Luxury watches like Rolex or Patek Philippe are in a nosedive, the value is the lowest since 2021, it’s time for deals.
The world ofluxury watchmaking it’s an intricate jungle of very high costs, precious timepieces and lots and lots of economy. Where so much money circulates, there inevitably appear those who, without any passion for timepieces, try to take home some safe investments and earn several thousand euros.
Since the pandemic, the world of collecting in general has experienced a Renaissance, and the prices of watches, statues, cards or cars have skyrocketed. In fact, from the two-year period 2020/21 to today, a brand like Rolex was considered a safe haven for making investments, given the ever-increasing price of their products.
Rolex is only one of the most coveted brands, perhaps the best known, but it is representative of an entire phenomenon: Rolex watches fresh from the dealer are now impossible to findor rather, hidden behind waiting lists that extend to several years, while the secondary second-hand market is plagued by prices up to two or three times higher than the original one.
High demand, low supply, in short. But this phenomenon could not last forever, and if until today Rolex, Patek Philippe, Cartier and so on were considered safe investments, from tomorrow this certainty will no longer exist. On the other hand, if you intend to buy a luxury watch for yourself, prices are finally falling.
The Bloomberg report
Bloomberg Subdial Watch Index, a well-known luxury watch shopping and marketplace site, reported the first drop in Rolex and Patek Philippe prices since 2021. Two years of unstoppable growth have finally come to an end: only last September was there a decline in 2,2% in the prices of watches from Swiss companies.
This is a significant drop, which could be the standard-bearer of a market trend. But why did this decline occur? Understanding the reasons is not only interesting, but can help any enthusiast or investor to predict the next market movements.
Interest rates and cryptocurrencies
The first reason that caused the drop in prices – in the used market, remember – is the increase in the interest rate for Rolex and Patek Phillipe, along with other companies such as Cartier, Omega and Tudor. The latter three brands recorded declines of respectively 0,4%, 1,2% e 1,8%levels almost comparable to the two companies mentioned previously.
The second reason was the collapse in the value of cryptocurrencies, a system linked to that of luxury watchmaking but not only. The market in general is influenced by the trend of cryptocurrencies, which in the last period have lowered their value and therefore purchasing power. So if you aim to get rich with a Rolex this is not a good time, but if you intend to buy it to wear it, you can’t miss the opportunity.
2023-12-12 05:33:01
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