MARKET UPDATE

The market goes on holiday

July is traditionally a slower month in the watch market as collectors go on holiday. This year prices have been relatively buoyant throughout July, pointing to a market that’s in a much stronger place than in 2022 and 2023.

The Bloomberg Subdial Watch Index (GBP) was down 1.4% for July, to finish the month at £25,668. With collectors on holiday throughout the summer months, prices tend to tick down in July as traders reduce prices in search of liquidity within a quieter market.

The Bloomberg Subdial Watch Index across the past 7 months

In 2022 the market declined 4.4% throughout July, and in 2023 it came down by 2.4%. So why do prices look relatively strong in 2024?

The macro story suggests that watch prices are approaching a dip. Following decades of prices steadily increasing for high demand models from Rolex, Patek Philippe and others, the secondary watch market experienced a COVID boom, and a subsequent price correction that has been playing out since. Uncertainty around the global economy - with major shocks in the form of high levels of inflation and major conflicts in Ukraine and Gaza, as well as a record year of elections for the world - have injected a sense of hesitance that investors and collectors are beginning to feel less uncertain around.

For most models, the price change across July was relatively muted, with more than half of the watches experiencing a decline of less than 2%. There were a few exceptions with the Patek Philippe 5990/1A up 1.6% to £83,576 and the solid gold Rolex Daytona 116528 up 3.9% to end the month with a market price of £30,087.

As we approach the end of summer we’re expecting to see a more active market. We’ll be back next month to give you another update as we move through August and September, ensuring you keep your finger on the pulse.

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