Luxury Watches Are Becoming Gen Z’s Favorite Inflation Hedge

Something shifted after younger investors watched inflation surge past 9% in 2022 while crypto markets imploded spectacularly multiple times.

The pandemic produced twin crises of confidence where trust in paper assets eroded as inflation devoured purchasing power, while purely digital bets like NFTs proved worthless once hype cycles ended.

Luxury watches emerged as perhaps the most interesting beneficiary of this quality shift toward assets with genuine scarcity, serviceability, and provenance.

Deloitte’s 2024 watch study found that one in five consumers now view watch purchases explicitly as investments rather than lifestyle acquisitions, while market projections show the sector reaching anywhere from $62 billion by 2030 to potentially $134.5 billion by 2032 depending on methodology.

The Gen Z Investor Mindset Focuses on Lasting Value Over Fast Trends

The difference between how Gen Z and Millennials approach luxury reveals itself most clearly in what they actually value when opening their wallets. Where Millennials often chased novelty and digital experiences, Gen Z leans heavily into durability, heritage, and authenticity, as Deloitte’s research documents across categories.

Many in this younger cohort actually prefer walking into physical stores and using trusted resale channels after watching online hype cycles crash repeatedly. There’s a deep wariness about purely digital value propositions that comes from growing up watching crypto fortunes evaporate, NFT collections become worthless overnight, and influencer schemes collapse the moment new buyers stop showing up.

Social media paradoxically drives this flight toward tangible assets rather than away from them. TikTok watch content and Reddit finance discussions have democratized information about luxury timepieces in ways that would have been impossible a decade ago. Price index sites like WatchCharts and Subdial make real-time valuation data accessible to anyone, turning what used to be opaque dealer knowledge into transparent market information.

The interest translates into actual buying behavior rather than just aspiration. Chrono24 found that over one-third of Gen Z respondents already own or plan to buy a high-quality watch, with 20% of those aged 18 to 24 planning purchases within the next 12 months. These aren’t vague someday intentions but near-term buying plans backed by research and saved money.

Financial Times coverage documented Gen Z fueling second-hand watch growth in a sector already substantial at roughly $27 billion and expanding double digits annually. Marketplace data consistently shows younger buyers’ outsized engagement with pre-owned inventory, where they can access quality timepieces at more reasonable entry points while still capturing appreciation potential if they choose models carefully based on the same data-driven approach they apply to stock investing.

What makes watches resonate psychologically goes beyond just financial returns into something deeper about permanence and identity. A well-made mechanical watch represents craft with service lifecycles measured in decades rather than the 18 months before your smartphone becomes obsolete. It challenges the planned obsolescence defining most consumer technology, offering something you can potentially wear for fifty years or pass to children.

Watch Values Are Outpacing Inflation and Matching Equity Returns

The secondary watch market has found its footing after the sharp correction that worked through 2023 and 2024, stabilizing in ways that actually make watches more credible as investments because pricing now reflects genuine demand rather than speculative fever.

Morgan Stanley and WatchCharts analysis showed Patek Philippe up 1.1% quarter over quarter in Q2 2025, while Rolex dipped just 0.2%, meaning the blue chips have essentially flatlined or turned slightly positive after the excesses got wrung out.

This shift from froth to fundamentals, as analysts describe it, matters because it suggests a sustainable base rather than artificial support waiting to collapse.

Brand concentration at the top creates structural advantages that smaller watchmakers simply cannot replicate. Morgan Stanley and LuxeConsult research shows Rolex commanding roughly 32% of Swiss watch market value share, with the top four brands exceeding 50% combined.

When one manufacturer controls nearly a third of the entire luxury watch market, its core references essentially become blue chip holdings with corresponding stability that collectors can actually rely on when thinking about capital allocation.

