Why is Rolex Getting More Expensive During COVID-19?
COVID-19 has left an impression on just about everyone. It’s hard to think of any sector of the populace that hasn’t been affected in some way. With the pandemic projected to continue for some time, the process of getting the economies of nations as well as household budgets back to something that’s recognizable won’t be easy.
What may surprise some is that there are some goods and services that are doing quite well during the pandemic. Luxury watches like Rolex are a prime example. Why is Rolex managing to hold up when there are many other companies folding or are about to fold? Here are some thoughts that may help you understand.
The Surging Value of Gold
It’s no secret that Rolex uses a lot of higher-quality gold in the creation of their watches. What you may not know is that gold futures tend to perform well in many types of downward sloping economies. Gold has demonstrated this ability during periods of wartime, recessions, depressions, and just about any type of economic market that one can imagine. The price of gold even held up well during the influenza pandemic of 1918 and the less severe one in 1968.
To say the economies of many nations are unsettled today is an understatement. The impact on holdings like certain stocks, bonds, FOREX trading, and other opportunities is significant. In the midst of all this, gold continues to hold in some markets while it thrives in others. This one factor alone can account for why people remain interested in owning gold Rolex watches during a pandemic.
A Desire for Assets That Perform Well During Tough Economic Times
Some investments are holding while others are losing value and will continue to do so until there are vaccines released and most people choose to take advantage of them. While there are some investors who can afford to hang onto those investments for another year, others cannot sustain the losses and are choosing to sell short now. They’re using that money to purchase something else that will maintain value or possibly grow a bit while the pandemic runs its course.
Gold jewelry, including gold Rolex watches, fit in with what those investors want to accomplish. History indicates the watches will keep their value and incrementally increase in worth over the next year or so. That’s much better than watching assets lose value that may or may not return after the current crisis is over.
Owning Something That’s Viewed as Stable and Reliable
It’s not just about the history of gold and it’s proven performance during hard economic times. There’s also the perception of gold perpetually being valuable. Even among those who don’t consider themselves to be investors, gold has this type of reputation.
Now consider the perception of the general populace when it comes to Rolex. Even people who have never heard of many of the popular luxury watch brands easily recognize the Rolex came. To them, it stands for quality as well as value.
During a time when so many things seem uncertain, a Rolex watch can serve as a symbol that some things remain stable and reliable even during a crisis. After all, the brand was around during world wars and other pandemics. It still managed to continue. For people who need something – anything – to help them stay the course and not give up, having a Rolex to take out and look at now and then can be quite a comfort.
Interest Rates and Financing the Purchase of Rolex Watches
One of the strategies used in many nations to help stabilize economies during the pandemic is putting a cap on interest rates. That includes lending rates for financing purchases. Depending on where the buyer lives, that cap could make buying a Rolex possible.
Obtaining a loan, especially to buy something that’s likely to appreciate in value, is smart business right now. Lenders are likely to consider secured loans used to purchase Rolex watches as being less of a risk. That also means the interest rates on those loans are likely to be more competitive. For those with the resources to make the deal, now is an excellent time to enter into this type of investment.
Normality in the Midst of Uncertainty
Along with a sense of security, Rolex watches also provide some sense of continuity and normality in a time when things are unsettled. People can look at their Rolex watches and have a feeling that not everything will be different once the pandemic is history; some things that were normal before will be normal again.
That can be especially important to people who’ve had to make significant adjustments in how they think, live, work, and socialize since COVID-19 spread around the world. Even as they continue to revise how they do things as circumstances change, there’s this one little area of their lives that remain the same. In some ways, owning a new or used Rolex serves a touchstone that keeps people grounded.
Online Shopping During a Pandemic
Shopping online was already growing in popularity before the advent of COVID-19. Even as the economy begins to open up in areas where the number of cases has decreased, many people are still relying on the Internet to manage many types of purchases. It should come as no surprise that this extends to luxury purchases as well as basic goods.
One quick Google search for Rolex will yield more than 159,000,000 results in less than a second. Many of the highest-ranked results will be for jewelers and other dealers who have new and used Rolex watches for sale. People who may have thought such watches were out of their financial leagues before are finding good deals online and choosing to treat themselves.
Diverting Funds Toward Purchasing Luxury Watches
Since the beginning of the pandemic, how people use their discretionary income has changed. It’s not that hard to figure out what’s driving the change. Past diversions like going to movies, out to clubs, eating in restaurants, and other activities are either severely limited or may not be available at all. Some expenses are also lessened, especially for those who use to wear business attire in the workplace but find that unnecessary while working at home.
With more money left over at the end of the month, some people are beginning to realize that owning Rolex watches won’t be so difficult after all. It may be possible to purchase one that’s several thousand dollars USD after saving money that once went for other activities for a few months. In the meantime, it’s fun to shop around and find a reputable online dealer who carries designs that pique the interest of the buyer.
Maintaining Hope for the Future
Along with all the other things that buying a Rolex during a pandemic can symbolize, that watch can serve as a sign of hope. There’s the hope that people, cities, and nations will recover and maybe even emerge from the pandemic stronger than they were before. There’s the hope that the good things in life will continue while some of the less desirable aspects of culture will not make it through. That hope may be personal, community minded, or apply globally. In all cases, little things like gold watches that continue to be of value point toward the promise of things to come.
These are only some of the reasons why Rolex and other luxury watch brands are continuing to thrive during the pandemic. There are likely others that may apply to you or to people living in the area where you reside. If you haven’t already, consider what investing in a Rolex could mean to you now, and what it could mean for your in the years to come.