Sometimes this RM currency depreciation is an excuse for pre-own shop vendors to increase their price wantonly. Recently a 2nd Hand Shop wanted to sell a 12 year old Submariner at RM18k. He said "if you come 1 month earlier it was RM16k, but now because of the Ringgit depreciation the price is RM18k." Let's do the math..... RM2k / RM16k = 12.5% increase in price. Did our Ringgit drop by 12.5% in one month?
Back to Rolex being an investment. I am quite a newbie so no real experience flipping watches. But from researching on the price the last few months, I see that the 2nd hand sale price is only close to what the owner paid for it MRSP 10 years ago (maybe 80% of MRSP price?). Only VERY RARELY that the Owner can recoup the original MRSP price or make a small profit (I am only generalising. Of course there will be exceptions. And I am not talkig about vintage pieces here).
So how can that be a GOOD Investment? At best, you can say that you have worn and enjoyed a rolex for 10 years for free or for a very small sum of money (some call it a rental for 10 years). If you put RM18k into FD 10 years ago, now you have close to RM24k? (for easy calculation I did not compound the interest). So your loss is actually the 2nd hand sales depreciation amount + loss of FD interest.
But of course that is better than other items depreciating to next to nothing for eg handphones, cars, etc.
But if you decide to buy another new Rolex, the sales proceeds of the earlier watch will only help a little towards payment of your new rolex cause the new prices have skyrocketed. So it begins all over again. LOL!!
So don't wait to buy. Buy it now! and forget about it being an investment. I wonder if one day the Rolex Bubble would burst? Just like ArchieLuxury claims in one of his youtube videos.
