In December, we asked if the secondary market for pre-owned Rolex and Patek Philippe watches was finally bottoming after a vicious bear market.
After four months of stabilization, the Bloomberg Subdial Watch Index, which tracks prices for the 50 most-traded watches by value on the secondary market, appears to have found at least a temporary floor between $33,800 and $33,600. The index has crashed 42% since reaching a high of $58,570 in March 2022 (during the Covid mania).
Demand for luxury used watches has cooled over the last two years. Luxury has plunged into turmoil because of soaring borrowing rates hammering demand for watches, purses, and jewelry. But ever since the Federal Reserve pivoted in the interest rate hiking cycle in December, prices of used Rolex Daytona, Patek Philippe Nautilus, and Audemars Piguet Royal Oak watches have been possibly bottoming:
Rolex Submariner
Patek Philippe Nautilus Stainless Steel Moonphase
Audemars Piguet Royal Oak Jumbo Ultra Thin
Rolex Daytona
Rolex GMT-Master II Pepsi
The only issue for those attempting to bottom fish is if the Fed's policy shift was premature...
