The average value of top models of Rolex, Patek Philippe and Audemars Piguet watches in the secondary market from August 2018 to January this year showed an average increase of 20% per year.
This surpasses the growth rate of the U.S. S&P 500 stock index, which averaged 8 percent annually, according to a Boston Consulting Group report.
Luxury watches are in demand as an alternative investment, the report said. Buyers are willing to pay for watches from the world’s best-known brands as well as leading independent manufacturers, including F.P.Journe and De Bethune, expecting their value to continue to rise. Indeed, luxury watches are performing well, especially in the long term, compared to traditional investment categories, analysts say.
Sales of high-end watches on the secondary market reached $22 billion in 2021, up from $18 billion a year earlier. New watch sales increased to $53 billion from $38 billion.
According to preliminary estimates, in 2022, the former is up about 9% to $24 billion and the latter is up less than 4% to $55 billion.
The average annual growth rate (CAGR) for sales between 2019 and 2026 is projected to be in the neighborhood of 10% for the secondary market, 7% for new watches.
From 2013-2022, the rate of price growth for luxury watches also exceeded the rate of appreciation for other “collectible” assets such as jewelry, handbags, wines, art and furniture, according to the report.
