Ever since the secondhand luxury watch market peaked in April 2022, the question has been: When will prices finally bottom? Well, the latest data from Bloomberg Subdial Watch Index shows after six months of stabilizing, prices are sliding once more as capital markets remain in a deep freeze, the Federal Reserve continues to hike interest rates aggressively, and wealthy folks are dialing back spending due to recession fears.
The Bloomberg Subdial Watch Index, which tracks prices for the 50 most-traded watches by value on the secondary market, has reversed a multi-month countertrend from a low. Prices fell 1.4% over the last 30 days.
Down 2.5% in the last six months.
Down 26.2% in the last 12 months.
And back to levels seen before the watch bubble.
The Rolex Explorer II Orange Handle 216570, Rolex Datejust 36 126234, Patek Philippe Nautilus Bue 5711/1A-010, and Rolex Datejust 41 126333 were some of the largest decliners, down between 3.5% to 3% on the month.
To better visualize the watch bubble implosion, the yearly change for these watches has crashed between 40.5% to 30.6%.
Recall some of our commentary on the watch market over last year:
- Investors' Clock Out' Of Rolex Bull Market As Demand Cools
- "Boom Time Over": Rolex Prices Crash In China
- Rolex, Patek, And Audemars Piguet Watch Prices Continue Drop As Crypto Winter Worsens
- Top Watch Retailer Shares Crash As Rolex Bubble Deflates
- Biggest Rolex Online Reseller Cuts Jobs As Watch Prices Continue Downward Spiral
Downward pressure will continue on the secondhand luxury watch market as long as the capital markets freezing persists. The latest information from Bank of America shows wealthy consumers are pulling back on spending. Readers should keep an eye on the Subdial index, and if the prices take out lows from earlier this year, then another leg down in prices will be seen. If not, then prices will continue to trade sideways from here.