Whats your experience with rolex watch? Will it hold value in SHTF? Decrease, increase?
If I remember correctly, you mention in your first book
, but I am traveling and do not have it with me to look up what you said about it.
I have some savings which I am using to purchase precious metal coins. However, in one of the shops, I came across a (genuine) 18k gold ladies oyster perpetual president made in the early 80’s for US $3,800 and it got me to thinking.
1) It is my understanding is that I could walk into any major city in the world and be able to convert it easily into cash.
In your experience, would that be accurate?
I am always on the go—traveling somewhere—both around the US and international. I like the concept of a rolex because its subtle. It is seen as a personal item and would never get counted towards the $10K cash limit.
Since it is an older model, if anyone ever asks about it, I will say it belonged to my grandmother and was passed down to me.
We have problems now in the US with police officers confiscating (stealing) your cash and monetary instruments claiming its suspicious for “drugs” even if you have committed no crime and have never touched a single drug in your life.
As opposed to bullion, it is highly unlikely that a rolex worn on your wrist would ever be confiscated by police or customs.
2) The scrap value of the gold in the watch is only about US $1200 compared to its asking price of $3,800. In terms of holding its value, is it better to stick to bullion coins? Or would it be reasonable to expect that a genuine gold Rolex would hold/increase its value in bad times?
3) I am a single female and usually solo. How much danger am I putting myself in by having and wearing a gold rolex?
I am automatically on “yellow” alert whenever in public, and practice situational awareness at a level much higher than most.
For the time being, I’m sticking to “1st world” countries, although who knows? That could change.
I have done a lot of internet research about this model of watch and the price. Retail price for the same or similar watch in the US right now is between $7,000-$12,000. This caused me to be suspicious of the seller, so I went back and examined the watch closely with gem magnifier, and it is definitely authentic.
I asked the shop owner why this piece is priced so low. He said that most of the merchandise are things he purchased and re-sells. But that this particular piece he is doing on consignment for a friend and she needs the $$.
He confirmed everything I had researched online about how, in the USA, this watch would sell for $7,000 +;
He said that here in Canada (quebec), there just aren’t many buyers for rolex because Canadians don’t have money like Americans do. And that most of his rolex customers are actually Americans who come over the border to make purchases.
Thank you so much for everything you do! Love your stuff, and Im just bummed that I didnt bring your book with me!
In most countries that I’ve been to form USA to Argentina and here in Europe, the advertising seems to be the same: “We buy your gold, silver, diamonds and Rolex”.
You have to keep it mind though that the selling price is nothing like the buying price. In general you are lucky to get half of what a potential customer is willing to pay once the dealer flips the watch. Now if you can get it yourself for such a low price then you could probably sell it elsewhere without losing money or maybe even making some on top.
In general yes, Rolex do hold their value pretty well, same as quality jewellery. The trick is knowing your trade, knowing how to avoid counterfeit items, and of course avoiding the ridiculously low offers you come across sometimes and sticking to serious people.
I was talking with a jeweller today and he was showing me how to grade diamonds, which imperfections are acceptable and which are not. Its all very interesting stuff. Again, the selling price is often not as good as the buying one so you do lose some, but Rolex watches hold on nicely. The nice thing about bullion is that market price is fixed so there’s less room for excuses. Try talking with the shop owner. Ask him, honestly, how much would be pay for a similar item if he was buying so as to get a reasonable profit margin himself. That will give you somewhat of an idea of how much you can get for it.
So, answering your questions.
1)Yes, in most city centers around the world you will be able to sell your Rolex for good money. Some dealers may haggle worse than others but you will walk out with a wad of cash. The trick is buying a quality item, paying as little for it as possible and then asking around to get a good deal when it’s time to sell.
2)For protecting money, I think precious metals is the way to go because as I said before, it has a given market price and there isn’t much to debate about. Pure gold is just that. Watches, antiques and even numismatic coins have a certain value as well and they may well be good investments and ways of moving around a lot of cash. I doubt the average TSA agent knows what a Mercury Dime 1916 D is, but the thing is worth $135,000 in MS67 condition. Having said that, its not as reliable in terms of knowing the specific price as checking the daily given value of gold and silver. The same coin can be worth $100, or $100.000 depending on its grade, and the difference between Fine condition or Very Fine condition can be hard to tell. Even experts may have a difference of opinion. This kind of problem doesn’t exist with precious metals.
3)I would say the risk is pretty high. In a place like Argentina its downright suicidal. I’m not exactly a “soft target”, yet for some time I stopped wearing my gold wedding ring, replaced it for a silver one like lots of other people did back in the day. Now in first world countries this may not be that much of a problem. In most European capitals and large cities you see women with very expensive jewellery. Still, I would say a gold Rolex is pretty noticeable and pretty tempting. In moderate to high crime areas I would keep it out of sight. If you just want to keep it with you then it would just be a matter of being careful and when you know you are in more troubled areas just put it in your purse.
Fernando “FerFAL” Aguirre is the author of “The Modern Survival Manual: Surviving the Economic Collapse” and “Bugging Out and Relocating: When Staying is not an Option”.