This paper empirically tests whether Rolex watches may be considered safe-haven assets. The study employs Local Gaussian Correlations and spectral analysis spanning from 2017 to 2023, examining the relationship between the Rolex market index and more conventional assets, namely: S&P 500, Oil, Nikkei, Eurostoxx, Gold, REIT. The results revealed that the Rolex market index, an Rolex watches, exhibited safe-haven properties during the pandemic crisis.

This research chapter explores how Rolex was deeply transformed after 1990 to control production and strengthen competitiveness against the emergence of many new competitors onto the segment of luxury watches (Cartier, LVMH, Omega, etc.). First, Montres Rolex SA, in Geneva (formerly named Aegler), took over the manufacture of movements and numerous suppliers to exert control over production. This chapter discusses the sharp increase in prices of Rolex over the last three decades. It shows not only that the iconic models of this brand became more and more expensive but also more exclusive, in the context of growing income inequality.

This study finds that luxury watches - particularly Rolex, Patek Philippe, and Audemars Piguet - yield significant diversification benefits when being added to well-diversified portfolios comprising stocks, bonds, and gold, and even outperform them on a risk-adjusted basis. All luxury watch returns exhibit remarkable low volatility most comparable with bonds while being uncorrelated with traditional asset classes.

Journal of Investment Strategies ISSN: 2047-1246 (online) Editor-in-chief: Ali Hirsa Impact Factor: 0.1 First Published: December 2012