The prices of the most coveted luxury watches have declined once again on the secondary market, extending a two-year downward trend as investors seek alternatives following the end of a pandemic-era boom.
The Bloomberg Subdial Watch Index, which monitors the 50 most-traded watches by transaction value, dropped less than 1% in June. Over the past year, the index has fallen 8%, and it has decreased by 23% over the last two years, according to data from Subdial, a UK-based watch trading platform. This decline contrasts sharply with a 27% rise in the S&P 500 index, the benchmark for the US stock market, over the past year.
Prominent Swiss brands such as Rolex, Patek Philippe, and Audemars Piguet experienced a significant reversal after reaching unprecedented heights on the secondary market in early 2022. This surge was driven by pandemic savings funneled into expensive timepieces by homebound shoppers.
From June 2021 to June 2022, the Bloomberg Subdial Watch Index soared 40%, while the S&P 500 saw a slight decrease of about 1%. Despite many of the most-traded models still selling above retail prices, speculators who had banked on continual appreciation have been disappointed, as other investments, like equities, have yielded better returns.
Nevertheless, prices for certain brands are on the rise. The Subdial index for Cartier watch prices has increased by nearly 2% over the past year. Timepieces from the French jewelry brand, owned by Richemont, have gained popularity among collectors. Cartier watches are generally less expensive than those from Rolex, Patek Philippe, or Audemars Piguet and typically trade below retail value.
In June, Rolex models, which dominate the index, remained mostly stable, while prices for its sister brand, Tudor, declined. Meanwhile, entry-level luxury watches and indexes for Swatch Group’s Omega and Cartier brands showed modest gains, according to Subdial’s data.
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