Not even time to recover from the consequences of Covid crisis and the economy of the European continent is going through a new phase of difficulty due to energy prices. The conflict in Ukraine and the speculative maneuvers that usually occur in these cases are putting the productive structure of the Old Continent in serious difficulty.
A consequence of the current crisis is rising prices, known as inflation. Following these increases, the ECB, for the first time in ten years, he decided to raise the rate di interest.
In this article we see the consequences on the market of the luxury in general and of the Watches in particular the increase in interest rates. We will also discover what are the ways to invest in the luxury watch as a means of protecting and increasing one's wealth.
How is the luxury watch market doing?
After i rises winter and spring, concerning above all some models of the most prestigious manufacturers, the prices they have readjusted to more reasonable levels. We are still above our end-of-2021 costs, but i peaks they seem to be behind.
Because the watch market has seen callare i prices after a seemingly unstoppable run-up? First of all, those who had bought for investment and those who had watches aside from before the rises chose the realization: this has brought a flow of watches on the market that has "stirred the waters" and diluted the excesses of the rise. But there is also another factor, which we will explain in the next section: the rise in interest rates.
Luxury goods and interest rates
Normally, gold and watches act as alternatives to the share price. Those who have savings to invest choose to channel them where the returns are highest, or at least where the losses are lowest, if you are in a recessionary phase.
After the 2008 crisis, central banks have assumed an increasingly large role in the financial economy, to the point of becoming the almost exclusive factor that determines the trend of stock market prices. "Never fight the FED," never bet against the central bank, is an old Wall Street adage that has never been as true as it is today.
The consequences of the Ukrainian conflict, as well as the speculative maneuvers on energy, led to a inflation notable gods prices in general. This blaze di inflation is addressed by western central banks in the predictable way: raising i rates di interest. Higher interest rates mean more attractive returns on the stock exchange - here's why the pressure on gold and luxury watches has eased and money has returned to finance.
Watch market: what prospects for the future?
What could be the next news in quotations of watches and luxury goods in general? There are two possible scenarios.
The first is that in which the rise in interest rates makes investments on the stock market “interesting” again. This would divert liquidity away from Watches di luxury, making the latter closer to their natural price and less subject to speculation: good news for all watch enthusiasts.
The second scenario is the most pessimistic: the rate hike maneuver fails to stop inflation because the crisis is on the supply side, due to the high costs of raw materials and the energy necessary for their transformation into finished products. In this case, i shelter goods would again be stormed, and who has invested in Watches luxury could get some satisfactions.
Only time will tell us what will become of the gods prices of luxury watches ...
If you want to stay updated on all the news on the watch market, subscribe to the newsletter of chronosect!
