Why are Rolex prices sliding in the secondary markets?

Rolex, Why are Rolex prices sliding in the secondary markets?
Image by PIRO4D from Pixabay

LAGOS (CoinChapter.com) — There has been a decline in the price of Rolex watches in secondary markets.

To recap: Rolex is a Swiss brand manufacturer that manufactures high-end watches. Watch collectors always pride themselves on buying Rolex watches and selling them at higher prices because Rolex watches retain their value over time.

But those watch collectors might have to reconsider because the price of second-hand Rolex watches has started declining.

Speculators are currently sitting on significant losses due to the sharp decline in the price of second-hand Rolex watches.

The economic downturn caused by the rising cost of food and energy due to the war between Russia and Ukraine is currently damaging consumer sentiment and threatening global economic growth. Customers are presently afraid to spend their money on luxury watches. 

Rolex price drops below $14K

The Rolex market index indicator by WatchCharts tracks the performance of its watches in the secondary market. The index tracks the average price of 30 popular Rolex models with high trading activities.

Rolex watch prices aggregated
Rolex watch prices aggregated. Source: WatchCharts.com

The chart above indicates that the average price of Rolex watches increased from $14,000 in February 2022 to almost $16,500 in April. The chart shows a sharp decline in the Rolex watch’s average price from its peak. The freefall in the price of Rolex watches has continued till July 2022 to slip below $14,000.

Discontinuing watches

Another reason for the decline in those watches is the Rumour that Rolex is planning to discontinue some watches.

For example, the Oyster Perpetual, launched in September 2020 in various sizes and dial colors, has risen to incredible prices through 2021. The prices of some watches went up to more than seven times their retail value at the authorized dealers. 

The rumor continued to the early part of 2022.

For example, the 41mm Oyster Perpetual was traded for around $32,000 at the start of 2022 (compared to the retail price of $5,700), but the watch price skyrocketed by 50% to nearly $48,000 by the end of March. The watch’s current price is around $36,000 in the secondary market.

The rumors of discontinued watches from Rolex caused a lot of excitement in buying watches because collectors believed that the price would continue to rise.

Unfortunately, the price of those watches started to drop when the company confirmed that it would not discontinue those watches.

Some discontinued watches saw a less spike in their prices in the first quarter of the year, and the price of those watches declined slowly after the first quarter. For example, the Sea-Dweller models, which prices increased from around $20,000 to $21,500 in the first quarter, have slowly declined to around $18,500 today. 

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