Rolex Returns & Seized NFTs
The best alternative investment this decade, and tax authorities seize digital assets
Cultured is a newsletter by Otis that gets readers up to speed on the most interesting things going on at the intersection of finance, art, collectibles, NFTs, and more.
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🗞 STORIES OF THE DAY
Rolex watches were one of the soundest investments last decade
Luxury watches have been popular alternative investments for several years (and got more popular during the pandemic). Now, we know they’re also one of the best investments you can make. Data from Bob’s Watches shows that the value of a pre-owned Rolex watch doubled over the past 10 years.
In terms of asset value, Rolex outperformed other major investments, including gold, real estate, and the stock market. Every model has appreciated since 2011 and all have hit an all-time high over the past decade.
The best selling Rolly on Bob’s Watches was the 16610 Submariner by a long shot. Interestingly, around half of the top Rolex models sold on the site were sports editions.
Our Take: The Rolex report is the latest sign that alternative investments can also be sound investments.
One of the most remarkable parts of the report is the revelation that Rolexes never went down in value. In contrast with assets like stocks or real estate, these luxury watches continued to appreciate in value every year over the past decade. Like any asset, it’s impossible to guarantee future growth. But with watch brands increasingly focused on growing value by investing in blockchain projects, the future of this alternative investment is bright.
For the first time, the UK has seized NFTs as part of a fraud investigation
The UK’s tax authority announced earlier this week that it had seized 3 NFTs as part of a fraud investigation. It’s the first time (that we know of) that a Western government has taken an NFT in connection with an ongoing fraud case.
Her Majesty’s Revenue & Customs (a name that makes me laugh literally every time) seized the NFTs after connecting them to a $2 million tax fraud scheme. The NFTs have yet to be valued.
The decision to take the NFTs suggests that fraudsters were using the NFTs to hide the ill gotten funds. Using crypto assets to launder illicit earnings is an increasing source of concern for tax authorities.
Our Take: Weirdly enough, this is definitive proof that NFTs are art.
For centuries, wealthy collectors have used art as a way of hiding money (especially if the source was dubious or downright illegal). By using that cash to buy a work of art, they effectively laundered it without attracting attention. The fact that people are now trying a similar tactic with NFTs suggests that they’re actually quite similar to physical art. But unlike regular art, transactions are hosted on a public blockchain. Oops!
✨ AROUND THE INTERNET
Soccer card collectors: your hobby just got a whole lot more expensive. A near-perfect Pele rookie card sold for a $1.33 million, marking the first time a soccer card sold for over a million dollars.
A sealed VHS copy of The Terminator sold for more than $30,000 at auction earlier this month. I can’t wait to get my parents’ attic collection appraised.
Hublot’s new Big Bang Unico watch comes with an added bonus: an exclusive crypto wallet on Ledger. Not quite sure what makes it different from a regular (free) crypto wallet, but if you have $30k to drop on the watch, you probably don’t care.
Worried about how global warming could affect your (watch/art/sports card/tiny antique bottle) collection? An insurance lawyer breaks down what you need to be concerned about and how to insure your stuff properly — exciting stuff!
Logan Paul, the YouTuber and human meme, has filed trademarks for an NFT marketplace and a DAO venture. Let’s hope he does more due diligence on these projects than he did on that fake Pokémon collection…
Azukis, an NFT collection of anime-like skateboarders, has logged around $300 million in trading volume over the past month, beating out BAYC and other major collections. The secret to their success? Latching on to the skater community, which has a strong affinity for NFTs.
