Posted on 11/14/2023 5:27:11 PM PST by algore
The price of used Rolex and Patek Philippe watches fell to fresh two-year lows last month as demand for the luxury timepieces continues to wane amid rising supply.
The Bloomberg Subdial Watch Index, which tracks prices of the 50 most traded watches on the secondary market, dropped 1.8 percent in October to around $34,000.
It is at its lowest level since 2021, and down 42 percent since a near $60,000 peak in April 2022.
The decline comes following a surge for the most in-demand Rolex, Patek and Audemars Piguet models during the Covid-19 pandemic. Watches were more readily available on secondhand resale websites, and collectors had excess capital to spend on luxury goods.
But as interest rates hover at 22-year highs amid lingering inflation, the luxury boom appears to be coming to an end as collectors slow down their purchases.
However, if an investor were thinking about scooping up a watch now, experts caution they are likely to fall even further in price.
Christy Davis, co-founder of UK-based trading platform Subdial, said in the company's October update: 'We are seeing growing downward pressure in the market, which could lead to a further downward drift in prices as dealers cut valuations to chase sales.'
According to Subdial, the number of pre-owned watches available on the secondary market has risen by 5 percent since August - and the average number of days that a timepiece will take to sell has gone up by 8 percent.
Price uncertainty, which measures the spread in prices offered for a watch from different sellers, has increased 12 percent over the same period.
'With more watches available at a wider spread of prices, what we're seeing is people dropping prices to chase sales going into the holiday season,' Davis added.
(Excerpt) Read more at dailymail.co.uk ...
The prices were based upon muggers’ reports. When they don’t get much for them the average price goes down./S
During the pandemic, “collectors had excess capital to spend on luxury goods.”
I’m glad they found a way to wisely spend some of our trillions in national debt. For a while, I thought the GD government had just pissed away all of that massive debt.
I buy art instead of watches, and follow a lot of the auction action. Buyers still seem to have considerable funds, at least for the really good stuff in the $2000-10000 range.
The painting I want to buy, they’ll bid up to the moon - but even the ones I don’t care for are selling briskly.
They wasted our money on overpriced luxury watches and vintage cars.
And they just squandered the rest.
Lol! I bought a Gucci watch that way when I was in 8th grade on a trip to South Street Sea Port in NYC.
My neighbor just sold a Patek Philippe and a Rolex watch he inherited from his father - he’s disabled and needs the money for medical bills and to put food on the table.
He was shocked by how little he received for each of them, but felt he had no choice.
My dad always bragged that his $9.00 Timex that he bought at the gas station kept as good a time as any fancy watch.
I’m not seeing the drop, here.
I wish it would so I am not so self conscious wearing it.
https://www.watchpricetrend.com/Rolex_GMT+Master_1675-21.html
Watches, schmatches. I stopped wearing a wristwatch about 20 years ago when cell phones started automatically obtaining the current time from the cell tower.
ok the price trends ends 2019
Your Dad was right .
Wait for the 10 year low.
I stopped wearing a wristwatch about 50 years ago when I realized everybody else had a watch on their wrist and all I had to do was ask “What time is it?” Nobody ever replies “None of your business.”
Ha, you and my late father would have been kindred spirits. He quit wearing wristwatches when he took up golf in his 20s, as he said his golf swing felt better without a watch. His attitude was the same as yours, as he said, “Hey, there are clocks everywhere, and if I really need to know the time, I can just ask someone else.”
I unloaded two Rolex watches back in 2022, but they were never bought as investment pieces. Granted, I never abused them so they were in excellent condition, but like when I buy a knife, it’s to use and not let it sit on a mantle. The prices being offered were ridiculous and it gave me a chance to shrink the collection.
The issue was, and still is based on a lot hype and trendiness. If it wasn’t, Rolex wouldn’t be held in such high esteem. Sure, they make a ‘good’ watch, but that’s it, a ‘good’ watch. There are more horologically better brands, and high quality brands which actually offer much higher value per dollar spent than a Rolex. Some of the brands like Jaeger-LeCoutre even embraced the hype and jacked up prices so that the value diminishes in relation to their quality. Heck, even some micro-brands offer incredible value for money and are extremely good quality. My Christopher Ward GMT holds excellent time overnight (when put down in the proper position) for $1500.
Buy the watch to commemorate an event, because it fits your needs/lifestyle, or simply because there is something you admire about it. But most watches, are simply not going to appreciate. And those that do, better be darn unique, or some serious cred right out of the gate (like a Patek or Vacheron). And what’s really important to to understand, is that a mechanical watch must be serviced from time to time, and servicing a chronograph watch, may not be cheap.
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