Crypto Brothers has stopped buying and reselling luxury watches

The luxury watch industry is in a bit of a downturn, and some of the blame may lie with fellow cryptocurrencies.

Last quarter, several major watch companies saw sales plummet. Part of the reason is that people who spent their savings on watches in previous years are now spending that money on other expenses, like travel. However, part of the reason is that speculators like the crypto fraternity no longer rely on luxury watches as a safe investment. wall street journal It was reported on Monday.

At the beginning of the pandemic, luxury watches were seen as an alternative asset for those looking to make a little extra money. Charles Tian, ​​founder of WatchCharts, said: WSJ Cryptocurrency friends say they have diversified their portfolios by buying up luxury watches and selling them. For example, during peak demand, a $14,550 Rolex Daytona could be resold for $47,000, according to Watch Charts data shared with the newspaper. On the secondary market, the same watch still sells for more than the price of a new model, but the resale premium is now only 43%.

Cryptobros and others are also turning away from the resale market because they don't want to get a watch they don't want. wall street journal he pointed out. In 2021, Rolexes that would have sold on used sites in less than three weeks have now been unsold for more than three months. Patek Philippe, on the other hand, can take around six months to change hands. Additionally, while crypto enthusiasts generally prefer sports watches, the market is moving towards smaller dress watches, making their investments less desirable.

This may not bode well for the watch resale market, or the watch market as a whole, but it's a big win for watch enthusiasts. A few years ago, you might have had to join a long waiting list to get your hands on a coveted model. This may be true to some extent, as brands like Rolex keep supply low to increase demand. WSJ (However, our research tells a more nuanced story.) Companies like Patek are using customer order backlogs to keep sales strong even during significant declines. You can.

The watch market has been on a roller coaster since the pandemic began. And while the crypto fraternity may be withdrawing from the secondary market, there is still room for other watch collectors to enter, perhaps at better prices than they were a few years ago.