Recent problems in the crypto space have allegedly led to an oversupply of used luxury watches, according to a leading trading platform. As a result, the prices of models sought after by major brands such as Rolex and Patek have fallen, the company revealed.
Higher supply after cryptocurrency crash hurts resale prices of the best watches from Swiss brands like Rolex
The recent drop in crypto-asset valuations has directly affected the prices of luxury watches from Rolex, Patek Philippe, and the like, a German online platform that lists hundreds of thousands of watches it has observed.
Karlsruhe-based Chrono24 said in a statement, citing Bloomberg, that the supply of trophy watches, such as the Rolex Daytona or Patek Nautilus 5711A, “is now much larger.” She explained that the collapse of the cryptocurrency is diluting the supply of more sought-after models in the second-hand market.
The report notes that the fall in the prices of the most sought-after watches is an indication that the market for used luxury watches is starting to lose pace. This after high crypto rates before that led to the birth of a new class of luxury goods buyers and an unprecedented increase in the prices of models from the best brands.
These consumers are now on the decline and the prices of the most sought-after watches are getting more and more in line with other similar products. Tim Strack, Co-CEO of Chrono24, notes that this trend represents market consolidation.
Meanwhile, the executive revealed that trading volumes on the site, where private traders and sellers find buyers, rose by more than 50% during the first half of 2022. And while the Patek Philippe Nautilus 5711A now sells for $190,000, down from $240 A thousand dollars in the first quarter, the prices of several models from Cartier and Breitling rose.
The German company also noted the increased demand for almost all models of the Speedmaster range from Omega, which were presented as a product of cooperation with Swatch. Chrono24 also expects to increase overall sales on its platform in the second half of the year.
Cryptocurrency and luxury watches already have a history together. In May, Swiss watchmaker TAG Heuer said it was offering online crypto payments to its US customers through integration with Bitpay. This month, another luxury watch manufacturer from Switzerland, Franck Muller, announced the launch of its exclusive Binance NFT collection with limited-edition watches.
Do you expect the resale prices of top models from luxury watch brands to rise again as cryptocurrency valuations rise? Tell us in the comments section below.
photo credits: Shutterstock, Pixabay, Wikicommons, Andersphoto