TT - Why are they unwanted on the secondary market?

[Scott95]

Originally Posted by chicfarmer1

I don't think that's the claim. It's about the degree or percentage of depreciation that each has in the secondary market. The precious metals depreciate relatively more.

I can see that might be the point and in my view it breaks down like this...

The TT price point is substantially higher than the SS entry level price point. It's actually much higher than the gold content alone would justify. Why? Because they can get it that's why! (Proof there is demand when new)

That said, why does a TT lose more of it's original value to depreciation than SS? I think it's PARTLY because people willing to spend that much extra money on a watch have a lot of disposable income and prefer to buy new. I don't think there are as many people in the market for a used watch at the higher prices (because they tend to have the discretionary income to go whole hog for new) which means lower demand which pushes the price down more.

Same reason a luxury car tends to depreciate more (as a % of initial price) than an economy car. At the high price points, people want new. People who shop used are generally looking for a bargain! (IMO)