The luxury watch industry is in a steep decline, and cryptocurrency enthusiasts may be partly to blame.
Sales at several major watch makers plummeted last quarter, in part because people who spent their savings on watches over the past few years are now spending that money on other expenses like travel, but it’s also because speculators like cryptocurrency enthusiasts are no longer counting on luxury watches as a safe investment, The Wall Street Journal reported Monday.
In the early days of the pandemic, luxury watches were considered an alternative asset for people looking to make a little extra cash. WatchChart founder Charles Tian told The Wall Street Journal that crypto enthusiasts were diversifying their portfolios by collecting and selling luxury watches. For example, at peak demand, a $14,550 Rolex Daytona resold for $47,000, according to data provided to The Wall Street Journal by WatchChart. While the same watch sells for a higher price on the second-hand market than a new model, the resale premium is currently just 43%.
As we head into Q4 2024, even the venerable Rolex Submariner is declining in value. Bob’s Watch
According to The Wall Street Journal, crypto enthusiasts are also shying away from the second-hand market, as they don’t want to be stuck with watches they don’t need. Rolexes that sold within three weeks on second-hand sites in 2021 are now stuck for more than three months. Meanwhile, Patek Philippe watches can take up to six months to buy or sell. Additionally, crypto enthusiasts generally prefer sports watches, but the market is shifting toward smaller dress watches, making their investments less attractive.
While this may not bode well for the watch resale market, or even the watch market as a whole, it’s a huge boon for watch enthusiasts. A few years ago, you might have had to join a very long waiting list to get your hands on a coveted model. The WSJ writes that to some extent this may still be true, as brands like Rolex keep supply low to spur demand (though our research tells a more nuanced story). But companies like Patek have been able to tap into their customer backlogs and keep sales strong even in the bigger downturns.
The watch market has been on a rollercoaster ride since the pandemic began, with crypto enthusiasts retreating from the second-hand market, creating room for other watch collectors to step in and perhaps fetch better prices than they did a few years ago.
author
Tori Latham
Tori Latham is a digital staff writer at Robb Report. She was previously a proofreader at The Atlantic and has written for publications including The Cut and The Hollywood Reporter. When she’s not writing…
read more
Source link
