Rolex Watches are Ridiculously Overpriced

Rolex makes about a million watches a year. Their MSRP starts at around $6.000 a unit, unless they've raised prices lately, which is entirely possible, and goes up into 6 figures. Except that you can't get one for retail unless you get on a waiting list which is years long.

And they're all overpriced. Reasonable prices would start at around $1,500.

So. About a million purchases, every year, which can be put into 3 categories: 

1) People who think the watches are worth what they cost, and are getting ripped off, as badly as if they were buying Toyotas for Ferrari prices. Imagine people talking about how Toyotas were the greatest cars ever built, and showing off their Toyotas as the ultimate status symbol known to them. That's how absurd the Rolex situation is.

2) People who know watches, and know that Rolexes are ridiculously overpriced, but still, they like Rolexes, and they actually have enough money that the price doesn't matter to them.

3) People who don't know or care about watches, and who also don't know what a bubble is, and are buying Rolexes as investments. They buy the watches and put them in safes or safety-deposit boxes without even taking them out of the box once to look at them. Now and then they might flip one of the watches for a ridiculous profit, but they're holding the rest, assuming that they'll make the same kind of profit on all of them. 

I don't know whether there are more people in 1) or 3). I know that 2) is a much smaller group than 1) or 3). I know that a lot of the people in 1) and 3) have made a lot of money in other bubbles: Tesla, other EV companies, cryptocurrency, etc.