The title of this article may seem like an oxymoron. Rolex has never been synonymous with inexpensiveness and, indeed, it is not even now. But in the face of the peaks recently reached by prices of the Rolex of current production, especially the Sports in steel, return to end-2021 levels – still well above i price lists – is for many a relief.
But why i Rolex prices they are walking down? In which direction does the market? It agrees buy or wait for any further declines? Let's find out together in this article.
The first reason for the drop in prices: the abundance of supply
Why Rolex prices are down, after months of reaching unprecedented heights? The reason is to be sought above all in the dynamics of recent times.
The rise in prices seen in the first half of 2022 has led dealers and collectors to hoard, holding onto thousands of pieces as prices soared. This in turn drove prices up, in a sort of self-fulfilling prophecy. The watch marketHowever, like all markets, it has its rules, and one of these is that, with the exception of the manufacturers - and not even all of them -, nobody has the liquidity to stay in business without selling. So, having reached the point where it was no longer possible to keep the capital blocked, those who had luxury watches aside started selling them.
The second reason for the decline in Rolex prices: the availability of additional outlets for savings
The luxury watch is one of the safe haven goods, but certainly not the only one. With inflation due to the increase in energy prices, central banks found themselves, after many years, raising interest rates. Here financial and real estate investments are once again interesting again. On the one hand, stock market yields increase because the cost of money increases; on the other, property prices rise, and those who have liquidity and invest in it can obtain excellent business, not having to finance themselves with onerous mortgages. In all of this, even gold, after months of stagnation, has begun a gradual ascent.
Therefore, the availability of new outlets for liquidity and rising safe-haven assets led those who had immobilized their capital in watches to demobilize it, selling the timepieces and investing elsewhere.
How will the market go? Is it worth buying?
When there are strong fluctuations, before investing it is prudent to sit at the window and wait to see where the market is heading. In case instead you want to get rid of the satisfaction of owning a Rolex, purchase maybe long postponed due to high prices, the ongoing decline can be an opportunity.
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