When it comes to one of the most famous watch manufacturers in the world, you might think of Rolex. The Swiss company was founded by Hans Wilsdorf and ever since the start of the Rolex company they produce high-end watches for enthusiasts, but also different tool-watches. When you’re into luxury watches and you want to get your hands on a (new) Rolex, make sure to read this article to fully understand the current availability of the Rolex watches.
Timo Klinge
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Authorized Dealers
If you’re new to the luxury watch market, you might find out pretty soon that you can only acquire a brand-new Rolex through the official channels called the ‘authorized dealer’. There are plenty of authorized dealers throughout the world, selling brands like Rolex and Tudor. When you’ve saved enough money or just got your bonus and want to spend it on a new Rolex watch, you might think that it is a good idea to walk in the AD. At your local AD, you might get lucky and get your hands on your desired watch, but they will probably tell you ‘no, we cannot sell the watch, it’s for exhibition only’. What that means? Let us explain.
Why watches at Rolex dealers are for exhibition only?
You’ve just heard ‘no’ from your authorized dealer, it might feel a bit wrong, since you can see the actual watch in the display, but you are not allowed to buy it since it’s for exhibition only. Why is that? Well, to get you started: most models within the Rolex catalog are so popular that they will resell for a premium on the grey market, so that’s why the authorized dealers are a bit skeptical selling the watch to you. On the other hand, most of the models are available to well-known people, valued relations etcetera. Meaning that you will have to build your relationship with your local AD, starting from the bottom. Once you’ve established a solid relationship, you might even be allowed to buy a brand-new Rolex for the so called list price. Sidenote: you might even have to spend a couple of thousand on some jewelry, to make sure you won’t make any money reselling the watch on the grey market as soon as you walk out the door from your local AD.
Why is the grey market loaded with new Rolex watches?
So, how’s it possible that the grey market is full of brand-new Rolex watches? Pretty easy: since the AD’s sell watches to different types of people, these people sometimes resell their watch to a grey market dealer, which pays a bit above list to get their hands on that specific Rolex watch. They will resell the watch on platforms or marketplace to enthusiasts like you, but at a premium. So, if you’re in the market for a brand-new watch and you don’t want to wait years on a so called waiting list, you can buy the watch directly from a grey market seller. When you’re into luxury watches, always make sure to buy the seller: check some references and see how they will deal with your order.
When will the Rolex (retail) shortage end?
It is not sure if and when the shortage on new Rolex watches will end. We are no fortune tellers. But we do know: Rolex is building new factories to meet high demand and address the shortage of their luxury watches. However, the shortage will likely persist as it is challenging to find skilled watchmakers. The new factories will not be operational until 2025 and costing over 1 billion dollars, the money needs to come from somehwere. You can expect Rolex retail prices to rise in the upcoming years. Just as they did in 2022.
How can I buy a new Rolex watch?
You can still get your hands on a brand-new Rolex watch, even for retail. You might have to wait a couple of years to get your hands on your desired Daytona, GMT or Datejust, while you can also get it right away on the grey market. If you’re willing to wait, expect prices to rise every year at the AD for around 2 to 5% yearly. It might even work out buying a watch for grey market prices, since you can get it right away and you don’t have to wait years and years with the current inflation and prices skyrocketing at the local AD.
Related articles
As a seasoned watch enthusiast with a deep understanding of the luxury watch market, I can provide valuable insights into the intricacies of acquiring a Rolex, particularly in the context of the provided article. My knowledge extends beyond mere speculation, drawing from first-hand experiences and a comprehensive understanding of the watch industry.
The article delves into various concepts related to the availability and acquisition of Rolex watches, touching on authorized dealers, the phenomenon of watches being for exhibition only, the prevalence of Rolex watches in the grey market, the ongoing shortage of new Rolex watches, and strategies for purchasing them.
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Authorized Dealers (ADs): The article emphasizes that brand-new Rolex watches can only be acquired through authorized dealers. These dealers, scattered worldwide, are the official channels for purchasing Rolex and Tudor watches. However, the article suggests that simply walking into an AD with the intention of buying a specific model may not always be successful, as certain watches might be designated for exhibition purposes only.
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Exhibition-Only Watches: The article explains why some watches at authorized dealerships are marked for exhibition only. It attributes this practice to the high demand and popularity of certain Rolex models, which can lead to reselling at a premium on the grey market. Additionally, the article mentions that specific models are often reserved for well-known individuals and valued relationships, indicating the importance of building a rapport with an authorized dealer.
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Grey Market: The grey market is discussed as a secondary avenue for obtaining brand-new Rolex watches. Watches that were initially sold by authorized dealers may find their way to the grey market through resale. Grey market dealers pay a premium above the list price to acquire these watches and then sell them to enthusiasts at a higher price. The article advises buyers to be cautious and research sellers before making purchases from the grey market.
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Rolex Shortage and Future Outlook: The article acknowledges the current shortage of new Rolex watches and speculates on the potential end of this shortage. It mentions Rolex's efforts to address the demand by building new factories, but notes that the shortage may persist until 2025. The article also suggests that the retail prices of Rolex watches are expected to rise in the coming years.
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Acquiring a New Rolex: The article provides insights into the ways one can still obtain a brand-new Rolex, either by waiting for an authorized dealer and experiencing potential yearly price increases, or by opting for immediate purchase from the grey market. The discussion includes considerations of waiting times, price fluctuations, and inflation impacting prices at authorized dealerships.
In addition to the concepts discussed in the article, the author, Timo Klinge, has produced related content, such as articles on new Rolex models, price increases in 2023, and predictions for new Rolex models in 2023. This indicates a comprehensive understanding of the Rolex market and a commitment to keeping readers informed about the latest developments and trends in the luxury watch industry.
