The "bling boom" may be over, but demand for certain rare and discontinued models continues to exceed supply, and you still won't have any luck finding a Daytona to buy at retail price. "That money is still out there," Altieri said, "and it's gonna find good quality assets to buy. In addition, US households - mostly the wealthiest ones who like to buy stuff like luxury watches - are still sitting on massive amounts of excess savings from pandemic emergency spending. "Those people aren't going to go away just because the market drops."Ī new generation of collectors is now figuring out a new balance between purely enjoying the horology and expecting a return on investment, he added.
What makes luxury watches a different asset from securities or crypto is the baseline of value established by enthusiast collectors across decades, Tian said. "While the level of growth in the secondary market since 2021 may be unsustainable, we believe that there is a strong baseline of value to be found in 'investment-grade' luxury watches," Morgan Stanley analysts Edouard Aubin and Elena Mariani wrote in a research note. Interestingly, it was the geopolitical uncertainty, market volatility, and high inflation of the '70s and '80s that in large part helped to fuel the rise of Swiss luxury watches as an alternative investment.īy those measures, the declining quarter for Daytona looks rather less bad, and more like a necessary correction of a market. Meanwhile, even the cash in US bank accounts has lost 9.1% of its purchasing power since a year ago as inflation climbs to the highest level since 1981. The crypto-fueled 'bling boom' comes to an endĪs Bloomberg columnist Andrea Felsted observed, a "bling boom" bubble emerged in the secondhand watch market that was inflated by gains in crypto and stocks, citing a Jeffries analysis that crypto wealth accounted for at least a quarter of the growth in luxury sales in the US.Īltieri said his customers tend to have their eye on their 401k when considering a purchase, and stocks and bonds have both taken a beating in 2022.Ī Goldman Sachs analysis found that the classic 60-40 portfolio - generally known to be the most conservative investing strategy balancing stocks and bonds - lost 17% in the first six months of this year, the biggest decline since 1932. Become A COACH Insider To Receive Exclusive Access To New Styles. One possible reason Daytonas are faring better for Altieri is that his company doesn't accept cryptocurrencies, which have been in a free-fall since April. Shop Watches & Watch Accessories For Women On The COACH Outlet Official Site. Since then, Altieri said he's seen a dip in the market for Daytonas at his shop, albeit somewhat less pronounced than the larger resale market tracked by Watch Charts.
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