Why does Daytona 116500LN can maintain high price? | JEWEL CAFÉ Malaysia

“It’s almost time to lower the price.” In recent years, this has been everyone’s Rolex conjecture. Since its introduction in 2016, the Daytona 116500LN’s price has never been reduced, and it has remained excessive. The phrase “maintain” is incorrect because the price of this watch is constantly increasing. People say that “the price shouldn’t be able to rise anymore,” yet in the current environment, the price of watches is far from capped, which is “unheard of” in the watch sector. True, the Rolex market has increased in recent years, and the price has risen in tandem. However, the price of Daytona 116500LN is skyrocketing. What makes the Rolex Daytona 116500LN so pricey? Let us explore the mysteries of the Daytona 116500LN and the booming Rolex market!

※ The information published in this article is the market price of the relevant watch as of September 2020.

What is Rolex Daytona 116500LN?

Rolexes’ lone chronograph model, the Daytona 116500LN, was debuted in 2016. The Daytona series has been in production since the 1960s (officially since 1963), and it is presently in its sixth iteration. The case has an elegant and lovely texture, with a diameter of 40 mm and a thickness of 12.5 mm, paired with a Cerachrom ceramic outer ring. The Cerachrom ceramic outerring’s distinctive style and high-level sensitivity have increased Daytona’s popularity. The Rolex Daytona watch has the Cal. 4130 self-winding mechanical chronograph movement, which was created and produced by Rolex.

In addition to its great accuracy, Rolex developed and produced this movement with strong resistance to magnetism, impact resistance, and repairability. It is incredibly useful and is referred to be a “Cerachrom masterpiece” by many people. Because of the innovative design of the 4130 model, the texture of the Daytona 116500LN may be long-lasting. Some people believe that the official cost is the same as no pricing because it is extremely difficult to obtain Daytona 116500LN from an official authorized retailer for this sporty design.

The black dial of the 2020 Rolex Daytona 116500LN is slightly less expensive, but the Daytona 116500LN remains the market leader. In addition, while prices in the second-hand market may fluctuate due to condition, the price difference between a second-hand item and a brand-new item is insignificant. As stated at the outset of this piece, the Daytona 116500LN’s price has not been reduced since its debut in 2016. Following that, we’ll go into the watch’s history.

1. 2016 ～ 2019 116500LN Market Trend

When the new 116500LN with Cerachrom ceramic outer ring debuted at Baselworld in 2016, many in the industry exclaimed, “This watch seems to be a popular product, and it may set a very high price record?” The price of 116500LN then became constant and fixed. With the commencement of a trade war at the end of the year, however, the price surpassed the fixed price set at the end of 2016. Prices have increased 1.5 times in less than a year since the second half of 2017. The market is now rumored to be “about to drop,” but this prediction is clearly incorrect. Around 2018, Rolex attempted to harmonize global pricing in order to establish an image of “extraordinary valuable Rolex” globally in order to boost international competitiveness. Of course, the prices will not be the same, but we can speculate that in the past, the cheaper price obtained in a foreign country combined with the import item price would raise the price at the same time. Despite the fact that the Rolex price fluctuates, the overall market appears to be on the rise. In June 2019, the price of imports reached an all-time high. However, the Rolex market quickly collapsed, and the Daytona 116500LN suffered as well. The cost has been decreased till September of 2019. Due to the trade war, the market price increased again near the end of the year. At the end of the year, it returned to its previous pricing level. The white dial is the market trend, as previously said, and the black dial will be less expensive. Everyone knows that the Daytona 116500LN price was only lower for a short period of time in 2016 and 2017. Furthermore, despite the market’s prediction that it would fall, the price has risen over time.

2. Market trend of 116500LN in 2020

In 2020, the watch industry was also affected by the new COVID epidemic. This virus’s most important threat is “infectivity,” and it was labeled as a new kind, meaning that it still has many unsolved difficulties. As a result, governments have declared emergency declarations and imposed lockdown protocols. In this scenario, stores are shuttered, and people and goods are limited. Multiple issues, such as a lack of available inventory and uncertain future prospects, have contributed to the economy’s continued decline. The Rolex market had continued to rise at the beginning of 2020, but it has fallen precipitously since March due to investor risk aversion.

Despite the severe condition, Rolex prices progressively increased following the Golden Week. The Daytona 116500LN price broke the highest June 2019 record. A similar pattern is predicted to persist until September 2020. Why is the Daytona 116500LN so expensive? Let’s have a look at the main reasons behind this situation.

