Part 4 [January 2025 Latest] Luxury Watch Current Affairs News: Major Price Increase for Rolex

Introduction: Rolex's huge price hike in January 2025 is a hot topic

How did you all spend the New Year holidays?
Now, in recent years, the prices of luxury watches have been rising year by year, and many brands are frequently revising their list prices (raising prices).
And now, in January 2025, Rolex will implement a major price revision that is said to be one of the largest in its history.
Data analysis revealed some surprising figures, such as "It's common for even stainless steel (SS) models to cost over 2 million yen," and "Solid gold models have increased in price by about 20%."

Background: Why Rolexes are becoming so expensive

Rolex has always been one of the most well-known and valuable luxury watch brands, and whenever it announces a new model, it attracts a lot of attention. However, in recent years, due to the following economic circumstances and brand strategies, the pace of price increases has accelerated.

• Gold prices will soar (surpassing 15,000 yen per gram in 2024)
• Global inflation and rising labour costs in Switzerland
• Increased import costs due to weak yen and strong Swiss franc
• Balancing supply and demand

Prices will be revised twice a year from 2023 to 2024, with the price increase implemented in January 2025 ranging from 5.74% to 19.85%. The biggest increases will be seen in models made of gold and popular sports models such as the Daytona.

Summary of price increases in January 2025: Specific figures and economic factors

The most interesting thing is, "Which models have increased in price this time and by how much?" Looking at the data, the main ones are as follows.

The price of gold is expected to rise by more than 30% at one point through 2024, which has led to an increase in the cost of raw materials for Rolex gold models. This, combined with labor costs, the weak yen, and the strong Swiss franc, has led to the price increase to this extent, according to the analysis.

Rolex price increases from the beginner's and collector's perspectives

Beginner's Perspective

Some people may not understand the idea of ​​spending millions of yen on a watch. In fact, Rolex is known for its durability and asset value among mechanical watches, and the second-hand market is particularly active.
After the price hike, the barrier to entry will be even higher, but some say, "If you're thinking about selling it in the future, the strong resale value of a Rolex is attractive."
If you’re thinking about buying

• Regularly check the stock status of authorized stores and lottery sales
• Consider the second-hand market and parallel import stores
• Compare multiple models based on your budget

From a collector's perspective

Those who already own several Rolexes, or those who are enthusiasts whose collections include other brands (Patek Philippe, Audemars Piguet, etc.), will be interested to see how the market trends will be affected by this price increase.
As the list price rises, the price of used watches also tends to move in tandem, so while the asset value of the Rolex you own increases, buying new models becomes more expensive. In particular, for collectors, the price rise of current models may be an opportunity to become more interested in popular models that have already been discontinued, such as vintage and semi-vintage models, whose prices are relatively stable.
It seems that you will need to keep a close eye on future market prices and movements of the yen to decide whether now is the time to sell or continue holding because there is still room for the price to rise.

Strengthening purchasing rules at authorized stores and the outlook for the second-hand market

Ahead of the price increase in 2025, rules for purchasing from authorized stores have become stricter. As part of measures to prevent resale,

• Same category models cannot be purchased for one year (all models are restricted to 6 months)
• Credit card information and identification required (information shared with authorized retailers)
• Credit card payment in the name of the person in question (cash payment can also be used)
• Check your past purchase history

These measures are beginning to be implemented thoroughly.
On the other hand, in the secondhand and parallel market, there is an increased demand to acquire stock before the price increases, resulting in an unpredictable situation where inventory temporarily runs out or, conversely, premium prices skyrocket.
However, if the list price rises significantly, second-hand prices generally tend to rise as well, so while many people want to "wait and see how things go," they still decide to purchase early.

How do you decide when to buy and sell? With an eye on future market conditions

Now that a big price hike in 2025 is set as the default, you may be wondering, "Should I sell now? Or should I hold on to it?" or "Should I buy now?" The following points are some of the factors to consider when making your decision.

• Global economic trends: Will purchasing power in Asia and Europe decline?
• Exchange rate: If the yen continues to weaken, overseas demand may increase further.
• Model popularity: Classic sports models like the Daytona and Submariner are stable
• Rolex bubble rekindling or correction: Some say it peaked around 2023, but it remains at a high level

People have different opinions, such as "It looks like the price will go up a little more, so it's still a while before I sell," or "I want to buy a used one before the price suddenly rises in January 2025." The optimal solution also differs depending on whether you think of it as an investment or if you want to use it for a long time as a hobby.
When in doubt, we recommend getting estimates from experts or multiple stores and comparing and considering the numbers.

Outlook: How Long Will the Rise in Rolex Prices Continue?

In summary, the Rolex price hike in January 2025 is likely to have a bigger impact than ever before. External factors such as the price of gold and the weak yen are driving the price increase, and Rolex's own strategy to maintain its brand value is also overlapping.
While some buyers say that the prices are "too high, I can't afford it," many sellers feel that "now is our chance to turn our assets into cash."
However, the reason why Rolex has such a strong presence is because of the fact that demand from all over the world has not declined. Although the market has calmed down compared to a while ago, it will continue to be a must-have for watch enthusiasts.

Finally, it is very important to catch information about major price changes as soon as possible and make the best decision depending on the situation .
In particular, if you are looking to buy a popular model at an authorized dealer, be aware of the strengthening of purchasing rules and expand your options to include the second-hand and parallel markets. Also, if you are considering selling, it is a good idea to get an appraisal from an expert or a store with a good track record to see if you want to wait until the market price rises.