The luxury watch market has shown exponential growth in the past few years. From a space that was only tapped by the rich and elite, suddenly started getting more attention, especially by the people with new money. Why is it so and why is the market growing consistently? Is the market going to be like this or we will see a crash or a bubble burst? Let’s discuss it here.
Reasons behind the Luxury Watch Market Boom
Just like the uptrend of any other industry, the increase in interest in luxury watches comes due to multiple factors. These factors are listed as follows.
The Crypto Boom
As soon as COVID-19 hit, a lot of people took their money and invested it into crypto. Eventually, we saw a rise a lot of cryptocurrencies. In March 2020, Bitcoin was trading around $7,000. Since then it has kept going up to the point where today BTC is trading for around $68,000. This clearly shows that people have 10x their investments. Besides BTC, there are many coins that have shown a growth of over 1000% in just a few months.
All of the money coming from crypto is then being invested into luxury watches. It has become evident that as soon as people make a good chunk of money, they want to spend it on cars, real estate, and everyone’s favorite – luxury watches. Crypto has gained so much attention that even businesses have started accepting crypto as a form of payment.
Social Media Attention
Many people have started focusing on the attention they get on social media. Some have even become social media influencers and having a luxury watch allows them to gain even more attention. So, in short, growth in social media has resulted in the growth of the luxury watch market. Having a flashy Instagram or TikTok profile only helps you to grow your account even further, which will eventually bring in more money.
Investment Perspective
Thanks to a lot of finance influencers, people are becoming aware of more investment opportunities. While in the early days, people used to only believe in Fixed Deposits and Real Estate, now people are utilizing other investment classes as well. These include Mutual Funds, Stocks and Crypto.
Besides that, people have also realized how buying a watch can get them great returns. For example, a Rolex Hulk could have been purchased for around $10,000 back in 2012. Today, they fetch close to $18,000. It is an impressive ROI considering that you also got to wear the watch throughout the years. With people being aware of these things, they do not want to miss out on such opportunities.
Will this boom continue?
Over the past few years, we have seen some really high asking prices on some watches. While this is something that might not continue for long, but one thing you can be sure of is that in the long run investing in watches will prove beneficial. Even if the watches do not give you a high return and you are at least able to get what you paid for it, it can be considered a good investment. This is because you got to wear and enjoy the watch while also having your money secure.
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