Quote:
Originally Posted by Voltigeur
It's cool that you have enjoyed your Rolex. And yes, some of them do become more valuable in real terms. But it's hard to get an appreciating asset in a watch:
(1) to take your quote of 2x in 20 years, well, 20 years at 4%, a $ becomes a bit over $2, ie 2x. In real terms the watch has not appreciated.
(2) to maintain the Rolex's value you also spend need to spend money on maintenance (= cashflow < 0 ), so even if you maintain nominal value your real net is < 0
The WSJ had a good article about watches as investments - some definitely pay off (like a PAM 6152, or the 6154 below) but it's more rare than one thinks.
Still, the satisfaction you have obtained from such a fine watch - and it did not lose money in real terms, well, that's an investment, eh!  |
Your right of course but for one thing. I wasn't looking for an investment I was looking for a new watch.
In most cases a watch is like a toaster it performs a function and you buy the one that meets your needs and spend the money accordingly. Having got through several circa £200 watches due to damage over the preceding 2-3 years I found myself needing another one and decided I wanted something that was tough and would last a long time. So I bought the Rolex because it met my needs at the time. The difference was that I never thought for one moment that it would appreciate in value.
If at the time I was looking to invest the money then I wouldn't have bought a watch I would have bought stocks or gold or something. The trick here is the increased value was an unexpected bonus to buying a functional mechanical object which in most cases would result in an immediate and continuing loss of value and I've had 20 years service from it.
In my opinion the best investments are those that not only appreciate but have also given you service and enjoyment and if they're unplanned that is even more satisfying.
Miopyk
