Thinking of ‘revenge spending’ on a top of the range Rolex? It could cost you US$3,000 more than it did in 2020 – here’s why

Apr 21 , 2021

This Rolex Datejust 31 is the perfect example of a luxury item that costs a surprising amount more than it did last year. Photo: handout

Those who put off buying that Tiffany & Co. engagement ring or Rolex Daytona during Covid-19 may regret waiting, as US prices rose by 7.4 per cent since 2020

As vaccination roll-outs continue, prices are expected to increase further, and it may be a taste of what’s to come for luxury jewellery buyers globally

Luxury items became even more expensive last month as the price of goods in the US saw its highest monthly increase in nearly nine years, according to the US Bureau and Labour Statistics’ Consumer Price Index.

Jewellery and watches were among several items that created the overall surge in prices. The cost of jewellery in the US rose 7.4 per cent from the previous year and nearly 6 per cent between February and March, according to the index.

The cost of jewellery in the US is 7.4 per cent higher than in 2020, according to the latest CPI. Photo: AFP

Similarly, the price of watches also rose 4.3 per cent from 2020 and 2.4 per cent in the past month alone.

While these kinds of price increases may not seem particularly high at first glance, they will put further strain on the wallets of those buying big-ticket items.

If applied to the average price of a Rolex back in 2020 – which cost around US$12,000 according to Wrist Advisor – rising prices mean buyers might find themselves adding another US$500 to the price tag.

Luxury shoppers looking to buy a Rolex have found themselves forking out between US$500 and US$3,000 more this year compared to last. Photo: Rolex

And that’s just for the average buyer. Customers looking to purchase even pricier watches, like Rolex’s US$75,000 model, would have to tack on an additional US$3,000 to bring home the timepiece.

Similarly, for couples looking to buy a diamond engagement ring – an item with an average price around US$5,000, according to Jewellery Wise – buyers can expect to pay an additional US$370 this year, or even see a price increase of US$285 from the previous month.