Time to discuss the Gen Z second-hand luxury watch trend

Time to discuss the Gen Z second-hand luxury watch trend

The boom in Gen Z snapping up pre-owned luxury watches is no longer a mere TikTok trend. Rather, it’s becoming one of the sector’s key growth drivers. 

Market research by Deloitte found that Gen Z – those born between 1997 and 2012 – is driving demand for pre-owned watches. Their findings show that 40% of Gen Z intend to buy a pre-owned luxury watch in the next 12 months. In contrast, just 20% of baby boomers plan to make the same purchase. 

For many Gen Z buyers, a luxury watch is an alternative asset class, akin to cryptocurrency. It’s something that can be sold off later for a profit – with the additional benefit of being a stylish status symbol in the meantime. 

But as with any asset class, it’s important buyers understand what they’re getting into. For young buyers in the market for the first time, insurance has a key role to play in reducing their risk. 

How to beat the counterfeiters
The perennial risk of buying a pre-owned watch is inadvertently buying a fake. 
Precise figures are difficult to find, but some estimates put global sales of counterfeit watches at 40 million each year. This far outstrips legitimate supply (Rolex produce about a million watches annually, for instance).
Increasingly sophisticated fakes can fool even the most knowledgeable experts. At a 2021 auction, Omega paid €2.8m for a rare 1957 Omega Speedmaster that was later revealed to be a ‘Frankenstein’ watch – an amalgam of mostly authentic parts from other vintage watches. 
Uncertainty surrounding the history of a watch makes insurance more difficult to secure. To prove authenticity and provenance, insurers need to see extensive documentation – including serial number and previous ownership – which unauthorised sellers may not provide. 

At DUAL, we recommend clients only buy through reputable providers after getting an independent professional opinion. 
A good option is to use a ‘certified pre-owned’ programme, offered by brands including Rolex and Richard Mille. Watches are officially authenticated with all the important paperwork included. This speeds up the underwriting process, helping to avoid delays in coverage. 
Hoping to flip a watch? DUAL can insure the profits.

One survey of Gen Z buyers found that 45% consider luxury watches to be a good investment. The overall picture of investment potential, however, is mixed. 
The pre-owned watch market has cooled since its pandemic-fuelled heights. For example, according to the ChronoPulse Watch Index – a global price indicator for the secondary watch market – the Rolex index has dropped 19% from its March 2022 peak. The Patek Philippe index – which surged in 2022 – is down more than 40% since its peak. 

However, some models are more likely to make gains than others. Take the Rolex Datejust. Between 2010 and 2025, the watch appreciated by 639% from €1,000 to €7,000. And luxury watches can outperform other asset classes. One study found that the luxury watch market offers annual returns of 5.68%, with lower volatility than stocks, real estate, and bonds. 

While a luxury watch isn’t guaranteed to appreciate, rare and discontinued models often do. This is where quality insurance comes in. 
Standard market insurance policies often assume depreciation. Luxury watches that hold their value or appreciate over time are at risk of being underinsured. That’s why it’s important to have specialist insurance that reflects the current market value. 

At DUAL, we’ll pay up to 150% of the amount insured, subject to an independent professional valuation within the past three years. 
Be aware of how a luxury watch affects your home insurance

The fine print of a contents insurance policy may not be front of mind when buying a coveted watch. But it’s an essential part of keeping both the watch and its owner protected. 

Standard market policies are not typically designed to accommodate high-value luxury goods. Gen Z buyers may be drawn to the more affordable secondary market, but they’re still spending up to €8,500 per watch – a figure that can far exceed single-article limits offered by standard market policies.
Standard market policies can be restrictive in other ways, too. For example, while losses that occur at home will generally be covered, losses that occur away from home may not be. This is a problem for owners who want to wear their watch in public. 

DUAL helps to overcome these challenges. 

We offer high single-article limits of up to €25,000, helping to protect watches up to their full value. 
Our Private Client policy provides cover on an all-risk basis, protecting clients for a wide range of scenarios – both at home and away. 
If you’ve encountered any watch enthusiasts, please do let them know DUAL Ireland has them covered. 

DUAL Underwriting Ireland DAC is regulated by the Central Bank of Ireland. Its firm reference number is C187789. DUAL Underwriting Ireland DAC is registered in Ireland No. 633531 with its registered offices at: 98 St Stephen’s Green, Dublin, Dublin 2, D02 F3F2.