Your Rolex Watch Has Fallen In Value

Your Rolex Watch Has Fallen In Value
Carl Hazeley

over 1 year ago1 min

Mentioned in story

Source: A Collected Man, Chrono24, Bloomberg.

Earlier this year, the most-hyped luxury watches – the Rolex Daytona, the Patek Philippe Nautilus, and the Audemars Piguet Royal Oak – were trading at multiples above their retail prices on the secondhand market. But, lately, their prices have ticked lower…

It’s not entirely surprising: the luxury watch market has historically moved in sync with the stock market. And, with the slide this year in the S&P 500, demand for high-end timepieces has tumbled, and that’s left prices of the Daytona, Nautilus, and Royal Oak an estimated 25% below their peaks.

Big luxury watchmakers like Richemont are expected to show strong US sales growth in the next batch of quarterly results, but in the second half of the year, they could see a slowdown. See, Americans may be inclined to travel to Europe this summer to take advantage of the strong dollar and they may buy their high-end watches there, meaning those would-be US sales will be recorded in Europe. And when they return home, possibly having dipped into their savings, they may decide to rein in their spending heading into the holiday season.

Sure, a new surge in consumer spending in China might pick up the slack – or a resurgence in Russian buyers if the war in Ukraine ends sooner than expected. However, unless risky assets like stocks (or even crypto) pick back up, prices are likely to stagnate, with nothing we can do but… watch.

Finimize

BECOME A SMARTER INVESTOR

All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

Finimize
© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG