand, so quantity will remain limited,” he says, adding that Omega is also surging in demand with unit sales almost doubling last year compared to 2020.

“Watches as a category are really popular today and growing,” he says. “Barring some major recession, I don’t think you will see any change. I know it seems unsustainable, like a bubble, but I just don’t see it changing.”

Reprinted by permission of Penta. Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: February 1, 2022.



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The Uglification of Everything

Artistic culture has taken a repulsive turn. It speaks of a society that hates itself, and hates life.

By Peggy Noonan
Fri, Apr 26, 2024 5 min

I wish to protest the current ugliness. I see it as a continuing trend, “the uglification of everything.” It is coming out of our culture with picked-up speed, and from many media silos, and I don’t like it.

You remember the 1999 movie “The Talented Mr. Ripley,” from the Patricia Highsmith novel. It was fabulous—mysteries, murders, a sociopath scheming his way among high-class expats on the Italian Riviera. The laid-back glamour of Jude Law, the Grace Kelly-ness of Gwyneth Paltrow, who looks like a Vogue magazine cover decided to take a stroll through the streets of 1950s Venice, the truly brilliant acting of Matt Damon, who is so well-liked by audiences I’m not sure we notice anymore what a great actor he is. The director, Anthony Minghella, deliberately showed you pretty shiny things while taking you on a journey to a heart of darkness.

There’s a new version, a streaming series from Netflix, called “Ripley.” I turned to it eagerly and watched with puzzlement. It is unrelievedly ugly. Grimy, gloomy, grim. Tom Ripley is now charmless, a pale and watchful slug slithering through ancient rooms. He isn’t bright, eager, endearing, only predatory. No one would want to know him! Which makes the story make no sense. Again, Ripley is a sociopath, but few could tell because he seemed so sweet and easy. In the original movie, Philip Seymour Hoffman has an unforgettable turn as a jazz-loving, prep-schooled, in-crowd snob. In this version that character is mirthless, genderless, hidden. No one would want to know him either. Marge, the Paltrow role in the movie, is ponderous and plain, like a lost 1970s hippie, which undercuts a small part of the tragedy: Why is the lovely woman so in love with a careless idler who loves no one?

The ugliness seemed a deliberate artistic decision, as did the air of constant menace, as if we all know life is never nice.

I go to the No. 1 program on Netflix this week, “Baby Reindeer.” People speak highly of it. It’s about a stalker and is based on a true story, but she’s stalking a comic so this might be fun. Oh dear, no. It is again unrelievedly bleak. Life is low, plain and homely. No one is ever nice or kind; all human conversation is opaque and halting; work colleagues are cruel and loud. Everyone is emotionally incapable and dumb. No one laughs except for the morbidly obese stalker, who cackles madly. The only attractive person is the transgender girlfriend, who has a pretty smile and smiles a lot, but cries a lot too and is vengeful.

Good drama always makes you think. I thought: Do I want to continue living?

I go to the Daily Mail website, once my guilty pleasure. High jinks of the rich and famous, randy royals, fast cars and movie stars, models and rock stars caught in the drug bust. It was great! But it seems to have taken a turn and is more about crime, grime, human sadness and degradation—child abuse, mothers drowning their babies, “Man murders family, self.” It is less a portal into life’s mindless, undeserved beauty, than a testimony to its horrors.

I go to the new “Cabaret.” Who doesn’t love “Cabaret”? It is dark, witty, painful, glamorous. The music and lyrics have stood the test of time. The story’s backdrop: The soft decadence of Weimar is being replaced by the hard decadence of Nazism.

It is Kander and Ebb’s masterpiece, revived again and again. And this revival is hideous. It is ugly, bizarre, inartistic, fundamentally stupid. Also obscene but in a purposeless way, without meaning.

I had the distinct feeling the producers take their audience to be distracted dopamine addicts with fractured attention spans and no ability to follow a story. They also seemed to have no faith in the story itself, so they went with endless pyrotechnics. This is “Cabaret” for the empty-headed. Everyone screams. The songs are slowed, because you might need a moment to take it in. Almost everyone on stage is weirdly hunched, like a gargoyle, everyone overacts, and all of it is without art.

On the way in, staffers put stickers on the cameras of your phone, “to protect our intellectual property,” as one said.

It isn’t an easy job to make the widely admired Eddie Redmayne unappealing, but by God they did it. As he’s a producer I guess he did it, too. He takes the stage as the Emcee in a purple leather skirt with a small green cone on his head and appears further on as a clown with a machine gun and a weird goth devil. It is all so childish, so plonkingly empty.

Here is something sad about modern artists: They are held back by a lack of limits.

Bob Fosse, the director of the classic 1972 movie version, got to push against society’s limits and Broadway’s and Hollywood’s prohibitions. He pushed hard against what was pushing him, which caused friction; in the heat of that came art. Directors and writers now have nothing to push against because there are no rules or cultural prohibitions, so there’s no friction, everything is left cold, and the art turns in on itself and becomes merely weird.

Fosse famously loved women. No one loves women in this show. When we meet Sally Bowles, in the kind of dress a little girl might put on a doll, with heavy leather boots and harsh, garish makeup, the character doesn’t flirt, doesn’t seduce or charm. She barks and screams, angrily.

Really it is harrowing. At one point Mr. Redmayne dances with a toilet plunger, and a loaf of Italian bread is inserted and removed from his anal cavity. I mentioned this to my friend, who asked if I saw the dancer in the corner masturbating with a copy of what appeared to be “Mein Kampf.”

That’s what I call intellectual property!

In previous iterations the Kit Kat Club was a hypocrisy-free zone, a place of no boundaries, until the bad guys came and it wasn’t. I’m sure the director and producers met in the planning stage and used words like “breakthrough” and “a ‘Cabaret’ for today,” and “we don’t hide the coming cruelty.” But they do hide it by making everything, beginning to end, lifeless and grotesque. No innocence is traduced because no innocence exists.

How could a show be so frantic and outlandish and still be so tedious? It’s almost an achievement.

And for all that there is something smug about it, as if they’re looking down from some great, unearned height.

I left thinking, as I often do now on seeing something made ugly: This is what purgatory is going to be like. And then, no, this is what hell is going to be like—the cackling stalker, the pale sociopath, Eddie Redmayne dancing with a plunger.

Why does it all bother me?

Because even though it isn’t new, uglification is rising and spreading as an artistic attitude, and it can’t be good for us. Because it speaks of self-hatred, and a society that hates itself, and hates life, won’t last. Because it gives those who are young nothing to love and feel soft about. Because we need beauty to keep our morale up.

Because life isn’t merde, in spite of what our entertainment geniuses say.

 

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This stylish family home combines a classic palette and finishes with a flexible floorplan

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