The renowned luxury watch brand has announced a significant price rise for its gold models, attributing the change to the recent surge in gold prices.
Rolex, a leader in the luxury watch market, has increased the prices of some of its most popular models made with gold by up to 8% as of January 1. This adjustment reflects the broader trend in the gold market, where prices surged nearly 30% throughout 2024 to approximately $2,700 per ounce. The Swiss watchmaker’s decision affects several models, including the yellow gold Day-Date watch, which saw its price rise from €41,000 to €44,200, roughly equating to an increase from $42,090 to $45,370.
Another model experiencing a similar increase is the yellow gold GMT-Master II, which now costs €44,600, up from €41,300. These price hikes are reportedly more substantial than previous yearly adjustments made by Rolex, suggesting a response to the considerable increase in gold’s value. Historically, Rolex’s annual price adjustments occur on January 1. While these increases are consistent with past trends, they are notably higher this year.
The underlying cause of the gold price surge in 2024 stems from several factors. Key among them is the rising demand from central banks in countries like Turkey, India, and China, which collectively purchased a record 483 tons of gold in the first half of 2024, according to the World Gold Council. Moreover, escalating geopolitical tensions, particularly related to the Russia-Ukraine conflict and unrest in the Middle East, have prompted a shift towards gold, widely considered a stable investment in uncertain times.
Analysts anticipate the upward trajectory of gold prices to persist into the future. For instance, forecasts from Goldman Sachs suggest prices might reach $3,000 per ounce by the close of 2025. Despite the significant price adjustment in its gold models, Rolex has not commented publicly on these changes.
The rise in gold prices has had a palpable impact on the luxury watch market, prompting Rolex to adjust its model prices accordingly. This development underscores the interconnected nature of global commodities and luxury goods.
Source: Businessinsider
