Rolex is one of the iconic brands ever created. However, even the best brands have some dirty little secrets that they would rather not expose to their client base of fans. Here are five things that Rolex doesn't want you to know.
1. Rolex has seen a huge surge in popularity in recent years - as the popularity of timepiece ownership has gone up. That isn't earth shattering news. However, rather than increase supply with the increasing demand, Rolex has chosen to keep its watch supply low.
This has had the effect of creating a waiting list for popular Rolex timepieces - even people offering to pay more for a "Pre-owned" Rolex timepiece just to get their hands on their coveted possession. This has driven up the cost of both New and Pre-Owned Rolexes. Some prices (for example - Daytona's) have gone through the roof and demand doesn't seem to be slowing.
Most companies would increase supply to help meet demand and stabilize prices. Not Rolex. It is true that every Rolex watch takes approximately a year to produce. The craftsmanship that goes into a Rolex is incredible. But a top tier brand like Rolex could acquire talent like no other brand if they wanted to. Even at 800,000+ timepieces produced each year, the skyrocketing demand is forcing prices to increase rapidly - making Rolex ownership harder for the working man or woman.
2. Rolex is originally an English Brand. Yes, Rolex is entirely designed, developed and produced in Switzerland today. However, Hans Wilsdorf and Alfred Davis created the company in London, England in 1905.
They registered the name Rolex in 1908 and renamed the company Rolex Watch Co. Ltd. in 1915.
It wasn't until 1920 that the company moved its base of operations to Geneva, Switzerland, not because they wanted to tap into the horological tradition and history of Switzerland, but merely to avoid heavy taxation from a recovering post-war Britain.
3. Rolex is not the most exclusive timepiece made today. A major goal of any fine brand would be to separate themselves and make themselves appear to be more luxurious than other brands. However, although Rolex is exceptionally valuable, there are plenty of other brands that are rarer right out of the gate. Although there are plenty of watch brands that may have an exceptionally pricey timepiece or one that is built with enough diamonds to fill a mine. However, here are a few timepiece brands that will outprice a Rolex typically out of the gate.
- Patek Philippe
- Audemars Piguet
- Vacheron Constantin
- Lange & Söhne
- Jaeger-LeCoultre
- Roger Dubuis
4. Rolex Foundary's value might be more valuable than Fort Knox. Yes, security in Rolex HQ is pretty tight. Rolex manufactures its own gold, calibers and has plenty of gemologists onsite. And Rolex watches hold their value and have more value than an ounce of the same amount of gold.
According to a US Government agency in 1973, the value of Fort Knox gold was worth about 6 billion. That might be worth 190 billion today, assuming the gold stash is still intact and not sold off to pay for US ballooning debt. But to take the 6 billion and compare it against a profit of 5.5 billion of Rolex indicates that Rolex does have a pretty impressive stash of their own.
Although Rolex may only make a profit of 5.5 Billion, the value of their remaining gold, finished timepieces, and gem collection would far exceed 6 billion. Would it be worth 20 billion on the open market? 800,000 finished Rolexes sold at 30k each would amount to $24 billion, which is 4 times 1973 value of Fort Knox gold.
5. Rolex is likely a made up word. Some people guess that Rolex comes from the French term "horlogerie exquise" or Horological Exquisite (exquisite timepiece). However, there is no proof that backs that up.
Unlike so many fine brands that are named after the early founders and horological experts that designed the timepieces, Rolex is a name that Hans Wilsdorf created the name to be easily spoken in any language.
In fact, he thought the name sounds like a clock when it "hurt itself." Rolex, in fact, could be the sound of a broken clock? That would definitely be a secret Rolex would want to keep under wraps.
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