Hi Fernando,
Whats your experience with rolex watch? Will it hold value in SHTF? Decrease, increase?
If I remember correctly, you mention in
your first book, but I am traveling and do not have it with me to look up what you said about it.
I
have some savings which I am using to purchase precious metal coins.
However, in one of the shops, I came across a (genuine) 18k gold ladies
oyster perpetual president made in the early 80's for US $3,800 and it
got me to thinking.
1) It is my understanding is that I could walk into any major city in the world and be able to convert it easily into cash.
In your experience, would that be accurate?
I
am always on the go---traveling somewhere---both around the US and
international. I like the concept of a rolex because its subtle. It is
seen as a personal item and would never get counted towards the $10K
cash limit.
Since it is an older model, if anyone ever asks about it, I will say it belonged to my grandmother and was passed down to me.
We
have problems now in the US with police officers confiscating
(stealing) your cash and monetary instruments claiming its suspicious
for "drugs" even if you have committed no crime and have never touched a
single drug in your life.
As opposed to bullion, it is highly unlikely that a rolex worn on your wrist would ever be confiscated by police or customs.
Other questions/concerns:
2) The scrap value of the gold in the watch is only about US $1200 compared to its asking price of $3,800.
In terms of holding its value, is it better to stick to bullion coins?
Or would it be reasonable to expect that a genuine gold Rolex would
hold/increase its value in bad times?
3) I am a single female and usually solo. How much danger am I putting myself in by having and wearing a gold rolex?
I am automatically on "yellow" alert whenever in public, and practice situational awareness at a level much higher than most.
For the time being, I'm sticking to "1st world" countries, although who knows? That could change.
I
have done a lot of internet research about this model of watch and the
price. Retail price for the same or similar watch in the US right now is
between $7,000-$12,000. This caused me to be suspicious of the seller,
so I went back and examined the watch closely with gem magnifier, and
it is definitely authentic.
I asked the shop
owner why this piece is priced so low. He said that most of the
merchandise are things he purchased and re-sells. But that this
particular piece he is doing on consignment for a friend and she needs
the $$.
He confirmed everything I had researched online about how, in the USA, this watch would sell for $7,000 +;
He
said that here in Canada (quebec), there just aren't many buyers for
rolex because Canadians don't have money like Americans do. And that
most of his rolex customers are actually Americans who come over the
border to make purchases.
Thank you so much for everything you do! Love your stuff, and Im just bummed that I didnt bring your book with me!
Angela
...
Hello Angela,
In
most countries that I’ve been to form USA to Argentina and here in
Europe, the advertising seems to be the same: “We buy your gold, silver,
diamonds and Rolex”.
You have to keep it mind though that the
selling price is nothing like the buying price. In general you are lucky
to get half of what a potential customer is willing to pay once the
dealer flips the watch. Now if you can get it yourself for such a low
price then you could probably sell it elsewhere without losing money or
maybe even making some on top.
In general yes, Rolex do hold their
value pretty well, same as quality jewellery. The trick is knowing your
trade, knowing how to avoid counterfeit items, and of course avoiding
the ridiculously low offers you come across sometimes and sticking to
serious people.
I was talking with a jeweller today and he was
showing me how to grade diamonds, which imperfections are acceptable and
which are not. Its all very interesting stuff. Again, the selling price
is often not as good as the buying one so you do lose some, but Rolex
watches hold on nicely. The nice thing about bullion is that market
price is fixed so there’s less room for excuses. Try talking with the
shop owner. Ask him, honestly, how much would be pay for a similar item
if he was buying so as to get a reasonable profit margin himself. That
will give you somewhat of an idea of how much you can get for it.
So, answering your questions.
1)Yes,
in most city centers around the world you will be able to sell your
Rolex for good money. Some dealers may haggle worse than others but you
will walk out with a wad of cash. The trick is buying a quality item,
paying as little for it as possible and then asking around to get a good
deal when it’s time to sell.
2)For protecting money, I think
precious metals is the way to go because as I said before, it has a
given market price and there isn’t much to debate about. Pure gold is
just that. Watches, antiques and even numismatic coins have a certain
value as well and they may well be good investments and ways of moving
around a lot of cash. I doubt the average TSA agent knows what a Mercury
Dime 1916 D is, but the thing is worth $135,000 in MS67 condition.
Having said that, its not as reliable in terms of knowing the specific
price as checking the daily given value of gold and silver. The same
coin can be worth $100, or $100.000 depending on its grade, and the
difference between Fine condition or Very Fine condition can be hard to
tell. Even experts may have a difference of opinion. This kind of
problem doesn’t exist with precious metals.
3)I would say the risk
is pretty high. In a place like Argentina its downright suicidal. I’m
not exactly a “soft target”, yet for some time I stopped wearing my gold
wedding ring, replaced it for a silver one like lots of other people
did back in the day. Now in first world countries this may not be that
much of a problem. In most European capitals and large cities you see
women with very expensive jewellery. Still, I would say a gold Rolex is
pretty noticeable and pretty tempting. In moderate to high crime areas I
would keep it out of sight. If you just want to keep it with you then
it would just be a matter of being careful and when you know you are in
more troubled areas just put it in your purse.
Stay safe!
FerFAL
Fernando “FerFAL” Aguirre is the author of “The Modern Survival Manual: Surviving the Economic Collapse” and “Bugging Out and Relocating: When Staying is not an Option”.
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Fenix PD20
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General Mode: 9 lumens (35hrs) -> 47 lumens (6.5hrs) -> 94 lumens (2.6hrs) -> SOS
Turbo Mode: 180 lumens (1hrs) -> Strobe
15 days of survival use (2 continuous hours per day on the lowest setting)
