(Kitco News) - Gold was one of the top-performing assets of 2025, ending the year with a nearly 30% gain to finish solidly above $2,600 an ounce.
However, the precious metal's stellar performance comes at a cost for consumers. Rolex SA, the largest luxury Swiss watch brand, has raised prices on some of its most popular models.
The watchmaker typically increases its prices on January 1. According to media reports, Rolex has raised prices this year by as much as 11% on certain gold watches, while prices for its steel models increased by only 3%.
By comparison, the company raised prices by 4% last year.
Rolex’s Daytona, one of its most sought-after watches, has seen its price jump nearly 14%. The white gold version with the OysterFlex bracelet now carries a suggested price of $38,100, up from $35,000 last year.
Similarly, the Rolex Deepsea now costs $58,000 — an increase of more than 11% from last year’s price of $52,100.
Despite these higher prices, some experts do not expect sales to suffer.
Antonio Sasso of Italian Watch Spotter observed that the company’s affluent customer base "has no fear of the continuing price increases."
“The combination of ever-increasing demand and limited production makes the brand one of the most dynamic on the market. This, along with intrinsic value and strong demand, ensures that Rolex watches remain not only a symbol of elegance but also an attractive investment opportunity,” Sasso added in his note.
While Rolex's price hikes have drawn attention, analysts expect other luxury brands to follow suit.
Many analysts predict that higher gold prices will weaken global jewelry demand through 2025.
Particular focus is on Chinese demand, which drove gold prices to record highs in the first half of 2024. However, looking ahead, analysts suggest demand may face significant challenges due to a slowing economy and the imposition of heavy trade tariffs by the U.S. government under President Donald Trump, further dampening activity.
“The impact of higher gold prices is likely to manifest in reduced consumer spending on the precious metal, particularly among middle-income households, which make up a significant portion of the market,” said Fawad Razaqzada, Market Analyst at Forex.com, in his 2025 outlook report.
