There was a day when buying a luxury watch was a very profitable business. The US tariffs are getting it again

The second -hand luxury watch market has lived a roller coaster in recent years. After a record time promoted by New millionaires of cryptocurrencies and of the bag, the bubble of luxury watches exploded. Now, factors such as the rebound of cryptocurrencies and changes in the commercial war initiated by the US are reconfiguring the recovery panorama of this exclusive market.

2020: cryptocurrency boom and stock market. Interest in luxury watches not only reflects a passenger fashion. The nature of luxury watches, considered as much as works of engineering art as An alternative investment form which sometimes exceeds the stock markets in profitability, also responds to global economic movements and the search for shelter assets.

During the pandemic and the later years, the rise of cryptocurrencies and the good moment of the bag generated a new wave of millionaires. Many of them, driven by the need to invest their earnings in tangible assets, launched a tropel to buy luxury watches.

This trend especially affected brands Like RolexAudemars Piguet or Patek Philippe, whose most coveted models were difficult to get in traditional stores due to their limited production. That dramatically increased demand by exceeding the supply. The result: a bubble that led to the second -hand market of these exclusive watches to shoot reaching Duplicate the price They cost new.

The collapse of the bubble. This bubble It soon exploded. When financial markets began to show signs of weakness, many of the investors who had acquired luxury watches They decided to sell themsaturating the second -hand market with the pieces that had bought at a price inflated a few months before.

The oversight and the lack of buyers caused the watches that were previously sold for twice their original price now barely had a way out, making prices fall to historical minimum values.

Stabilization and recovery factors. At present, although the second -hand luxury watches market still remains at modest levels, begins to show signs of moderate recovery. Such and as they highlight in Bloombergalthough the figures are far from the levels reached after the pandemic, the sector begins to recover, partly driven by the renewed interest of cryptocurrency investors after The rebound that has experienced In recent months.

The uncertainty about tariffs To European luxury products imposed by the US, including Swiss watches, may be braking that boom, since they affect both the final prices of sale in store, and the availability of products in key markets such as the American.

Tariff impact. After the announcement of the tariffs that the US was going to impose on Europe, American luxury watches suppliers reacted immediately. According to published data By Bloomberg, after the “Day of Liberation”, in which the beginning of the Trump’s commercial warthere was an increase in the purchase volume in the North American market of 150% as anticipation at the entrance of tariffs. A reaction that Not even Apple could avoid.

However, the next month, purchases fell 25% because simply, suppliers had already bought everything they could and the tariff sanctions of Trump had not appliedwhich caused the supply of new watches in stores to cover the demand. So second -hand market prices have remained stable.

The diversification of luxury. At the same time, the stagnation of Sales of luxury products in Asiaespecially in China, it has made luxury watches manufacturers have more stock for European and North American markets. That also contributes to stabilized second -hand prices because there is not so much pressure on the availability of new stores in store.

In addition, the rise of high jewelry for men is also contributing to the recovery of the second -hand market of luxury watches develop without shocks. Until relatively recently, watches were the only remarkable jewel in male fashion. However, in recent years The trend has changed and necklaces, bracelets and other jewels are part of male outfits. Not even Mark Zuckerberg He has been able to resist.

In 2023, the volume of that market was 8,500 million dollars, but by 2025 it is estimated that it will grow to 9,410 million dollars, indicating that male jewelry is gaining ground and watches are no longer the only option for high purchasing power investors.

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Image | Rolex