Rolex is one of the most famous Swiss watch brands in the world, often seen on the wrists of businessmen, athletes, and celebrities alike.
While many people aim to own a Rolex watch, wearing a timepiece from this prestigious brand comes with a price. Both retail and secondary market prices can easily be in the five to six digits.
But there is solid reasoning behind those hefty numbers.
While new watch enthusiasts may not fully understand the premium attached to these watches, multiple factors contribute to the high value of a Rolex. Where some luxury brands just slap a brand name or logo on an item to quadruple pricing, Rolex has solid reasoning behind their price point.
In this blog, we will break down exactly why Rolex watches are so pricey, and if those prices are worth paying.
Rolex Uses Top-Quality Materials
Rolex watches are known as investment pieces, something that can be passed down for generations to come. It is only logical that, in order for a watch to become an heirloom and last for decades, it must stand the test of time.
Starting in 1985, Rolex became the first watchmaker to use 904L "Oystersteel," a switch that was made with durability in mind. While most other watch brands used and continue to use 316L steel, Rolex chose to upgrade to Oystersteel for its resistance to corrosion and pitting.
It is a steel that is built to last, all while having the ability to maintain a high-gloss finish.
Furthermore, Rolex even casts their own 18-karat gold alloys at their in-house foundary. This allows for them to ensure that the gold they use maintains the highest purity.
This dedication to quality, naturally, incurs a premium.
Rolex Rigorous Chronometer Movement Testing
Rolex is famous for their excellent craftsmanship.
They are famous not only for having the best material, but also for the inner movements of their models.
When a Rolex watch is created, from start to finish, the watch is tested for accuracy (read more on Superlative Chronometer Officially Certified).
Only about 6% of Swiss watches pass or undergo the COSC testing, as it is rigorous and expensive to do. But passing this testing means that Rolex gets the "chronometer" stamp of approval.
The creation of a model can take up to a year thanks to Rolex's dedication to quality.
Once approved, parts are assembled, by hand, by Rolex's trained watchmakers.
Rolex Watches Are Made with Professionals in Mind
Aside from regular strict testing, Rolex sport models undergo testing for their intended wearer, like Rolex models meant for divers or scientists.
These undergo even more strict testing during their creation.
Take for example the Rolex Sea-Dweller or Submariner.
Dive models undergo extreme water pressure tests in hyperbaric tanks, condensation tests, and thermal shock tests to ensure that these models can withhold dives. Rolex even partnered with diving companies to perfect their dive-ability.
This obsessive attention to detail yields a level of perfection that few other brands can match, and that is naturally reflected in its price.
Rolex's Supply and Demand
Engineered scarcity is another factor behind Rolex’s cost.
The company produces around one million watches per year, which is far below global demand.
Authorized dealers are, in turn, also only given very limited stock of each model. As a result, popular models like the Daytona, GMT Master II, and Submariner often have multi-year waitlists.
This scarcity and controlled supply and demand by Rolex means that each watch's value is high, and many even increase once they're taken out of the store.
Therefore, the secondary market for many high-demand Rolex watches often doubles or triples its value.
Take for example, the Rolex Daytona "Panda" 126500LN retails for only $16,000 but has a market value that ranges from $35,000 to $36,000!
This imbalance drives many buyers to pay well above retail on the secondary market, and by tightly controlling supply Rolex maintains an exclusivity that keeps prices high.
Is Rolex Worth the Price?
The expense of a Rolex reflects much more than hype or prestige.
It is a culmination of top-tier materials, near perfect craftsmanship, limited supply, and strong resale value.
This unique blend of factors is why Rolex can command such high prices—and why collectors worldwide continue to deem these watches worth the cost.
