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Is The Rolex Price & Demand Surge All A Bubble?

July 25th, 2022

A lot has been happening in the watch industry recently, and one name that constantly pops up in the headline is ‘Rolex’. The star luxury watch brand has always been a constant in the horological news for its prestige, power and various innovative features. However, lately, collectors and fanatics are focusing on the brand’s investment scope.

Thanks to its respected status, Rolex has a lot of popularity and demand, which inherently makes it a good investment option. Investing in a popular Rolex model fetches a high value when you sell Rolex in the secondary market.

rolex price and demand

However, many are skeptical about all this sudden happening. And honestly, we are too. Is this all a bubble just waiting for the right time to burst? Or is there something more than what simply meets the eye?

So, let’s shed light on the BIG question:

Is the demand for the popular Rolex models like the Submariner, GMT-Master II, Oyster Perpetual or the Daytona a bubble with a crash risk?

Confidence, be it in any matter, is a good thing to have. But your confidence is definitely tested when you pile up all your savings and go up to a seller to buy a Rolex model as an investment. Even for very optimistic people, a straight ‘NO’ or a fumbling ‘YES’ is enough to shake the roots of confidence.

Rolex is a brand that has always enjoyed success in the forum. But various factors like the demand and supply constraints have led to a catch. People have a bizarre craze on steel Rolex watches, creating all the hype around the popular models.

Reasons That Explain the Rolex Hype Bubble

Revenge Expenditure

The time during the COVID-19 pandemic was a nightmare for all. But one trend that came into existence was: Revenge Expenditure. During the pandemic, people couldn’t travel to places for holidays or vacations. What they did instead was indulge in buying a luxury watch.

What followed next was a boom in demand as everybody felt the fear of losing out on their favourite timepieces.

Bubble of Panic

Rolex produces watches in limited numbers. Now, as people suddenly started buying a lot of it, everyone liked to believe there was some kind of urgency or scarcity waiting. This, in turn, elevated the demand.

Does this seem like an apparent bubble of euphoria?

The sheer thought of being unable to get a led to inflation of the prices in the secondary market.

What happens if the Rolex ‘craze’ vanishes overnight?

To answer what happens is a thing of the future. But, we can now answer what might reduce the ongoing craze of Rolex timepieces. Inflation is skyrocketing, and so is the confidence of people to invest in Rolex watches. So far, it is in a balanced state.

But if inflation increases or stays high, choosing between what you want and what you need becomes easier. After a while, you might have to choose between purchasing a Rolex and buying a house. And, you know the answer to that.

Other emotional factors include the return of a COVID-19 break or other climate change effects. When people are not willing to spend money on luxury watches, two things will happen both on the pre-owned market or the authorised dealers:

  • Rolex prices will go down in the secondary market
  • You can once again find the rare/ hard-to-get Rolex watches on the shelf

Is the bubble of euphoria about to burst soon?

Nothing should be over-stretched. For various reasons like unavailability, shortages, long waiting lists, etc., watch buyers are becoming increasingly frustrated with buying Rolex watches from the secondhand market. Most of them are now changing their minds and behaviour as it has become more of ‘enough is enough’.

While there’s still a long way before the buyers put their hands down, the growing rage will definitely affect them.

What is the Rolex Prediction?

Not to disappoint, but chances are that all the frenzy around Rolex watches might end. As everyone is frustrated with their experience, it will soon check the bloated pre-owned market prices. But that doesn’t mean people who have invested in the luxury timepieces will incur a loss.

Rolex prices will never go down beyond a certain limit. This means no matter what turn it takes in the coming months or years; you will always get a satisfying value when you sell your Rolex watches. Maybe you won’t get the huge figure you expected, but definitely a decent value.


Throughout the writing, we have referred to the abnormal surge in Rolex prices and demand as a ‘Bubble’. But, if you look into it, it is all a result of increased demand and low availability. If the manufacturers had produced sufficient timepieces to meet the existing demand, you could have had a different situation altogether.

Unfortunately, that is not going to happen.

Meanwhile, if you want to sell Rolex watches, call the experts on 07828 750705 to get the best value for your Rolex.

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