Real-time data from 2025 reveals genuine strength emerging in specific references after the broader correction. WatchCharts monthly tracking caught the Rolex Sea-Dweller climbing 2.8% in June 2025, while broader blue-chip baskets moved from sustained decline through early 2024 into flat or modestly positive territory by mid-year. The pattern suggests the worst has passed and values are finding support at levels where serious collectors see opportunity rather than just speculators hoping for quick flips.

Moreover, popular Rolex references sell remarkably fast, with the Submariner 126610 showing median time to sell of just 21.5 days as of September 2025, moving faster than 96% of watches tracked by WatchCharts.

When you can liquidate a $15,000 asset in three weeks through established marketplaces with transparent pricing, you're operating with fluidity approaching publicly traded securities rather than the months or years typical for art, wine, or classic cars.

During inflationary periods, wealth historically rotates toward tangible stores of value, a pattern visible in Knight Frank's luxury investment tracking and reinforced by how Deloitte frames watches in their research. The correlation played out clearly in 2021 and 2022 when consumer prices surged and watch valuations followed, though the subsequent correction reminds us that gains concentrate in specific brands and models rather than lifting everything indiscriminately.

New Platforms Are Making Watch Investing Accessible and Liquid

The transformation of watch buying from relationship-dependent dealer transactions into transparent marketplace commerce has fundamentally altered who can participate and how confidently they can transact across borders. Platforms like Chrono24, Bezel, and WatchBox create global buyer pools with pricing transparency that directly benefits liquidity and market efficiency.

Bezel alone processed over $750 million in listings during the first half of 2025, providing granular brand demand data while implementing counterfeit screening that addresses one of the biggest barriers preventing newcomers from buying with confidence.

In addition, authentication infrastructure evolved dramatically from the caveat emptor days when purchasing any watch outside authorized dealers meant accepting substantial fraud risk.

eBay's Authenticity Guarantee now covers watches at $2,000 and above, with optional coverage starting at $500, meaningfully lowering fraud concerns for first-time buyers who'd otherwise stick to authorized dealers despite paying premiums. Breitling went further by issuing blockchain digital passports through Arianee that provide cryptographic proof of authenticity and complete ownership history, bringing transparency impossible just five years ago.

Gen Z's natural comfort blending passion with analytics makes them perfect adopters of this newly liquid market structure. They follow WatchCharts and Subdial indices the way older generations tracked stock tickers, use social media for cross-market price comparisons, and rely on platform guarantees from Chrono24 and Bezel rather than just trusting individual sellers with unverifiable reputations.

Financial Times coverage of Gen Z's secondary market orientation captures how this generation approaches watches with investment discipline older collectors often lacked, treating purchases as deliberate allocation decisions rather than impulse acquisitions justified after the fact.

Timepieces Represent More Than a Passing Trend for Gen Z

Mechanical watches offer something increasingly rare in modern consumer culture: products explicitly designed to be repaired, serviced, and passed across generations rather than replaced on upgrade cycles. This aligns powerfully with Gen Z's documented preference for buying less but buying better, combined with active resistance to planned obsolescence defining most technology and fashion.

Deloitte's research shows younger buyers explicitly seeking products with multi-decade lifespans, making luxury watches almost uniquely suited to these values compared to most contemporary luxury categories where obsolescence gets engineered in rather than designed out.

The investment case for core references from Rolex, Patek Philippe, and Audemars Piguet rests substantially on their demonstrated ability to hold value while maintaining deep secondary market demand. Steel icons like the Daytona, Submariner, and Nautilus aren't just watches people admire but pieces they actively hunt when opportunities emerge, creating bid depth that supports genuine liquidity.

Regional demand provides additional confidence about sustained growth rather than cyclical boom dependent on one geography's economic health. Japan and the Middle East continue growing even as China softened from pandemic peaks, while American demand for top brands proved resilient through 2024 and 2025, as Vogue Business documented across luxury categories.

This geographic diversification means the watch market doesn't depend on any single region's luxury spending patterns, spreading risk across different wealth centers and cultural approaches to collecting.