Tick Tock: Rolex and Patek Philippe Prices Fall Amidst Crypto Market Crash

Following the most recent market crash, the secondary market for luxury watches is experiencing falling demand.

What Happened: Following all-time high luxury watch market prices in 2021, the latest crypto crash has caused a corresponding drop.

Even as U.S. inflation started to rise, stocks and cryptocurrencies were in a multi-year bullish upswing. Furthermore, with the U.S. government handing out stimulus checks, there was a large-scale injection of money into the economy.

Consequently, luxury watch consumers propelled a major bubble in the secondary market for brands, such as Rolex and Patek Philippe.

Related Link: 5 Iconic Watches Of Movie And Celebrity Lore That You Can Buy — At A Steep Price

As reported by Bloomberg, the Subdial50, made up of a consumer basket of the leading 50 most traded watch models, has fallen in the past year from north of £45,000 ($53,400) to around £36,000 ($42,700).

The years of 2020 and 2021 saw watches being looked at as an alternative asset class, serving as an effective store of value. However, as macroeconomic climates worsen and fears of an impending recession settle in, the recent plunge in cryptocurrency and stock prices has caused the secondary market for luxury watches to stumble and drop.

Hyped watch models such as the Rolex Daytona, Audemar Piguet Royal Oak and Patek Philippe Nautilus are sitting around 25% below their all-time highs.

Thus, as uncertainty looms over the global economy, luxury watches may continue to see falling consumer interest.