The collapse of crypto market prices is credited with helping boost the supply of luxury brand used watches for people looking to buy them second-hand.
Germany-based online watch trading platform Chrono24 has more than half a million watches listed for sale on its site.
The supply of trophy watches such as the Rolex Daytona or Patek Nautilus 5711A “is now much larger,” Chrono24 said, according to an email statement to Bloomberg. The recent fall in cryptocurrency valuations “has directly impacted pricing of luxury watches from brands like Rolex and Patek Philippe.”
Surging valuations for cryptocurrencies minted a new class of luxury buyers, leading to an unprecedented price increase for models, particularly from brands such as Rolex, Audemars Piguet and Patek, Bloomberg reported.
The overall market capitalization of crypto assets has fallen from $3 million at its peak on Nov. 21, 2021, to less than $1 trillion in June. The price of Bitcoin reached an all-time high of close to $69,000 in November, and it has since plunged in value, falling 50 percent this year alone. At one point it traded for less than $20,000.
Trading volumes on Chrono24, which connects watch buyers with dealers and private sellers, have jumped more than 50 percent in the first half of 2022. The company is considering an IPO.
The price of a Patek Philippe Nautilus 5711A, a blue-dialed steel sports watch that sells for about $35,000 retail, surged to $240,000 in the first quarter, according to Chrono24. Now it’s fetching about $190,000.
Other price increases reported by Chrono24 include Girard-Perregaux Laureato and many Cartier and Breitling models. Demand has also risen for nearly all Omega Speedmaster models, sister brand of Swatch, Chrono24 told Bloomberg.
According to a study by online retailer Bob’s Watches earlier this year, Rolex watches outperformed traditional investment options such as gold, real estate, and even stocks. But over the last few months, inflation and recession fears have severely affected the valuations. Prices for some discontinued Rolex watches have slumped by as much as 50 percent, Luxury Launches reported.
Photo: Rolex watch by Matt C, https://www.flickr.com/photos/145839163@N06/
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