Investing.com - The renowned luxury watch company "Rolex" has increased the prices of some of its gold watches in the United Kingdom following a rise in investor interest in the precious metal.
The luxury brand added up to £1,500 to the prices of some of its watches, such as the "Daytona Chronograph" made of white rose gold, which now costs £38,700 compared to its previous price of £37,200.
This comes after gold prices reached a record high this year, having risen by 14% so far this year. Investors are buying the precious metal in anticipation of expected interest rate cuts in the United States.
Gold is often seen as a stable investment that becomes more attractive to investors during times of geopolitical and economic uncertainty, compared to interest-bearing assets like bonds.
Typically, Rolex, which produces over a million watches annually, raises its prices once a year. However, currency fluctuations have led it to increase prices more frequently in recent years.
Meanwhile, Watches of Switzerland, one of the largest luxury watch retailers in the UK, said last summer that waiting lists for watches are growing despite the rise in sales prices.
The price hikes have led to an increase in luxury watch thefts, especially in London. The number of stolen or lost watches tripled last year, according to a recent report by The Watch Register. It added that nearly half of the recorded thefts during that period occurred in London.
According to a report by the Financial Times earlier this year, Indian CEOs and businessmen are increasingly worried about theft when visiting London.
Sales of luxury goods surged during and immediately after the pandemic. However, recently, luxury goods companies have suffered from declining sales amid the economic downturn in China and the removal of VAT-free shopping for foreign tourists in Britain.
Watches of Switzerland said last month that UK sales fell by 5% in 2024.
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