Luxury watches have experienced a further decline in the secondary market, extending a two-year downward trend as investors shift focus following a post-pandemic rally.
According to the Bloomberg Subdial Watch Index, which monitors the transaction values of the 50 most-traded timepieces, the index fell by less than 1% in June. Over the past year, it has dropped by 8%, and by 23% in the last two years. In stark contrast, the S&P 500 Index, a key benchmark for US equities, surged by 27% over the same period.
Top Swiss watchmakers such as Rolex, Patek Philippe, and Audemars Piguet, which saw their secondary market prices skyrocket in early 2022 due to pandemic-driven spending sprees, have faced a significant reversal. During the 12 months leading up to June 2022, the Subdial Index had surged by 40%, while the S&P 500 experienced a modest decline of around 1%.
Despite a general downturn, certain luxury watch brands are still seeing price increases. Cartier watches, tracked separately by Subdial, have gained nearly 2% over the past year. The French jewelry brand, part of the Richemont group, has gained traction among collectors, partly due to its relatively lower price point compared to Rolex, Patek Philippe, and Audemars Piguet.
In June, Rolex prices remained largely stable, while Tudor, a sister brand, saw a decline. Prices for entry-level luxury watches, including those from Swatch Group’s Omega and Cartier, showed modest gains for the month, according to Subdial’s data.
The decline in luxury watch prices reflects a broader shift in investor behavior as traditional luxury timepieces face increasing competition from equities and other investment options.
