- Sotheby’s recently teased a rare Rolex predicted to fetch upwards of $1.7 million. No lucky bidder snagged the specialty watch, but a rich Gen Zer might one day scoop up the hot item as the young generation fuels a luxury watch frenzy. With only four versions of this watch known to exist, it’s the crown jewel of accessories and investments.
Watch collectors from around the world tuned in for a very special auction this past Sunday—but no lucky bidder took home the crown jewel of Rolexes. One day, an ultra-wealthy Gen Zer might have a shot at the rare investment.
A 1999 platinum Rolex Daytona went up for sale at the Sotheby’s Geneva event on May 11. It’s an extremely rare timepiece (only one of four known to exist) that was projected to sell for upwards of $1.7 million.
Fortune confirmed with Sotheby’s that no one took home the collectible that night. A spokesperson confirmed it was withdrawn, which could result from a whole host of reasons: including the buyer getting cold feet, the auctioneer taking it off the agenda, or a deal falling through.
With a mother-of-pearl face and diamond-laden setting, the privately commissioned watch is sure to drum up fierce bidding wars among collectors in the future. Especially among the newest class of luxury consumers: Gen Z.
While many young people are bracing for an impending recession by saving on therapy and clothes, the top 1% of their cohort is still splashing out on high-end watches, Ferraris, and luxury travel.
Sotheby’s wouldn’t reveal when the rare Rolex may hit the market again, but one thing’s for sure: when it does, Gen Z’s wealthiest will be lining up to bid for it.
They know that watches, unlike other luxury items, are a unique entry point to investing and can even outperform real estate or stocks.
Gen Z’s luxury watch obsession
Research highlights that young people with at least $3 million to their name are skeptical of growing their wealth in traditional assets like stocks and shares—about 94% of Gen Z and millennials are interested in collectibles like watches and jewelry instead.
New York-based auction house Sotheby’s has seen the shift up close, with sales surging over 40% since the pandemic to hit $7.9 billion in 2023. The luxury broker credits much of that boom to a new wave of young collectors.
Geoff Hess, head of watches at Sotheby’s America, told Fortune that 30% of all watch lots in 2023 were purchased by people in their 30s and under. It may be fueled by the accessibility of online auctions and transactions.
“Eight years ago, nobody was looking at watches on Instagram. Now, it’s the most prevalent place to see a watch,” Hess said. “It’s the most important part of watch advertising—social media. And that’s going to appeal to somebody in their twenties, thirties, or forties. Not somebody in their seventies.”
Luxe watchmakers are also enjoying the Gen Z-fueled craze. Ilaria Resta, CEO of renowned Swiss watchmaker Audemars Piguet, told Fortune that its $25 billion export boom in 2023 was fueled by young rich consumers itching to feel connected to simpler times as they face hardships left and right.
“[Gen Z] are very different, even from the Millennials, because they went through lots of crises,” Resta said.
“For my generation, Gen X, a departure from the past was self-asserting,” she said, while “in a way [Gen Zers] want to go back to years when they didn’t even live.”
Rolex’s CEO says luxury watches should not be seen as an investment, despite a better ROI than real estate
There’s a lot of uncertainty as to which luxury goods will stand the test of time, and prove to be smart investments. Hermès Birkins have always been the frontrunner—but watches may be a safer choice.
The value of watches has skyrocketed by more than 125% over the past decade, according to the Knight Frank Index, and has a 52.7% projected growth rate for the next five years. It’s one of the best performing luxury investments, tailing right behind rare whiskey and designer furniture.
While the CEO of Rolex has said that watches should be seen as a “product,” and not an investment, there’s no denying its popularity as a classic financial asset.
Savvy shoppers who invested in Rolexes over a decade ago are already reaping huge gains. In 2011, the average price of a pre-owned Rolex watch was just under $5,000, but ten years later, the value shot up to more than $13,000. That’s a 260% increase—an investment return that outperformed real estate, gold, and the stock market in the same time period.
“A purchase today of a watch is, I would say, a lot more than it used to be about the status of that watch or that brand,” Anish Bhatt, a wristwatch influencer with over 1.6 million followers on Instagram, told Fortune. Unlike a flashy new Jaguar, which will depreciate as soon as it’s left the dealership, wristwatches are a trendy way of boasting wealth while still making money.
As Bhatt explains, this younger demographic “is much more informed than their counterparts used to be…they understand the value of watches, [and] they also understand the status that it gives them. Some huge collectors that I know are not even 30 years old yet, [with] collections that are outstanding.”
This story was originally featured on Fortune.com
