The prices of pre-owned luxury watches, featuring esteemed brands such as Rolex, Patek Philippe, and Audemars Piguet, experienced a significant decline following the US Federal Reserve’s decision to raise interest rates as a measure to curb surging inflation. According to the Bloomberg Subdial Watch Index, a reliable indicator of the secondary watch market, this downward trend has been evident.

Now, a glimmer of optimism emerges as the US central bank signals the likely conclusion of its most substantial series of interest rate hikes in a generation. Federal Reserve Chairman Jerome Powell suggests that lending costs may see a reduction next year, paving the way for a potential relief in the market. Christy Davis, co-founder of Subdial, a UK-based secondary replica watch market dealer and trading platform, sees this potential course reversal as a catalyst for a positive shift in valuations for used timepieces.
“As we look towards 2024, the potential for a soft landing of stable and eventually declining rates is reason for optimism in the watch market,” states Davis.
The Bloomberg Subdial Watch Index, monitoring prices for the 50 most traded watch models by transaction value, has witnessed a decline of approximately 10% in 2023. It now stands at its lowest level in over two years, following a peak in early 2022.
During the pandemic, demand for high-end pre-owned watches from top Swiss brands surged as consumers, confined to their homes, utilized surplus funds to acquire luxury timepieces through online channels. However, this fervor waned as borrowing costs escalated, leading to a diminished appetite for speculative assets.
The most significant drop in fake watch prices occurred between April and August of 2022, coinciding with the period when the Federal Reserve implemented its most substantial rate increases, as noted by Davis.
While prices for sought-after watch models have experienced substantial declines, watches such as the Rolex Daytona, Patek Philippe Nautilus, and Audemars Piguet Royal Oak continue to command premium prices on the secondary market, surpassing their retail values.