Bottom? Turmoil In Used Rolex Market Might End After Fed's Bizarre Pivot 

The secondary market for pre-owned Rolex and Patek Philippe watches has been spiraling down since peaking in early 2022, mainly because the Federal Reserve ended helicopter-dropping trillions of dollars in stimulus checks and was forced to begin the most aggressive interest rate hiking cycle in a generation to curb inflation. Now, the Fed's bizarre, unexpected pivot this week has spurred hope that a bottom nears for the luxury watch market. 

Bloomberg spoke with Christy Davis, a co-founder of Subdial, a UK-based secondary watch market dealer and trading platform, who believes the turmoil in the secondary luxury watch market is ending. 

"As we look toward 2024, the potential for a soft landing of stable and eventually declining rates is reason for optimism in the watch market," Davis said.

The Bloomberg Subdial Watch Index, which tracks prices for the 50 most-traded watches by value on the secondary market, has plunged 39% since peaking in March 2022 at around 44,500 pounds. 

Demand for luxury used watches has cooled over the last 20 months. As a whole, luxury has plunged into turmoil because of soaring borrowing rates hammering demand for watches, purses, and jewelry. 

Perhaps Davis is correct. Thanks to the Fed, Rolex Daytona, Patek Philippe Nautilus, and Audemars Piguet Royal Oak watches could soon find a bottom under looser financial conditions. 

Rolex Daytona

Patek Philippe Nautilus

Like anything else, there are risks to bottom fishing.