How luxury watches are outpacing stocks in value – prices for Rolex, Patek Philippe and Audemars Piguet continue to appreciate, as Gen Zs and millennials invest in more second-hand timepieces
Prices for Rolex, Patek Philippe and Audemars Piguet watches appreciated by an average of 20 per cent a year since mid-2018, outpacing the S&P 500 Index, as values for pre-owned luxury timepieces surged, a new report shows.
Stocks outperformed watches as an investment asset over a longer period
Over a longer period, stocks outperformed watches as an investment asset. The S&P 500 had a compound annual growth rate of 12 per cent between 2012 and 2022, while Rolex, Patek and AP watches averaged seven per cent.
Secondary-market watch price increases accelerated sharply during the pandemic
“Value and transparency are the drivers of the secondary market and that has been a driver of liquidity,” Sarah Willersdorf, a managing director and partner at BCG in New York, said in an interview.
More than 60 per cent of transactions were online compared to 15 per cent for new purchases. While men still make up the majority of buyers, the number of female and younger collectors is growing rapidly, she added.
Boston Consulting Group and WatchBox co-funded the consumer research conducted for the report
The secondary luxury watch market grew to US$24 billion in 2022 compared to the primary retail market, which was worth US$55 billion. The pre-owned market is expected to grow by nine per cent a year to US$35 billion by 2026, as prices rise and more people begin collecting watches, according to a BCG forecast.
LuxeConsult, an independent Swiss analyst and consulting firm, recently forecasted that used luxury watch sales would overtake the primary retail market by 2033 with sales surging to US$85 billion.
- According to a new report, prices for brands like Rolex, Patek Philippe and Audemars Piguet watches have appreciated by 20 per cent a year since 2018, outpacing the S&P 500 Index
- The findings were proposed by Boston Consulting Group Inc. and secondary market dealer WatchBox, which counts NBA’s Michael Jordan and activist investor Bill Ackman among its clients