Luxury costs the price we are willing to pay
Premium lots, defined as the rarest pieces, offered for sale in their original condition and with pedigree, are increasing in price at each new sale.
This trend has already been observed in the collector car market, which has witnessed increasingly significant price increases for cars in their original condition. The recent 50th anniversary of the Lamborghini Miura and the attention given to this model demonstrate a two-tier pricing system. While prices for cars that have had the foresight to come to us in their original mint condition go through the roof in terms of both potential value and sales value, those in a slightly inferior condition do not share the same destiny, although their prices are still rising.
Beyond the rarity of lots in both the collector car and watch markets, other factors can explain the trend for rocketing prices for premium products. First up is the number of buyers, which has continued to rise, automatically causing an increase in sales prices due to the principles of supply and demand. This well-documented price inflation for luxury goods has also attracted new players to the market who are looking for safe bets in a world of uncertain investments. Finally, some collectors and traders who have enough examples of a rare model or of a sought-after speciality such as cloisonné enamel dials are wise to acquire pieces on the rise. This guarantees an intrinsic increase in the price of the watches they already own, but also sometimes a dominant position that allows them to play the market.
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