Why did Rolex raise the prices of its luxury watches in 2025? What is the relationship with gold?

Customers may have to pay more to obtain a new Rolex watch from an authorized dealer in 2025 after used Rolex prices continued to decline last year 2024, as the Swiss company raised the prices of many of its models this year, according to what the American Bloomberg Network reported.

Rolex watches prices rise

But higher prices could be good news for collectors and used watch dealers who have been hit hard by Rolex’s declining value.
Earlier, Bloomberg reported that Rolex began the year by raising the prices of some new watches made of precious metals by 8%.
For example, a 40mm gold Day-Date watch that sold for about $42,250 last year in 2024 will now cost $45,809, according to Rolex’s website.
While Rolex sports watches made of steel also witnessed increases, but less, in prices.
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New prices for watches at the beginning of every year

Most luxury jewelry and watch makers usually introduce new prices for items at the beginning of the year but an 8% price rise is significant and exceeds inflation.
At the same time, prices for used Rolex watches fell steadily from being higher than the price of watches sold at retailers because most models were no longer available.

Rolex watch prices last year

Over the past year, the WatchChart Overwatch Market Index, which tracks a basket of used Swiss and European luxury watches, has fallen by 5.1%.
Prices paid for Swiss watches – Rolex, Patek Philippe and Audemars Piguet – fell by 4.9%, 6.5% and 7.4% respectively.
This comes after a difficult year in 2023 when Rolex prices fell by 8.2%.
Rising retail prices and continued inventory shortages may actually boost demand and prices in the used Rolex market, Charles Tian, ​​founder and CEO of Watch Charts, told Yahoo Finance.

Rolex long term forecast

He added: “I believe that in the long term this may lead to an increase in demand for used Rolex watches as their value proposition becomes stronger.”
“Typically when Rolex implements a price increase, it boosts demand for pre-owned models as collectors and buyers look for alternatives that offer value without compromising on quality or prestige,” said Paul Altieri, founder and CEO of Bobs Watches, one of the largest retailers of pre-owned Rolex watches.
He pointed out that while the retail price of a new Rolex watch remained unchanged when accounting for inflation, the price of the same watch on the used goods market decreased by more than 25% in some cases.

The relationship between watches and gold

Rolex watches have become more expensive this year due to rising gold prices. The prices of some gold watches produced by the Swiss company rose by about 14% by 2025, and this is in comparison to their counterparts made of steel, which witnessed an increase of 3% on average.
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Gold prices rise

But the luxury watchmaker is increasing prices annually at a time when the rising price of gold is largely responsible for gold watch prices to rise twice in 2024.
Gold prices rose by 27% last year 2024, with central banks around the world reducing interest rates.
Investors often view gold as a safe haven in times of economic turmoil and inflation, and when interest rates are lowered, gold may become more attractive than income-producing assets such as bonds.

Purchasing operations continue amid buyers’ interest

But high prices are not expected to put off buyers and collectors, as wealthy customers have financial power that is “rarely affected by market fluctuations that affect ordinary consumers,” said industry expert Antonio Sasso.
“Price increases not only lead to a significant loss of customers but also become a major strategy,” he added.

Gold and dollar

Analysts do not expect gold prices to decline in 2025 as the value of the US dollar rises and interest rates fall.
Joseph Dahrier, managing director of the brokerage firm Tikmel, said: “Market trends indicate sustainable support for gold prices, especially as investors seek to balance their investment portfolios against various economic and political risks.”
Earlier, Yahoo Finance reported that Rolex began the year with price increases of up to 8% for some new watches made of precious metals.