Secondhand luxurious watches have become increasingly popular in recent times particularly among younger buyers, a recent report claims.
One of the most sought-after collectibles of the moment is a second-hand high-end watch.
The expensive secondhand watches of brands like Rolex as well as Patek Philippe have become increasingly popular in recent years, especially among younger buyers, as per an article published in the month of March in the Boston Consulting Group. Used luxury watches became more expensive as demand increased however, supply was scarce, BCG said.
They have become popular that the demand for them has outpaced general stock market, increasing around 20% per year between mid-2018 and January of this year, as compared to those on the S&P 500 index’s yearly growth rate of 8% in this time, BCG said.
Many collectors have embraced watches as not only accessories, but as investment pieces which can help protect against the effects of inflation and diversify their portfolios. Over the last few years, well-known alternative investments include the art market baseball cards, as well as the presently-struggle cryptocurrency.
Collectors usually pay twice or triple the price of an old watch, or one that recently left the shop as per Nicolas Llinas, a principal consultant at BCG’s consumer practice division who contributed to the report. For instance, Rolex Cosmograph Daytona watches with a retail value of $14,800 were recently were sold on secondhand websites up to $38,500 as per BCG. One of these platforms, WatchBox, helped fund BCG’s most recent research into watches.
Luxury watches of the future have been more difficult to find more than usual, due to during the earlier stages of the pandemic manufacturers shut down their factories or cut production. Collectors tend to find the watches they’re searching for on secondhand sites which have evolved in recent times, according to BCG.
Many people choose high-end watches to express their individual style. Some view them as treasures that will outlive other items of collector’s value. BCG found a box of pre-owned watches that outperformed indexes that track handbags art, and wine in the past 10 years.
Researchers from BCG claim there are two main reasons why that people are spending thousands of dollars on used watches and secondhand sites are becoming increasingly viable options to purchase watches and social media platforms have created buzz around watches as investments.
Bryan Ang, 31 years old is part of a rapidly growing community on Instagram of used luxury watches followers. He frequently shares photos of the watches that he has in his collection, such as his personal favorite that is that of the Rolex Datejust with a special white dial.
“I am interested in second-hand watches as rentals,” said Mr. Ang an agent of a fruit distributor in Manila. “You put it on for a time before you realise that it’s me.'”
Monsieur. Llinas from BCG said the younger generation is more likely to purchase pre-owned luxury watches and older customers tend to purchase timepieces brand new. The millennials take a more business-oriented approach when it comes to building collections.
“They aren’t as associated with certain models,” said Mr. Llinas. “Sometimes they’ll sell a watch to acquire one that’s more sought-after.”
In 2021, used watches made up more than a third of $75 billion market for luxury watches around the world as per BCG. Watch sales for preowned models increased by 3% in 2020, after the pandemic began, even though the number of new watches sold dropped 17% the year before.
Collectors have a tendency to go to watch buying websites that sell secondhand watches rather than visit the store to buy a watch or at auctions as per BCG. Sellers advertise their watches on websites that sell secondhand watches where buyers look for the most sought-after models as well as the most stylish models.
The most sought-after secondhand watches are those from the Patek Philippe Nautilus, Audemars Piguet Royal Oak and the Rolex Daytona, according to BCG. Certain models are available for sale at hundreds or even hundreds of thousands on auction sites for secondhand watches.
Some of the most vivid models available on secondhand marketplaces this week included an pink gold Audemars Piguet watch with rainbow sapphires that is listed at $315,000. A collector for $3,700 could own the Richard Mille model, which is adorned with a smiling face and the pineapple.
Mr. Llinas claimed that collectors are now attempting their luck by purchasing secondhand watches instead of waiting many years for watchmakers’ to sell their most sought-after models.
“If you really want to own a watch and are extremely obsessed regarding it” the man said “the best way to purchase it is to buy it on the second-hand market.”
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