In recent years, luxury watches have experienced a resurgence in popularity, gaining admirers not just for their craftsmanship and style but also for their potential as alternative investments. The secondhand watch market, in particular, has been commanding more recognition due to growing buyer interest and a shortage of the best models.

Investment Potential in Luxury Watches

Investment Potential in Luxury Watches Leading brands such as Rolex, Patek Philippe, and Audemars Piguet have become highly chased after by investors, with the expectation that their value will continue to rise. This belief is not unfounded, as luxury watches have historically performed well compared to traditional investment categories. According to a study from Boston Consulting Group (BCG) the average watch prices over the years from August 2018 to January 2023, for top models from Rolex, Patek Philippe, and Audemars Piguet rose at an annual rate of 20%, outperforming the S&P 500 index's annual rate of 8%. Even during market downturns and economic crises, luxury watch prices demonstrated remarkable resilience. This positive financial performance has attracted new buyers, leading to a significant increase in preowned watch sales, which reached $22 billion in 2021. LuxeConsult, a Switzerland-based analyst and consulting firm, forecasts that the market for vintage and pre-owned watches will rise to 79 billion euros by 2033.

Changing Perception of Secondhand Market

Changing Perception of Secondhand Market As certain new watch models have become nearly impossible to acquire through traditional retail channels, buyers have turned to the secondhand market to find them. Once associated with back alley deals and questionable authenticity, the secondhand market has undergone a transformation. Today, it is characterized by transparency, authentication services, and a knowledgeable community of buyers and sellers. The market plays a crucial role for collectors seeking rare and special timepieces, considering that nearly 95% of watches are no longer in production. Younger customers, inspired by the craftsmanship and mechanics of luxury watches, are increasingly entering the market. They are drawn to the investment potential and social element, engaging with communities on platforms like Reddit, Instagram, and TikTok.