Winding back time

Prices for luxury watches in the pre-owned market have declined about 40% from their peak in March 2021 according to the Bloomberg Subdial Watch Index. The index tracks the top 50 most traded models on the pre-owned market and account for over 20% of total spend globally. Rolex branded watches make up the majority of the index alongside Patek Philippe and Audemars Piguet. Prices are falling due to general economic worries among consumers and a halt to rapid wealth creation in the cryptocurrency community where a large number of new buyers came from. At the same time, inventory levels among pre-owned watch dealers remain elevated. However, many pre-owned luxury watches continue trading above their retail prices because retailers and brands are restricting supply of new watches.

Source: Bloomberg, September 2023.