After the past 18 months saw Rolex watches, especially in the used market, experiencing a sharp decline in prices, they are now finally showing the first signs of recovery, much to the delight of collectors and enthusiasts...
Prices of used Rolex watches may be stabilizing after continuous declines for over a year and a half, according to the Bloomberg Subdial Watch Index. The Subdial Index, which tracks the 50 best-selling Swiss watches by transaction value, has remained largely unchanged over the last 30 days. However, the Subdial Index for Rolex models has increased by 0.7% during the same period. This could be an early sign that the prices of used luxury watches, especially Rolex models, have finally hit bottom after the Subdial Watch Index reached its lowest levels in the past two years in November of last year.
Prices of high-quality Swiss watches experienced a meteoric rise immediately after the chaos caused by the 2022 pandemic sent the entire world into turmoil. COVID-19 lockdowns resulted in serious disruptions in the supply chain and production halts, creating a significant shortage of new watches in the market.
Some individuals saw an investment opportunity in this situation and inflated the prices of Rolex, Patek Philippe, and Audemars Piguet models. However, the cryptocurrency crash in April 2022 and the rise in interest rates sent the market for used luxury watches into a whirlwind.
The Subdial Index plummeted by more than 30% in the last two years, witnessing sharp declines until November of last year when prices of some Rolex models dropped by as much as 7% in just one month. However, signs of recovery began appearing last month, with models like the highly desirable Rolex Pepsi retaining their value. While it is still early to predict whether the market for used Swiss watches will experience a revival this year, the expectation that interest rates in the U.S. will begin to fall this year brings a positive sentiment to the market. Interestingly, the crypto market recently reached a 2-year high, which could also be a significant factor in stabilizing prices of used luxury watches. Whether the hysteria witnessed in 2020 will return this year? Well, only time will tell.