The used watch market has declined over the past two years. However, watches from the big three brands – Rolex, Patek Philippe and Audemars Piguet – still resell for higher than retail prices. These models are your best investment right now. .
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2024 was not a kind year for the watch market.
Watch prices in the secondary market have fallen for nine consecutive quarters after peaking in May 2022, according to Watch Charts and a report by Morgan Stanley.
The Big Three watchmakers – Rolex, Patek Philippe and Audemars Piguet – are increasing production in some cases and decreasing sales in others as the luxury goods market struggles amid rising interest rates and economic uncertainty. This reduction has made it easier to meet demand.
Meanwhile, people who bought watches as investments when the market was hot are rushing to cash out, and the resale market is overflowing with inventory. There are now four times as many used watches on the market as there were at the beginning of 2021.
Charles Tian, founder and CEO of WatchCharts, told Business Insider that traders “when they see the price going down and the market liquidity going down, they try to sell.” “That will flood the market with inventory, which will inevitably drive down prices.”
However, there are some bright spots. The big three still have long waiting lists. According to Watch Charts and a report from Morgan Stanley, 63% of Rolex models trade above their retail price. That figure is 60% for Piguet and 41% for Patek Philippe.
Prices in the secondary market are determined by supply and demand.
“Luxury brands like Rolex and Audemars Piguet have a strategy of maintaining limited stock at authorized retailers, which means that many of their most desirable models are consistently sold out in stores. ” said Paul Altieri, founder and CEO of online luxury watch retailer Bob’s. Regarding watches, he compared the three major manufacturers to high-end fashion players like Hermès.
“When demand exceeds supply, when supply is limited, or when demand is hyperinflationary, there is a large difference between secondary market value and retail price,” he added. Ta.
Tian said that while famous models such as the Rolex Daytona and GMT-Master II are always in high demand, other styles can soar into the stratosphere due to social media trends.
Other styles, like the Turquoise Celebration Rolex Oyster Perpetual, have unusual features such as colorful dials and are very popular, says Björn Lustmann, chief data communications strategist at luxury watch market Chrono 24, Business. told Insider.
Chrono24 looked at the company’s top performance brands and extracted the 10 models that sell at the highest premiums above MSRP.
While the numbers suggest these models are the smartest investments, Altieri cautions against buying watches solely for resale value.
“Find something you enjoy, not something you think will increase in value,” he said. “High-quality assets, such as real estate, stocks, art, and watches, will always increase in value. Buy what you like.”
