Prices for luxury watches from brands such as Rolex, Patek Philippe, and Audemars Piguet have declined by an overall 23 per cent over the past two years, extending a prolonged downturn in the secondary market, according to Bloomberg.
The Bloomberg Subdial Watch Index, which tracks the 50 most-traded watches by transaction value, decreased by less than 1 per cent in June, indicating that the pandemic-era rally has definitively ended.
Over the past year, the index has fallen by 8 per cent, contributing to the 23 per cent decline over the past two years. This data, provided by Subdial, a UK-based watch trading platform, underscores the changing dynamics of the luxury watch market.
This decline contrasts sharply with the S&P 500 Index, the US stock market benchmark, which surged by 27 per cent over the past year.
Last year, Bloomberg reported that prices for luxury timepieces such as Rolex, Patek Philippe, and Audemars Piguet had appreciated by an average of 20 per cent annually since mid-2018, outpacing the S&P 500 Index as pre-owned luxury watches surged in value.
The top Swiss brands have experienced a significant downturn after reaching unprecedented levels on the secondary market in early 2022.
During that period, homebound shoppers diverted their pandemic savings into high-end timepieces. From June 2021 to June 2022, the Bloomberg Subdial Watch Index surged by 40 per cent, while the S&P 500 fell by approximately 1 per cent.
Earlier this year, Bloomberg reported that buyers of luxury Swiss watches were curtailing their spending amid economic and geopolitical concerns.
Although luxury Swiss timepieces continue to trade above retail prices, speculators who had invested in the market anticipating continued appreciation have been unsettled as equities and other investments offer better returns.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