Rolex Raises Prices on Some Luxury Watches Amid Gold Surge
Background
ROLEX, the biggest luxury Swiss watch brand, has raised prices on some of its most popular models after gold values surged in 2024. The Geneva-based company, controlled by a Swiss foundation named for its co-founder Hans Wilsdorf, began the year by hiking prices as much as 8 per cent on some models made from precious metals.
Price Hikes
A yellow gold Day-Date with a 40-millimetre black dial costs 44,200 euros (S$62,341) as of January 1, up from 41,000 euros, according to Rolex’s website in France. A yellow gold GMT-Master II costs 44,600 euros, up from 41,300 euros.
Reasons for Price Increases
Price increases can be indicative of the demand for premium luxury products, the cost of materials and labor, as well as inflation. Gold recorded its biggest annual price increase in 14 years in 2024, soaring 27 per cent.
Company’s Response
A Rolex spokesperson in Geneva declined to comment on the price changes.
Comparison to Previous Year’s Increases
This year’s increases are larger than last year’s. Rolex raised prices on some precious metal models by about 4 per cent in the UK at the start of 2024.
Country-Specific Prices
Country-specific prices for timepieces can also be seen as an indicator of a nation’s economic strength. The world’s top luxury watch brand produces more than one million watches per year, with sales above 10 billion Swiss francs (S$15.1 billion), according to analyst estimates.
Steel Models
Price hikes in 2025 for steel models were less aggressive. A steel Cosmograph Daytona now costs 16,000 euros, up from 15,500 euros in 2024. The price of a Submariner dive watch without a date rose by about 1.6 per cent to 9,500 euros.
Conclusion
Rolex’s price increases may be indicative of the rise in gold, but currency fluctuations have also played a role in the past. As the Swiss franc soared against the British pound and the euro, Rolex raised prices twice in the UK and Europe in 2022.
Frequently Asked Questions
Q: Why did Rolex raise prices on some of its luxury watches?
A: Rolex raised prices due to the surge in gold values in 2024.
Q: How much did the prices increase?
A: Prices were hiked as much as 8 per cent on some models made from precious metals.
Q: What were the specific models affected by the price increases?
A: The yellow gold Day-Date and GMT-Master II models were affected, with prices rising to 44,200 and 44,600 euros, respectively.
Q: Why did Rolex raise prices in 2022?
A: Rolex raised prices in 2022 due to currency fluctuations, specifically the Swiss franc’s appreciation against the British pound and the euro.
