Popularity in luxury watch resales has grown significantly over the past few years. With the preowned market now estimated at $5 billion per year, designer brands are now exploring how they can take advantage of resales.
It comes as Audemars Piguet revealed they would be opening stores primarily for the selling and purchasing of pre-owned watches. While the firm hasn’t confirmed whether they will buy second-hand watches for cash, customers will be offered trading and part exchange services.
The majority of second-hand luxury watches business is conducted online or via specialized retailers, and with demand increasing, prices have risen above retail prices. Steel sports watches such as Rolex’s Sea Dwellers and GMT Masters and Patek Philippe’s Nautilus and Aquanaut are just some of the watches with the biggest demand.
Carr Watches investor and entrepreneur Aaron David Scott explains that second-hand watch prices are continuing to rise. With some watches having a five-year waiting list, Aaron states that the pre-owned market is the easiest and quickest way in which investors can get their hands on such pieces.
Many argue that you should only buy something if you admire it, but with second-hand watches being so fruitful, investing whether you like it or not is often advised. Over the last 20 years alone, Patek Philippe and Rolex second-hand watches have outperformed many other investments. New buyers from around the world, including Asia, mean this market is only going to expand.
The New Watches Market
The watch market has seen a steady increase over the past few years with demand in certain models increasing as pieces become limited in numbers. The combination of social media and the internet has further increased popularity and awareness. As new models are released, discontinued models become even more sought-after such as the Rolex GMT Master and Daytona, which have risen at least 20% in value every year since the 90s. While no one truly knows what the future holds, with celebrities consistently adorning the must-have watch, interest and prices are only going to soar.