The Blubber

Per Bloomberg

Some of the most luxurious watches were able to outperform stocks and crypto. These included Rolex, Patek Philippe, and Audemars Piguet, which only dropped by a mere 8% in 2022 compared to the S&P 500's 19% and Bitcoin's 65% drop.

Eduard Aubin, who led Morgan Stanley analysts, shared how all asset classes dropped significantly over the past 18 months. However, he mentioned how hand watches were lower than in other markets.

Aubin: “Nearly all asset classes are down so far over the past 18 months but the market for second hand watches is actually down less in comparison to others,”

Morgan Stanley and WatchCharts reportedly estimated that the number of Rolex watches in the market increased by 19% in Q4 of 2022 alone. The supply of Rolex rose by 104% across 2022.

When it came, other bands like Patek Philippe and Audemars Piguet saw 110% and 78% growth, respectively, throughout 2022. Rolex watches reportedly dropped by 5.1% in the fourth quarter alone, mostly because of three major models.

The models that cost Rolex watches to drop include the Daytona, GMT Master II, and Submariner. Audemars Piguet lost 6.8% in the fourth quarter of 2022 alone; Patek Philippe saw a 6.7% drop.

Other brands like watches made by Richmont owned A.Lange & Sohne rose by 1.7% in Q4 of 2022 due to the high-end watches sold in extremely limited numbers. LVMH-owned TAG Heuer secondary market prices rose by 3.3%.

In November, it was reported that prices for Rolex, Patek Philippe, and Audemars Piguet were expected to drop further in the fall. The estimate was that the watch brands would drop by at least 21%.

This came shortly after another report shared how the watch market was flooded with supply as prices for pre-owned brands like Rolex, Patek Philippe, and Audemars Piguet watches were expected to drop further.

See flow at unusualwhales.com/flow.

Other News:

• Prices for the most popular pre-owned Rolex, Patek Philippe and Audemars Piguet watches will fall further
• Watch market flooded with supply

Resources:

Bloomberg