During the recent worldwide pandemic, the watch market experienced an unhealthy surge, largely driven by the rise of cryptocurrencies such Bitcoin, economic factors and consumer spending habits. This led to a hype around luxury watches, especially among a younger and newer demographic interested in watches. However due to the fact that they didn’t have enough knowledge prior to buying, it also caused panic sell when the Market started showing signs of distress. During that time prices were going higher and higher every week. Overall we saw a 90% sometimes higher price surge depending on the watch. Patek Philippe Nautilus were up 80% than the year prior. Meaning if you had bought a Patek Philippe 5980/1R in January 2019 for $175K, your watch was now worth around $300K+ by mid 2020. Some experts called it a bubble but it was matter of supply and demand. The less watches were available for sale, the harder it was to find, therefore the price was also higher to buy. Even some daily GMT Rolex watches like the Pepsi Ref: 126719BLRO on jubilee went from $17k to $35K during the pandemic.
Towards the first quarter of 2022, prices started declining loosing 30-60% overall up until December 2022, the market started regaining some health, February 2023 we saw some gains, but in a more stable and healthy manner. This year, we are seeing a trend towards collectors, vintage pieces, and established brands, indicating a shift towards more stable and reliable options in the timepiece culture. Additionally, the recent opening of China’s market has led to more business opportunities, as it represents a significant percentage of watch deals in the secondary market. As prior reported luxury watches are still outperforming the S&P 500 according to Bloomberg.
Based on these observations, it is possible to predict that the watch market in 2023 will be positive, with some positive gains and better performance than other asset classes. However, it is important to keep in mind that the market can be unpredictable and subject to change based on various factors such as economic conditions, consumer trends, and market forces. According to BCG the watch market will be worth 100 billion by 2026.
Overall, it seems that the watch market is stabilizing after a period of hype, and collectors and established brands are driving the market. If this trend continues, it is possible that the watch market will continue to perform well in the future. We are optimistic about the future of the industry and look forward to the opportunities that the market will bring in the coming years.
