Prices for Rolex, Patek Philippe and Audemars Piguet are down an overall 23% as they slipped on the secondary market again last month to extend a two-year decline, reported Bloomberg on Thursday.
The Bloomberg Subdial Watch Index, which tracks the 50 most-traded watches by transaction value, declined less than 1% in June, further signalling that a pandemic-era rally has come to end.
It’s fallen 8% in a year and 23% in the past two years, added Bloomberg, quoting data provided by Subdial, a UK-based watch trading platform.
That contrasts sharply with the S&P 500 Index, the US stock market benchmark, which surged 27% surge in the past year.
Last year Bloomberg reported that prices for luxury timepieces such as Rolex, Patek Philippe and Audemars Piguet had appreciated by an average of 20% a year since mid-2018, outpacing the S&P 500 Index, as values for pre-owned luxury timepieces surged.
Returns on luxury Swiss watches still beat stocks and crypto: report
Top Swiss brands have undergone a sharp downturn after soaring to unprecedented levels on the secondary market in early 2022, when homebound shoppers funneled pandemic savings into pricey timepieces.
During the 12 months to June 2022, the Bloomberg Subdial Watch Index surged 40%, while the S&P 500 fell about 1%.
Earlier this year, Bloomberg reported that buyers of luxury Swiss watches were reining in spending amid economic and geopolitical concerns.
Currently, while luxury Swiss timepieces continue to trade above retail prices, speculators who had piled into the market betting watches would keep appreciating have been shaken out as equities and other investments offered better returns, added Bloomberg.
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