Rolex increased the price of certain precious metal watches sold in the UK, following an increase in demand for gold as a safe-haven asset.
Luxury company adds up to £1,500 on some watches. For example, the Daytona Chronograph in White Gold Rose now costs £38700 instead of £37200.
Bloomberg data shows that the price of the Yellow Gold GMT Master has risen from £34,000 to £35,400
Gold prices have risen 14pc in the first half of this year. Investors are buying gold in anticipation of anticipated interest rate cuts in the US.
Investors often view gold as a more stable investment than other assets that pay interest, such as bonds.
Rolex raises prices about once every year. It produces over one million watches a year. In recent years, currency fluctuations have prompted it to raise prices more often.
Watches Of Switzerland, UK’s largest luxury timepiece retailer said that the waiting list for watches was growing despite increased prices.
The rise in prices has led to a surge in luxury watches theft in London. According to a report published by The Watch Register, the number of watches stolen or lost has tripled over the past year. It said that of the thefts registered in this period, about half occurred in London.
A Financial Times article from earlier this year stated that Indian businessmen and chief executives have grown increasingly concerned with theft while visiting London. They raised the issue when shadow foreign secretary David Lammy was in New Delhi on a recent visit.
Luxury goods sales soared in the immediate aftermath of the pandemic. Luxury goods companies have seen their sales decline in recent years due to a slowdown in China and the elimination of VAT for British tourists shopping abroad.
Watches Of Switzerland announced last month that UK sales will fall by 5pc by 2024.
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