Update Aug 9th:
The bubble has officially burst. It seems that cypto woes continue to affect the luxury watch market in a big way. In a recent report from Bloomberg, prices of highly sought after watches, such as the Patek Phillippe Nautilus and Rolex Daytona, have dropped in staggering increments. The Nautilus, for instance, once stood at a whopping price tag of $240,000 on the resale market. Today, it sells for about $190,000- a $50,000 drop.
With many early investors cashing in on the initial crypto wave, prices of coveted watch brands soared. Collectors sought to reap the rewards in possessing such valuable pieces in their collection. However, as economic instability continues to be the new reality, these same buyers began offloading their prized purchases, with even more opting not to buy into these brands at all. Now, there’s even more Rolex, AP and Patek watches on the market (resale specifically) than before. As we’ve come to know, surplus is not something luxury brands are please to have when it comes to their products- it drives down demand as the air of exclusivity wanes.
The silver lining to all this? Well, if you’ve been in the market for a luxury timepiece but they were simply out of your budget, you’re in luck. Perhaps now is the time to swoop in and scoop that Rolex you’ve been dreaming of at a price tag that’s the cherry on top of a beautiful buy.
For the full report, follow this link.
Bloomberg
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When the pandemic seemingly began to lighten up, restrictions began dropping and the financial market returned to full swing. Spending on luxury goods hit all time highs. Between cryptocurrency capitalization and good’ol classic stock market gains, money was flowing and times were good- literally.
Image Credit: Eloisa Lopez/Reuters
In fact, a recent article from Bloomberg explains that the increase in post-pandemic wealth saw the rise in what’s known as “alternative investment instruments.” From MetaBirkins to classic timepieces, investors sought out diversified assets in which to park their money and continue making gains. During this time is when one of the giants of the luxury watch world, Rolex, became one of the hardest brands from which to purchase.
The most sought after style was the Rolex Daytona. Practically impossible to purchase in-store, prices soared on the resale market. With demand outpacing supply, the Daytona model saw pricetags in the upper five to low six digits. The same applied to other notable brands like Audemars Piguet and Patek Phillipe.
Image Credit: Jaztime.com
Though spending on luxury goods, including high-end watches, ramped up during the past few months, what’s to come might prove to be the ultimate party-pooper.
Read: Here’s the Real Reason No One Can Buy A Rolex
The impending recession, driven by rising interest rates, inflation and cost of living, are all an impetus to hit the breaks. Limiting how much they can splurge, this sentiment shared by buyers has caused prices of watches on the luxury resale market to have seen their peak (yes past tense). With supply now slowly surpassing demand, it’s a bit of a downhill dwindle from here.
Image Credit: @diamondsindubaii
Bloomberg author Andrea Felsted shares that “after reaching record highs earlier this year, prices for the most desirable watches on the secondary market, including the coveted Rolex, have now fallen… the bubble in secondhand timepieces was fueled by a combination of crypto and stock-market gains, stimulus cash and speculation. That is now unravelling.”
Felsted also notes that prices for Rolex, AP and Patek’s most popular pieces are now sitting at 25% under their peaks on the secondhand market.
Image Credit: @diamondsindubaii
If this continues, might buying a Dayona or Royal Oak become easier? If so, what does it mean for these brands that have capitalized on the scarcity of their goods? What do you think? Be sure to share your thoughts with us.
For the full Bloomberg article, follow this link: Crypto Meltdown Claims Rolex and Patek Philippe as Victims
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- Shirin posted 2 years ago
- last edited 2 years ago
