Watch enthusiasts recently snapped up a flurry of used Rolex and Patek Philippe watches, as a wave of urgency hit the market at the end of April. Many buyers chose to indulge in these luxury timepieces in light of looming tariffs proposed by then- U.S. President Donald Trump. The implications of these tariffs spurred a decisive rush among collectors and casual buyers alike, who wanted to secure their investments before potential price hikes.
According to Subdial, a prominent watch dealer and trading platform, the usual trend shows a surge in activity right after customers receive their end-of-month paychecks. However, April was exceptional, witnessing a remarkable 160% increase in trading volume compared to typical payday spikes, which normally hover around 112%. This suggests that not only were buyers excited about new purchases, but they also felt a heightened sense of urgency due to the tariff news.
Christy Davis, the founder of Subdial, elaborated on this phenomenon in a recent interview. “People heard about the tariffs and went, ‘Oh shoot, let’s buy now,’” Davis explained. They waited patiently for their paychecks, and once those funds hit their accounts, sales volumes skyrocketed. It’s a relatable moment for anyone who’s felt the rush of impulse shopping when a good deal is about to vanish.
This urgency echoed a similar response across the ocean, with reports from Switzerland indicating a dramatic rise in watch exports—almost a fifth higher than the previous month. Notably, shipments to the U.S. more than doubled, as buyers scrambled to snag luxury items that were also targeted by the impending tariffs. The Federation of the Swiss Watch Industry noted that watches made of precious metals, steel, and bimetallic materials experienced the most significant sales growth.
However, Jean-Philippe Bertschy, an analyst at Vontobel, warned that this surge in U.S. sales might not reflect a sustained increase in demand. He suggested it was more a temporary reaction from exporters looking to sidestep higher tariffs. In fact, Swiss watch exports fell by 6.4% globally in the same month, hinting at a troubling trend for the industry as a whole.
On a brighter note, the secondary watch market has demonstrated resilience since the lows observed in February, following the pandemic. The Bloomberg Subdial Watch Index has seen a buoyant rise of about 5.3% leading into late May, reclaiming ground lost since prices peaked three years ago as lockdowns began lifting. However, while the market is showing signs of recovery, it still has a long way to go before reaching those pre-pandemic highs that many enthusiasts fondly remember.
For anyone driven by a passion for fine watchmaking, these trends ripple through the community, intertwining the thrill of collecting with the practical implications of market forces. Whether you’re a seasoned collector or just starting to appreciate the craftsmanship of these timepieces, staying informed about these shifts can help you make thoughtful decisions in your watch journey.
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