Luxury watch investment outperforms S&P 500 stocks

Watch prices from brands such as Rolex, Patek Philippe and Audemars Piguet have risen at an average of 20% per year since mid-2018. Such data Today, March 9, the consulting company Boston Consulting Group (BCG) and WatchBox, a platform for reselling luxury watches, presented. At the same time, the average annual return of the S&P 500 index during this period was 8%.

The authors of the study note that thus expensive watches become an attractive alternative to stocks. “Luxury watches performed well compared to traditional investment categories, especially in the long term,” the authors of the report say. “While prices declined in 2022, reflecting the fall in the stock market and cryptocurrencies, an asset such as watches performed better, than stocks.

However, this is not true for all periods: in 2012-2022, the S&P 500 index rose by 12%, while the prices for used watches of these brands – by 7%. In 2022, the market for used luxury watches reached $24 billion, while sales of new luxury watches reached $55 billion. According to research firm LuxeConsult, by 2033 the market for used watches will reach $85 billion and overtake the market for new watches.

Recently, in the context of the volatility of the stock markets and the depreciation of cryptocurrencies, investors are increasingly apply to alternative investment options. In particular, investments in art objects, collectible wines and whiskeyvintage cars, etc.

Yana Rozhdestvenskaya