The secondary market for luxury watches has been in a significant decline over the past two years. Prices for the most sought-after models from Rolex and Patek Philippe have collapsed, while investors have turned to other, more lucrative markets. The trend marks the end of a post-pandemic boom for high-end watchmaking.
A steep fall in prices
The Bloomberg Subdial Watch Index, which tracks the 50 most traded watches, reveals some alarming figures:
The data contrasts sharply with the S&P 500's 27% gain over the same period, highlighting the disconnect between the luxury watch market and overall stock market performance.
The end of post-pandemic euphoria
The Swiss luxury watch industry is going through a difficult period after experiencing historic highs:
The reasons for this bubble:โ Confined consumers investing their savings in expensive watchesโ Speculation on the continued rise in prices
Major Swiss brands face the crisis
The Swiss watchmaking giants are particularly affected:
These prestigious brands, which had seen their prices soar, are now facing a brutal market correction. Although many models are still trading above their retail price, the trend is clearly downward.
Cartier: The exception that proves the rule
Against all expectations, some brands are standing out:
This performance by Cartier demonstrates that the market remains dynamic for brands offering better value for money.
A market in full restructuring
June 2024 revealed contrasting trends:
These moves suggest a reshuffling of the cards in the luxury watch market, with growing interest in brands offering better value for money.
The fall in prices of luxury watches on the secondary market marks the end of a speculative era for high-end watchmaking. This brutal correction is forcing investors and collectors to rethink their strategies. For lovers of fine mechanics, this period could offer opportunities to acquire coveted pieces at more reasonable prices. Nevertheless, the major watchmaking houses will have to adapt to this new market reality to maintain their appeal to an increasingly informed and demanding clientele.
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