3 main reasons for Rolex Daytona 116500LN’s high price

① High Demand

The “exchange rate” component has already been mentioned, but the Daytona market is virtually unaffected by the currency rate. Regardless of depreciation or appreciation, the market continues to increase (after 2016, Rolex prices rose owing to depreciation). The reason for the high prices is the massive increase in global demand. As previously stated, “country price adjustment” started in 2018, and Asian countries are growing. Rolex demand had grown rapidly in countries like as China and India. This is due to the allure of Daytona. Rolex’s only chronograph design, exceptional performance, Daytona prior generation before 116500LN has also established top record that surpassed fixed price. Several incidents have occurred in recent years that highlight the benefits of “asset value” and “resale value” have been added.

These critical qualities have traditionally been valued by long-term watch collectors. People will now consider the “purchase rate when reselling (deduction rate)” as well as the “investing purpose when buying Daytona” when making a purchase decision. This gives Daytona 116500LN a new worth than in the past, making everyone cherish Daytona even more. Furthermore, a growing number of people regard Daytona as a “portable asset.” Other valuables, such as gold bars, are more difficult to keep. The watch’s size and weight, on the other hand, are designed to be worn on the wrist. It’s simple to transport and store. It is more appealing to investors because it can be traded quickly. This “asset value” has remained stable in the face of the downturn, which is significant reason for the demand for Daytona 116500LN.

② Less supply

Although Rolex is considered a practical watch, it is not mass produced. It should be noted that the yearly production is not large because Rolex creates all of the items, from the outside to the inside (the true manufacturing volume is unknown…). The Daytona 116500LN, in instance, has a chronograph. In compared to other models, its complicated mechanical architecture can only be found in a few nations. Furthermore, the preceding paragraph introduces its “asset value” features, increasing the popularity of Daytona’s resale behavior. As a result, Rolex stocks top-selling sport watches and closely monitors sales volume and sales clients. Then there’s the COVID-19 outbreak. As previously indicated, numerous industries were obliged to close their doors as a result of governments declaring an emergency or implementing pandemic preparedness measures. Rolex, too, followed the Swiss government’s emergency declaration, shutting down production for 45 days beginning March 17th. During the downtime, Rolex completely stopped exporting, and it is expected that manufacturing will be reduced by more than 12% by 2020. In other words, the market had a Daytona deficit (insufficient Rolex). However, the previously mentioned demand has not decreased, causing market prices to rise. Daytona 116500LN is in high demand and scarce. Impossible to rely on foreign or agency imports. Many watch merchants purposefully purchase from the general public in order to ensure their own supplies. This resulted in a significant increase in the purchase price as well. Because watch store purchasing costs have increased, the selling price must now be increased; thus, the trend of increasing Daytona prices is unavoidable. This is the best time to sell a Rolex, especially a Daytona 116500LN. As previously stated, more retailers are aggressively acquiring Rolex from private owners, and they will, of course, offer a more appealing purchase price.

③ Active trading in the second-hand market

We previously said that the Rolex price increased because to a supply-demand mismatch. Another factor is that the second-hand Rolex market is growing, and watch trading is getting more active. As previously said, the Rolex has a high asset value. This statement has been around for a long time and did not appear recently. Because Rolex established their high-tech wristwatch manufacturing abilities early on, it has gained such a global renown. Rolex introduced the Oyster case in 1926. It’s famous for its “Oyster”-like casing design. Invented the world’s first waterproof watch, which became famous worldwide. Its reputation is not unfounded. Since then, the watch industry has agreed that Rolex watches are the epitome of the term “solid.” Furthermore, Rolex’s relentless pursuit of the movement’s maintainability has elevated them to the throne of the watch industry. Even if they are old and worn, early wristwatches can be used if they are submitted for service with some condition support. This is also beneficial when selling used goods. Aside from the original characteristics, the fact that people have an excessive need for Daytona, as well as the cause of the decline in availability, makes the used market increasingly active. There’s also the notion that you “can’t afford new ones but can afford used…” This type of thinking fuels the second-hand trade industry. Other shops go out of their way to find personal collections. In the market, there was a Daytona 116500LN trend. Because of this paragraph addressing these three factors, the Daytona 116500LN market is growing.

Summary

Among Rolexes, we have shared the most welcoming Daytona 116500LN! Since its debut in 2016, Daytona 116500LN has earned a peak market value that exceeds its selling price. However, we saw a massive price increase in 2020. One of the primary causes is an extremely high demand. 2 supply reductions and 3 active used market participants. It is hardly an exaggeration to say that the Daytona 116500LN is the most popular watch in the industry. If you’re thinking about selling your Rolex, don’t pass up this fantastic offer!