Watch Market Collapse! Why Did Secondary Market Prices Fall So Much?

over the last few years we've seen a number of assets spike in value only to decline once interest rates Rose at Peak prices there were all sorts of claims both in the media and by people in the business of buying and selling them that these were new asset classes and that everyone should consider investing in them the spike in luxury watch prices is maybe a little bit more interesting than some other asset prices that Rose rapidly in value in the pandemic years as watch prices St started Rising well before the pandemic and while the pandemic Eros stimulus added fuel to the fire there were a few other factors at play at the peak certain hype watches like the ceramic bezel Rolex Daytona the pek Philip 5711 and the AP Royal Oak 15202 were trading at multiples of their new prices on the used Market at the peak Rolex boutiques were open with no watches available in the store and dummy watches on display in the window a rather bizarre situation it makes you wonder what the store employees did all day with the huge price spikes an idea began to spread that what are mostly mass produced watches were now Investments that you could buy put in a safe and maybe retire on one day collecting watches was no longer a hobby for wealthy connoisseurs it was now pitched as a way for regular people with good taste to grow their weld to be clear luxury watch prices have always seemed High a high price is a basic requirement of being a luxury good and the high price is frankly a part of their appeal we've discussed the concept of Vin Goods in Prior videos these are Goods that seem to contradict the basic economic laws of supply and demand as demand for them increases as their price goes up the term Vin Goods comes from The Economist Torsten Vin who is best known for introducing the term conspicuous consumption a difference between luxury watches and other luxury goods is that they tend to be more durable both in terms of not wearing out quickly like clothing cars expensive Foods or holidays but many also appear to have stayed in fashion for decades the hype watches of the last few years have designs that originated in the 50s 60s and70s twis neutrality during the second ...