WatchingGolf
216
Great post and food for thought here...
I see it as a two-sided problem. First luxury goods and especially Rolex are not tied in any way shape or form to inflation anymore - they are simply priced for whatever the market can bare period. The second issue is western governments have relied on the money printing machine for the last 25 years which has greatly increased "real inflation" and decreased buying power much more than any government statistic will tell you regardless of country. Unless that changes (doubtful since they are so indebted to this practice now and literally cannot afford to reverse it) this will continue to only get worse.
The long-term price divergence of the rolex submariner date (1995–2040): inflation vs market value growth ( and watches in general)
This chart shows the price evolution of a steel Rolex Submariner Date since 1995. I chose 1995 because that’s when I bought my first 16610. I still remember the price very well, it was €2200 at the time. Of course, that is converted into euros, because in...
can't agree more to every point you've mentioned !
unfortunately today the prices has gone ridiculous. Best, mahesh.,
and BTW ... Its only luxury watches
When I was younger (let's say late 1980's) my dream watch was an Omega Speedmaster. I was more or less 1100 euro back then, today it's close to 8000 euro A Plastic Swatch was 40 euro .... Today a similar Swatch is between 60 and 100 euro Omega: +627% Swat...
Darn UNstable Currency is the problem.
Home cost, car prices, food is expensive..... It's just basic mathematics. If a currency loses (realistically nowadays) 6% of it's buying power (Value) annually, after only 10 years how much Value has it lost? Blame prices all you want, tho also account f...
+1
Also, the transmission of newly "printed" money through the economy flows preferentially to the already well-off and wealthy, who obviously are disproportionately high consumers of fine watches, wine, cars, etc.
Will there be 2040???
Are we not following geopolitics? On another note… Collecting anything, watches, cars, stamps, homes, was always a privilege of the rich. Breguet, Michelangelo, and all other artists created for the rich, commissioned by the rich… Where I’m getting here i...
Great topic
So many good points have been made already. The watch industry reminds me of the Las Vegas tourism industry, where the Strip is converging on a strategy of fewer tourists, but much higher transaction prices. I think the key is that most of the customers R...
In economics, for luxury goods,
the higher the price, the greater the utility. Do I remember the theory correctly?
Great post and food for thought here...
I see it as a two-sided problem. First luxury goods and especially Rolex are not tied in any way shape or form to inflation anymore - they are simply priced for whatever the market can bare period. The second issue is western governments have relied on th...