Report: Rolex and Patek Philippe prices drop amid rising inventories

Prices for previously owned Rolex, Patek Philippe and Audemars Piguet watches will continue to fall as supply continues to rise, according to analysts at Morgan Stanley and market research platform WatchCharts.

A report from Morgan Stanley analysts led by Edouard Aubin and WatchCharts said that overall supply in the flea market is beginning to decline, but overall inventory levels remain high.

After surging in 2021, the prices of the most sought-after watches have fallen sharply on the secondary market amid economic worries and the cryptocurrency crash. The WatchCharts Total Market Index, which tracks the 60 most traded watches by value from the top 10 brands, fell about 5 percent in the first half of 2023.

Many high-end brands’ watches continue to trade above their retail prices because stores resort to waiting lists as demand outstrips supply. However, the number of watches that trade at or below retail price is increasing as in-store prices rise and secondary market prices fall.

Rolex owns 89 watches, representing 72 percent of used watch models tracked by WatchCharts, circulating above retail. There are 43 Patek Philippe watch models, or about 48 percent of that brand’s total, that command a retail premium as well as Audemars Piguet’s 34 models or about 71 percent of its watches. The report shows that Vacheron Constantin has 8 models, about 19 percent of its watches, that continue to dominate its retail prices.

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