With interest rates no longer hugging 0.5% and crypto up but volatile, it’s tricky to know where the most reliable place is to invest is right now. However, we’re starting to witness some movement in the luxury watch market that could mean now is the smart time to invest in a second hand Rolex.

Rolex Prices Levels Out

The pandemic kickstarted a huge number of Rolex purchases that is only now starting to show signs of waning. While the Swiss watch industry enjoyed a boom in exports and a boost to the coffers of billions (reported as over $25 billion in 2022 alone), it seems that appetites are changing.

Some of the blame for this lies in the current economic landscape. Global instability and cost of living crises have impacted all sectors of society with luxury watch fans, collectors and investors making more careful decisions about where and when to spend their money.

Luxury Watch Waiting Lists Winding Down

Swiss watchmakers may be able to evidence a drop in demand as their waiting lists reduce in size. For those that couldn’t wait for a box fresh Rolex, buying a second-hand model was the way forward and it was a vibrant market. Although the preowned market is also not as busy as it once was, yet it’s critical that we add some context to the ‘Swiss downturn’ narrative to understand that this slow-down could actually represent an unparalleled opportunity.

Swiss Watch Boom and Bust

This is where it’s important to investigate the details behind the headlines of declining sales. Yes, there has been a shift in where people are choosing to spend their money and luxury Swiss watches are included in this, but it’s also important to understand the sheer scale of the impact of the last three years on brands, like Rolex and Patek Philippe.

The first signs of slow down were spotted in November 2023, when luxury brand conglomerate, Richemont, results showed that half-year figures charted a downturn of 3% in watch sales. In the US and Americas, this was much greater, with a dip of 17%.  Richemont are well positioned to spots trends in luxury watches, with brands IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget and Vacheron Constantin all from their stable.

While these figures quantify the slow down, they don’t take into account the massive ‘gold-rush’ style quest to pick up luxury watches at any costs after the pandemic.

Luxury Swiss Watch Demand in 2020

One of the unforeseen impacts of the pandemic in 2020 was the surge to buy luxury goods. For some, it was the need to remind themselves that life was for living and that money was only money. For others, they may have had an unplanned-for travel budget to invest in something. Swiss watches represented a solid and reliable opportunity twinned with aesthetic beauty and romantic narrative attached.

While Swiss watchmakers feared a collapse in the industry while workshops were shut found, instead, that they returned to a huge waiting list of people that wanted to wear Swiss.  

Pre Pandemic Luxury Watch Demand

While the last few years have represented a massive increase in Swiss luxury watch sales, now slowing down rapidly, the figures do not take into account the massive demand for luxury Swiss watch brands before the pandemic.

Rolex have had waiting lists for new release models for years – in particular, the stainless-steel sports models including the Rolex Submariner and the Rolex Daytona. There is no evidence to suggest that the demand has slumped below pre-pandemic figures, merely that the relentless post-Covid pursuit of Swiss luxury watches may be on the wane.

Levelling The Playing Field – Luxury Watch Price Changes

The Swiss watch giants didn’t merely enjoy the sales rush; they leveraged it. Yes, demand soared, inflation rose taking costs along with it, but Swiss watchmakers matched the rises. Rolex raised prices twice in 2022 and, again, twice in 2023. They weren’t alone in their price hikes, with other Swiss watchmakers making the most of the boom time.

Is This an Opportunity to Invest in a Pre-Owned Rolex?

Simply put, yes. There may exist a certain set of circumstances where the waiting lists on some models will shorten to allow them to be fulfilled in their entirety - at a more reasonable price point. This filters down to the pre-owned market and could kick start a drop in Rolex prices. For those that understand there will always be a demand for Rolex, this could be the opportunity to secure a model that you had thought was outside your reach.

For those hoping to invest in their first preowned Rolex, this balance in cost and availability could see you secure quite a bang for your buck.  Swiss watchmakers are the best in the world and this can colour how they view the world. Yes, there is still a huge demand for Swiss watches but we’re on the other side of the curve in terms of pricing and stock. When those that can invest do invest and the market levels out again, waiting lists will grow, demand will increase and the people that acted now will have a robust investment on their hands.

If you own a Rolex and you are looking to sell your Rolex watch to upgrade, Suttons and Robertsons purchase all Rolex watch models for the best prices, get in touch with us today for a free quote.

Alternatively, if you want to retain ownership of your Rolex watch but have a short term cashflow challenge, we offer secured loans against Rolex watches where you can release up to 70% of the value of the Rolex.