Instead of thinking about investing in stocks, buy expensive used watches. At least that’s what comparable earnings show. According to Bloomberg and moneyreview.grvalues used Rolex, Patek Philippe and Audemars Piguet watches they have grown at an average of 20% per year since mid-2018. In fact, this growth has made them an investment that outperforms the S&P 500 stock index in the US market.

In particular, according to a Boston Consulting Group and Watch Box report, from August 2018 to January 2023, the S&P 500 brought an average of 8% annual returns, while the basket of used watches from leading Swiss brands more than doubled in price. market trader.

This dominance comes despite the fact that the prices of some used models, such as the Rolex Daytona, Patek Philippe Nautilus and Audemars Piguet Royal Oaks, have fallen by a third since the market peaked in the first quarter of 2022, according to Bloomberg. notes. According to the aforementioned report, luxury watches can be an alternative to investing in stocks, bonds, art or collectible wines.

However, stocks will outperform the luxury watch market in the long run. From 2012 to 2023, the S&P 500 shows an annual growth rate of 12%, while watches are only 7%. It’s worth noting that price increases in the secondary market for expensive watches have accelerated dramatically during the pandemic as millennials and Gen Zers are stuck at home without many outlets to spend their money. From here they discovered a new, expensive hobby.

Many began to collect Swiss watches. During the same period, it was also noticed that fluctuations in the price of cryptocurrencies are now also affecting the prices of used watches. Finally, it is worth noting that the data shows that a new audience has entered the used luxury watch market. More than 60% of transactions are made electronically, while in new watches the corresponding percentage is only 15%. Moreover, while men still make up the majority of buyers, the number of women and young collectors is growing rapidly.