You might be wondering what's happening in the watch market, and we're here to provide you with the latest market update.
After reaching historic highs in February 2022, we are currently witnessing a significant dip in the prices of preowned watches. While this may prompt some to rush to their safety deposit boxes and consider selling their watches on the open market, it has also created a fantastic opportunity for those who previously saw their dream watches reach astronomical prices, making them unattainable. Now, these watches appear to be more affordable.
So, what's causing this sharp decline?
The cost of living crisis, which has affected the prices of essential goods like food, fuel, and raw materials, combined with the ongoing high levels of inflation, has created the perfect storm for reduced buying activity in the luxury sector. To be clear, people are still buying watches, but they are primarily serious collectors who now see an opportunity to purchase their desired watches at prices at least 25% lower than the highs we witnessed last year.
Is the market currently at its lowest point?
At present, the market seems to have decreased by at least 25%, bringing preowned watch prices for stainless steel models back to what we might consider “normal” levels. By “normal,” we mean prices that reflect a sustainable increase, not below retail.
So, what should you do? Should you buy or sell?
Your decision depends on your current situation. If you bought a watch with the intention of making a quick profit, I must say that this is not an ideal time for you. You may want to consider holding onto your watch or, at worst, selling it promptly.
However, if you are a genuine collector looking to purchase a high-demand watch at a fair market value, there has never been a better time to find the watch you’ve always desired.
What does the future hold for watch investing?
As a watch enthusiast and collector, I would advise against viewing watches solely as commodities to invest in. Instead, I recommend buying a watch that you truly enjoy and love. I predict that the market will continue to grow, albeit not reaching the highs of 2022.
We may see annual growth rates of 5-7% for stainless steel high-demand pieces and around 2-3% for bi-metal pieces. As for solid gold and other precious metal watches, it’s possible that their prices may dip below retail for the foreseeable future.