The price of used luxury watches has declined for the first time in two years.
According to the latest report from Idex, the state of the stock market, widespread decline in cryptocurrency value, as well as rises in interest rates and inflation, has led to the drop in price.
The report identifies a decrease in the resale value of the Rolex Daytona and Patek Philippe Nautilus luxury timepieces, following a surge that peaked earlier this year. Luxury watches have been used by some as an investment vehicle amid volatile stock market conditions.
The Rolex Daytona Black Dial watch was originally valued at $US12,400 and climbed as high as $US44,500 earlier this year. The watch has now declined to between $US35,000 and $US40,000.
A used Patek Philippe Nautilus is currently valued at around $US192,800, which is a significant decline in value from a high of $US237,700 early this year.
Volatility in the market has also reported been fueled by the ongoing conflict between Russia and Ukraine.
Concern over sales
At the same time, the sales performance of watches and jewellery in the US has been underwhelming across March, April, and May compared with the same period last year.
According to research from Idex, the decline in sales performance may mark the end of the post-pandemic sales frenzy.
The figures remain positive when compared with performance in 2019 when there was negative year-on-year growth for much of the year.
In March of 2022, sales rose by 10.3 per cent when measured against March 2021. Sales in April 2022 briefly spiked, improving by 16.2 per cent compared with April 2021. In May of 2022, there was a 10.5 per cent sales increase in sales compared with May of 2021.
Idex attributed the dip in sales performance to consumer sentiment, as inflation in the US hit a 41-year high in May.