Now for the watch market news, 2020 saw a lot of uncertainty in many different sectors but the watch market held well with selected models from the finest Swiss watch brands.
Q1 2020 saw prices steadily rise after Christmas as stock shortage kept prices strong. When the first lockdown in March 2020 was announced a few of our investors and others liquidated their collections and there was more stock on the market for the first time in years, prices of the “go to” models by Patek, Rolex,RM and AP did correct by about -10% over the next few summer months as demand dropped.
I think it was a time when clients looked at their collections and sold what they didn’t want and re-built their collections, it gave everyone time to stop and see what they had and look at the values as the world slowed down. Also as people in general were not going out for meetings and socialising watch collections were thinned out at all levels. This gave opportunities for braver buyers to add to their collections at lower prices as uncertainty crept in across the globe. This was obviously a good time for the long game investor to buy and profit. We did trade many top end pieces over £150k that have now increased in value some 20/25%.
After the summer holidays were over most if us went back to work and attempted to resume some normality. Stock was very short as the watch manufactures in Geneve were still closed and production of new watches was at an all time low, and the retail shops closed or offering a mail order service, this drove the prices back up again very quickly as people acknowledged that that the rare highly sort after watches were a safe haven to invest their money.
Prices in second hand and grey market increased in Q4 remained high as more and more clients and funds looked to invest in premium brands such as Patek Philippe, Richard Mille, Rolex and Audemars Piguet.
AP as we predicted has strengthened over the last 18 months as many of the independent main agents have lost their accounts and therefore the tempting deals for dealers are no longer. AP Royal Oak remain in high demand where the Off Shore range have remained flat, the demand for the more sleeker watch continues to grow. The 39mm ultra thin and standard 41mm are doing the best right now in steel. Salomon and blue very low production “Boutique only” models are very rare and sort trading double the brochure price.
Patek Philippe rose gold 5712 & 5980 and white gold Nautilus ref 5740 & 5976 models have seen the best growth over the last 6 months, the steel models still remaining in high demand the 5712 and 5711 still highly sort as they are more affordable than the sportier 5980 chronograph model.
Rolex has stood up to its safe as houses reputation, the used market especially for gold and platinum Daytona has done very well up some 20% in the last 6 months. The steel sports range market is still about twice the brochure price in the open market but have steadied in the last year, as the sheer volume of global stock stops the price moving that much.
Richard Mille has gone from strength to strength and has our performed all the other brands in appreciation, We see many clients happy to buy a used watch for £200k without much hesitation, the RM11/003 has gone up 35% in 6 months. The Nadal and Bubba Watson have increased to £200k from £75k in 2 years. That brand is here to stay now.
Rolex, Patek, RM & AP have insisted that authorised dealers now conduct interviews with the proposed clients reading them the riot act about re selling the watches and black listing them if they sell them on, only increasing the desire to own these watches.
A small selection of models from the 4 brands I featured above are now global commodities and will continue to trade in huge volumes across the globe for decades to come. And historic records show if you select the correct watch stock with correct provenance your portable wearable investment will continue to be enjoyed and increase in value.
Please get in contact with myself or one of the sales team should you wish to discuss your collection