2020 has not been the best of years. In December 2019, a newly discovered virus identified as Covid-19 was first reported and has since had a huge impact on everything. From travel disruption, children’s education and mental health, through to purchases of motor vehicles and houses, to name a few.
With the entire country being placed into lockdown twice as of November 2020, the purchase of a new watch may be the last thing on your mind, and that is completely understandable.
So, when is a good time to buy that luxury watch you have always dreamed of? Here are some of the most frequently asked questions that watch lovers have asked during the lockdown.
Have Rolex closed production?
This is true. Rolex, Patek Phillipe, Hublot and Audemars Piguet did cease production during the first lockdown. After several thousand confirmed cases of Covid-19 were confirmed in Switzerland, the watch manufacturers decided to temporarily close their doors. This was no reflection on the cleanliness of their factories, but the fact that staff work side by side and their health and wellbeing was the priority.
Although they have all started to gradually reopen, you may find it more difficult to purchase your dream watch in the near future due to reduced stock. Now would be the time to invest in the luxury watch you have always wanted.
How will this affect the future of luxury watches?
If you do decide to purchase a brand-new luxury watch, the chances are you will soon start to see an increase in prices. The manufacturers will want to recoup some of the profits they lost during the lockdown. Up until recently, watch prices have remained stable, therefore, now would be the perfect time to make that purchase before prices rocket! Alternatively, why not consider a vintage watch? You are more likely to find those rare designs that are usually hard to locate. This is because the majority of people are remaining at home and unable to go out shopping.
Are luxury watches likely to become less expensive in the event gold bullion has a drop in value?
In general, Rolex will increase their prices every other year to ensure they are protected from rising costs. They also have a metal foundry from where they refine metals and use them in their watches. It is those precious metals that give the watches their reputation. For example, the Oystersteel and the Rolesor. It is for this reason that Rolex is unlikely to be affected if gold bullion has a drop in value, unlike other Swiss manufacturers in the industry.
Coronavirus is likely to affect the secondary market far more significantly than the retail market. The majority of countries believe that closing their borders won’t have a huge impact on stopping the spread. However, it is still very possible that in the future, overseas trading will become difficult and could stop completely. A lot of watches are shipped in and out of Asia, particularly China, Hong Kong and Japan. Covid-19 has had a significant effect on these countries, with not only quarantine but also riots.
The entire world has been affected one way or the other by Covid-19, but very slowly we are starting to get back to some kind of ‘normality’. Now is the best time to make that investment and purchase your luxury watch. It doesn’t have to be brand new! Perhaps you are a collector and appreciate vintage watches. If this is the case, we still have classics in stock and would be happy to help.