- Watch Reporter
- Posts
- Rolex Day Date 40 in Greatest Danger of -30% Price Drop
Rolex Day Date 40 in Greatest Danger of -30% Price Drop
Rolex Day Date 40 in Greatest Danger of -30% Price Drop
No, this is not yet another article/video on “Rolex price crash”. While Rolex steel sports models are now relatively stable w supply/demand in balance, the same is not true for gold models, like the flagship Day Date 40.
Consider the base yellow gold model #228238, with a retail price of $38,500. There is about $12,000 in profit margin for the dealer. Historically, gold Rolex was harder to sell, and dealers discounted them 25% or more. Those days are coming back. That means the market price of this model will soon be around $28,000. This in turn will drag down prices across the Day Date range. As prices fall, smart buyers will pull back waiting for further price declines - which pushed prices down further. This is the classic market cycle.
Combine the fact collectors have more new and exciting “hype” watches to choose form today than ever. While AP Royal Oak was relatively obscure for mainstream buyers 10 years ago, today it’s the preferred choice. And of course, there are more and more used watches on the market, while the Rolex factory keeps churning out this high profit cash cow.
Bottom line: Expect Rolex Day Date 40 market to decline 25-30% over the next 12 months, and remain “dead money” for years. Check out the video for full analysis.
Livestream TODAY 7:00PM EST: Shah of Iran Watch Collection
The late Shah of Iran was a great watch enthusiast with impeccable taste, decades ahead of his time. Consider the fact he was the first customer to own the Audemars Piguet Royal Oak in 1972, and the Patek Philippe Nautilus - when NOBODY understood or was buying these watches. The Shah was also the man responsible for the creation of the Mercedes G Wagon - the “Watch Diller” favorite ride. What would the Shah think of the the long row of G-Wagons parked outside the Miami Beach watch show in January, driven by grey market dealers who paid for those cars by flipping Nautilus and Royal Oak…? lol You could say he was the spiritual grandfather of Anthony Farrer.
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/15714742-9755-48e1-a984-59b357d2fadd/Screenshot_2024-05-26_at_10.59.47_AM.png?t=1716735641)
The Shah was wearing hype watches, and driving hype cars - 50 years before the first douchebag posted the AP/G Wagon combo on instagram
Are you enjoying this newsletter? Forward, and SHARE with your friends! Subscription link below