Secondary-Market ‘Rolex Bubble’ At Risk Of Imploding, Top Watch Trader Warns
Tue, 09/08/2020 – 20:40
At the start of September, the new Rolex Submariner was launched by the famed Swiss watchmaker in eight different variations. As new subs are released, the second market for mass-produced Rolex’s are in a “bubble” and at risk of ‘imploding,’ said WatchPro, quoting one of the world’s largest pre-owned watch traders.
WatchBox’s chief revenue officer Mike Manjos said new watch launches from Rolex were unveiled on Sept. 1. He said a global shortage of watches developed after the pandemic-related lockdowns that resulted in price increases for Rolex watches on the secondary market.
“Now that [Rolex] retailers have reopened, we are seeing global shortages and prices continuing to rise,” Manjos said.
“We have offices all over the world, and everywhere we find empty cases,” he added.
Manjos said investors bidding up Swiss watches with limited quantities or ones that are being discontinued would make sense, but he warned Subs and Daytonas, ones that are manufactured on an industrial scale, could soon see a shift in the market as new references are released that would result in declining prices on the secondary market.
“I understand rising prices for Hulks and Batmans that are no longer produced, but I am nervous about Submariners and Daytonas. These are watches that are produced in decent quantities,” he suggested.
“Yesterday a dealer was asking $11,500 for a stainless steel Sub. This is watch that used to sit in a case. I do not know why people would want that watch when a new one comes out, so it scares me that the air could come out of that bubble,” he said.
Manjos said “white Daytonas are selling for well over $25,000 and heading quickly towards $30,000. I think that is a piece we might see come back to reality in the coming weeks.
Manjos described, in the video below, the secondary market bubble developing in Subs and Daytonas.
Readers may recall, the Swiss watch industry experienced an “unparalleled shock” in the first half of the year as watch exports crashed thanks to the virus-related lockdowns. Though our reporting in August suggested the worst could be over for the industry.
To sum up, readers should probably avoid purchasing used Subs and Daytonas as supply comes online.
Source : zerohedge.comFollow us: