Recent issues in the crypto space have led to an oversupply of second-hand luxury watches, according to a leading trading platform. As a result, prices for models sought after by major brands such as Rolex and Patek have plummeted, the company revealed.
Increased supply after the cryptocurrency crash is hurting resale prices for top 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, etc., a German online platform that lists hundreds of thousands of watches it has observed.
The supply of commemorative watches, such as a Rolex Daytona or a Patek Nautilus 5711A, “is now much larger,” Karlsruhe-based Chrono 24 He said in a statement cited by Bloomberg. She explained that the cryptocurrency crash is diluting the supply of more sought-after models on the used market.
The report notes that the fall in prices for the most sought-after watches is an indication that the market for second-hand luxury watches is beginning to lose ground. This after high crypto rates before that has led to the birth of a new class of luxury goods buyers and an unprecedented increase in prices for models from top brands.
These consumers are now on the decline, and the prices of the most sought-after watches are increasingly 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 merchants and private sellers find buyers, increased by more than 50% in the first half of 2022. And while the Patek Philippe Nautilus 5711A now sells for $190,000, up from $240 thousand in the first quarter, prices for several models from Cartier and Breitling have risen.
The German company also noted the increased demand for almost all models from Omega’s Speedmaster line, which were presented as a product of cooperation with Swatch. Chrono24 also expects to increase overall sales on its platform in the second half.
Cryptocurrency and luxury watches already have a history together. In May, Swiss watch company TAG Heuer announced that it is offering online crypto payments to its US customers through integration with Bitpay. This month, another Swiss luxury watchmaker, Franck Muller, announces He is launching an exclusive Binance NFT collection with limited edition hours.
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.
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