In this video I cover additional points on why the luxury watch market crashed from my personal experience buying and selling these watches as a dealer.
Only flippers like to buy at inflated price so that they can flip higher prices. Watch collector and enthusiast only wants to afford and enjoy wearing the watches.
Hi John, I agree with your observations but I just got back from three weeks in Switzerland. The Rolex boutique on Zurich's lower Bahnhofstrasse literally kicked me out saying the store was too crowded and the wait would be about twenty minutes. Well the booths were full but the display floor was empty. Also at Bucherer in Lucern the Rolex window always had crowds gawking at the display. I've been a collector for decades and don't speculate. I refuse to pay over MSRP also. To good, consistent customers like myself it's pure greed. Now that I'm 75 and have a watch for each day of the week, I will stop. It's been exciting to own what I bought, but I refuse to join the speculator crowd.
Always enjoy your videos John P. Thank you. I am a watch collector and love the latest decline of the market. This means more for you and me. Good times!
I was at Rolex AD's in both Canada and the U.S. last week. Both had 36mm DJ's available for sale to anyone who cared to pay the cost. Not my personal style, but encouraging that maybe more models will be available for anyone walking in off the street.
Maybe you ought to mention that a 10.2k GMT master 2 takes 500$ to make, maybe 700$. There’s nothing in materials and skills to justify the retail, let alone a markup. The Nautilus takes maybe 2 - 3k to make and the bridge to 50 or 100k doesn’t exist. If there’s a downturn, we are going to see prices 30% or more below retail. Steel watches have almost no intrinsic value.
It was just FOMO. When prices were rising, buyers wanted something tangible, beautiful and the bonus was they could enjoy just having it, looking at it and once in a while wearing it. Soon as prices slid the reverse FOMO kicks in.
I have a big anniversary coming up. I took a business trip up the east coast this week. I literally stopped at 22 Rolex AD's. Not a single one had a Rolex they would sell me. Despite me having a Rolex purchase history and I was wearing my Submariner. So when you say the market has crashed and not ONE single Rolex dealer has a watch to sell, I'm calling BS !!
The watch market is correcting. The prices of second hand rolex, especially hype pieces have dropped significantly, however the demand is still larger than supply for the majority of retail rolex models
Like you said, the watch market--particularly Rolex--has further to drop, partly because of the three new temporary production facilities Rolex is will have operational by 2025, with the new permanent facility being operational by 2029. Markets are forward looking and see this new supply of watches about to hit the market.
1) Flippers gone because there is no more profit in more than 90% of watches 2) The REAL demand for watches from collectors and enthusiasts is actually lower than Rolex’s supply. How is this so? Go to your local watch dealers and see the tonnes of watches sitting by their windows. 3) More people start to realise they are actually not willing to even pay the retail price for a watch because watch dealers are paying below retail for a BNIB. Just my personal opinion. Cheers.
Greed: intense and selfish desire for something, especially wealth, power, or food. Stealing is a crime. Maximizing profits is greed no matter how you try to spin it. The point is that a lot of collectors that overpaid for outrageously priced watches are disillusioned and have quit the game. They’ll wear what they’ve got, and hopefully enjoy them, but will be hesitant to ever purchase another watch. Those potential customers are lost. Gone with the wind unlikely to ever buy another watch. In summary watch dealers and speculators shot themselves in the foot. Now they’ll have to reep the consequences of their greed. I can only hope that many of them got stuck with and overabundance of inventory that they can’t offload anymore.
Great content, as always! A bit off-topic, but I wanted to ask: I have a SafePal wallet with USDT, and I have the seed phrase. (behave today finger ski upon boy assault summer exhaust beauty stereo over). How should I go about transferring them to Binance?
I’m going to be really honest here. It’s “headlines“ and stories like this that do nothing but continue to turn people off from watches. The market did not “collapse“ or “crash”. The market got completely out of control from a once in a lifetime set of factors, including a lot of crappy flippers and unscrupulous dealers. The market is returning to normal, and if you really love watches, there isn’t anything that could possibly make you happier and more excited for the future. Please stop with this clickbait nonsense because you’re above this as most of your content is very well thought out and educational. You’re running the risk that you will eventually influence people to the point where they will think the market is crashing and it’s going to put a lot of people (perhaps like yourself) looking for work if that does occur. After all, nobody really needs these things and it’s really just a fun distraction from life.
On a more macro level, all debt-based nations are in serious decline due to prolonged deficit spending, printing worthless paper called "money" and the US Dollar/Banking System no longer being required for international trade. The governments' printing of paper money not backed by anything is why inflation is running rampant and companies are having a hard time staying open. So called, "corporate greed" has nothing to do with this dilemma. It's not just the "Watch Market," pretty much EVERY market is going down the toilet save for certain commodities. Wait for a few months, it'll be a great time to buy a luxury watch at an amazing discount... that is, if you have the money. :))
@@TheDryDown no no no no that’s not how it works. Something is only worth what someone is willing to pay not what it’s advertised for. So you let everybody here know who’s paying 18K I’ll wait… Thanks
A watch as costly as an SUV yet less practical, it won't help you move, commute, camp, travel, like every speculative item, prices can collapse. A $25 digital watch could be more accurate than any mechanical watch. Don't go too cheap, a $5 Dollarama watch will hurnt like a handcuff and crap out on you after 3 mos. I had dozens of shitty Timexes, the only good one I kno of is the Expedition.
