Luxury Watch Prices Fall As Pressure On Crypto Wealthy Increases
As the fortunes of its target demographic are being decimated by the crypto crash, the surplus in the second-hand luxury watch market is surging.
The cost of some watches from luxury watchmakers Patek Philippe and Rolex have decreased as a result of this rout, said Chrono24, a company based in Karlsruhe, Germany. On its website, the company offers more than 500,000 items for sale.
Demanded watches like the Rolex Daytona and Patek Nautilus 5711A are seeing their prices fall as a result of the significant reduction in fortunes experienced by new secondary market customers who were formed during the crypto bull market that saw bitcoin rise to a $69K top in November 2021. According to Jefferies analysts, cryptocurrency wealth accounted for 25% to 30% of high-end sales in the United States in 2021. At the time of publication, the price of bitcoin, which peaked around $17.5K in June 2022, was $23980K, a 65 percent decline from its peak.
The second-hand market expanded with the aid of stimulus cheques and stock market gains.
Prices stabilize in a reasonable range
Tim Stracke, co-CEO of Chrono24, stated that the price reduction brings the well-liked models into line with costs for comparable watches. During the Covid-19 pandemic, prices for some models skyrocketed, with the secondary market recording annual gains of 10%.
The price of Audemars Piguet’s Royal Oak increased from $49K to $107K in April 2022. At its height, the Nautilus 5711A, which costs $35K, was going for $240K. It currently goes for about $190K. Other companies, including Cie Financiere Richemont SA, have done better, though.
In the first half of 2022, trading activity on the platform that connects private vendors and buyers climbed by 50%. Certain Breitling and Cartier items, as well as models like the Girard-Perregaux Laureato, have seen price increases.
Following a cooperation with Swatch, Chrono24 has also noticed a spike in demand for the Omega Speedmaster line. Sometimes, investors buy watches as a form of inflation insurance and a way to store assets. Breitling recently disclosed that, in cooperation with BitPay, it was now taking bitcoin payments.
McKinsey Luxury projects market expansion
In the past three years, Chronos24, which has the support of LVMH founder Bernard Arnault, has broached the possibility of an IPO, Stracke told Bloomberg earlier this year. It claimed that last year, transactions on its platform totaled $2.2 billion.
According to McKinsey, revenue from the secondary market will increase to $32 billion in 2025 from $29 billion today.
Luxury furniture retailer RH said that their sales were down 2–5 percent from the previous year as of July 1, 2022.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Annie
CoinCu News
Author
News
Luxury Watch Prices Fall As Pressure On Crypto Wealthy Increases
As the fortunes of its target demographic are being decimated by the crypto crash, the surplus in the second-hand luxury watch market is surging.
The cost of some watches from luxury watchmakers Patek Philippe and Rolex have decreased as a result of this rout, said Chrono24, a company based in Karlsruhe, Germany. On its website, the company offers more than 500,000 items for sale.
Demanded watches like the Rolex Daytona and Patek Nautilus 5711A are seeing their prices fall as a result of the significant reduction in fortunes experienced by new secondary market customers who were formed during the crypto bull market that saw bitcoin rise to a $69K top in November 2021. According to Jefferies analysts, cryptocurrency wealth accounted for 25% to 30% of high-end sales in the United States in 2021. At the time of publication, the price of bitcoin, which peaked around $17.5K in June 2022, was $23980K, a 65 percent decline from its peak.
The second-hand market expanded with the aid of stimulus cheques and stock market gains.
Prices stabilize in a reasonable range
Tim Stracke, co-CEO of Chrono24, stated that the price reduction brings the well-liked models into line with costs for comparable watches. During the Covid-19 pandemic, prices for some models skyrocketed, with the secondary market recording annual gains of 10%.
The price of Audemars Piguet’s Royal Oak increased from $49K to $107K in April 2022. At its height, the Nautilus 5711A, which costs $35K, was going for $240K. It currently goes for about $190K. Other companies, including Cie Financiere Richemont SA, have done better, though.
In the first half of 2022, trading activity on the platform that connects private vendors and buyers climbed by 50%. Certain Breitling and Cartier items, as well as models like the Girard-Perregaux Laureato, have seen price increases.
Following a cooperation with Swatch, Chrono24 has also noticed a spike in demand for the Omega Speedmaster line. Sometimes, investors buy watches as a form of inflation insurance and a way to store assets. Breitling recently disclosed that, in cooperation with BitPay, it was now taking bitcoin payments.
McKinsey Luxury projects market expansion
In the past three years, Chronos24, which has the support of LVMH founder Bernard Arnault, has broached the possibility of an IPO, Stracke told Bloomberg earlier this year. It claimed that last year, transactions on its platform totaled $2.2 billion.
According to McKinsey, revenue from the secondary market will increase to $32 billion in 2025 from $29 billion today.
Luxury furniture retailer RH said that their sales were down 2–5 percent from the previous year as of July 1, 2022.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Annie
CoinCu News
Other Posts
Related Posts
Latest
Pepeto’s $600K Presale Highlights Vision for Supporting Memecoins Ahead of 2025
Best Cryptos to Buy in November 2024: What Sets Qubetics Apart from Fantom and Immutable X?
Press Release
Pepeto’s $600K Presale Highlights Vision for Supporting Memecoins Ahead of 2025
Best Cryptos to Buy in November 2024: What Sets Qubetics Apart from Fantom and Immutable X?
