Experts say high—end watches proving to be stable investments

[wolfeyes1974]

i was talking to the VPs of 2 premium watch brands recently (i'll not name their brands but they're tier1 watch that everyone would like to own) and they're bracing themselves for lower customer spending in 2009. They've already seen a drop in their sales last month.

Something unheard of....for the first time PP is calling their customers offering discount for their annual perpetual calendar watches..never heard of yes? anyway, the watch costs a bomb...

brace yrself for 2009, guys....stepped harder on the brakes....

cheers

james

[triton]

your brakes repaired already ah?

stepped harder on the brakes....
cheers
james

[paijo]

dun believe.
but that is what i tell my wife when i buy new watch.
hopefully she will believe something that, in fact deep inside my heart, i dont believe

[Oceanklassik]

i was talking to the VPs of 2 premium watch brands recently (i'll not name their brands but they're tier1 watch that everyone would like to own) and they're bracing themselves for lower customer spending in 2009. They've already seen a drop in their sales last month.

Something unheard of....for the first time PP is calling their customers offering discount for their annual perpetual calendar watches..never heard of yes? anyway, the watch costs a bomb...

brace yrself for 2009, guys....stepped harder on the brakes....

cheers

james

hahaha... so is ur offer to me on te 'loan' scheme still on bro? hahaha...

[wind128]

My two cents worth:

Food for thought: Are Fine Timepieces Stable Investments? Judge for yourself.
From Aug 14 to Oct 27, STI dropped from 2816 to 1600: -43.18%
If an SD/Sub LV was bought at $8,751 on Aug 14, and sold $7,500 Oct 27: -14.29%

The loss is almost 3 times more for STI compared to an SD/Sub LV.

So, like one of the bros mentioned, he is thankful he bought a watch with the same amount that he would have placed in the stock market ... even if he needs cash now and sold at a loss, it would not be as bad as investment in stocks. With hindsight, for the unfortunate folks (high net worth and "vulnerable" groups) who bought Lehman Brothers linked products - had they gotten a few gold rolexes or Daytonas two years ago, they will be in much better shape.

But I would like to reiterate what I mentioned before: buy a timepiece because you like it, and not only because of the "investment" value.

Disclaimer: Market will rise and fall. The period of comparison I have chosen is not indicative of the STI's future performance - which can be up or down. Likewise, the resale price of a SD/Sub LV can go up or down, there is no stopping a person selling his SD/Sub LV for $5,000, which is -43% loss from the MRSP.

[leslie]

My two cents worth:

Food for thought: Are Fine Timepieces Stable Investments? Judge for yourself.
From Aug 14 to Oct 27, STI dropped from 2816 to 1600: -43.18%
If an SD/Sub LV was bought at $8,751 on Aug 14, and sold $7,500 Oct 27: -14.29%

The loss is almost 3 times more for STI compared to an SD/Sub LV.

So, like one of the bros mentioned, he is thankful he bought a watch with the same amount that he would have placed in the stock market ... even if he needs cash now and sold at a loss, it would not be as bad as investment in stocks. With hindsight, for the unfortunate folks (high net worth and "vulnerable" groups) who bought Lehman Brothers linked products - had they gotten a few gold rolexes or Daytonas two years ago, they will be in much better shape.

But I would like to reiterate what I mentioned before: buy a timepiece because you like it, and not only because of the "investment" value.

Disclaimer: Market will rise and fall. The period of comparison I have chosen is not indicative of the STI's future performance - which can be up or down. Likewise, the resale price of a SD/Sub LV can go up or down, there is no stopping a person selling his SD/Sub LV for $5,000, which is -43% loss from the MRSP.

sometimes also depends on whether u hoot the right stocks..a gmt 16710 can selling a higher price now if you were to purchase it back in 2006 at 6k plus abit..hehe

[triton]

i agree. that is why when people ask me about purchasing a watch, one of the considering factor is intend to buy/sell or buy and keep the watch.

But I would like to reiterate what I mentioned before: buy a timepiece because you like it, and not only because of the "investment" value.

[patclay]

Watch Keeping Should be a Hobby

As above, it is a hobby. Saw papers yesterday that someone pawned their Richard Mille to Pawn Shop for cash. Don't know how much these guys will get from Pawn Shop. Only those rich ones can buy expensive and high end watches and propbably be able to sell for a profit years later. For ordinary folks like me, will have to save up and only buy watches I like if I have enough spare cash.

[116520]

For my case, of course I buy a watch to wear but the main factor is that it can be sold or trade-in (for good value) after wearing it for some time....

i agree. that is why when people ask me about purchasing a watch, one of the considering factor is intend to buy/sell or buy and keep the watch.

[Jean]

Look like "Stock Analyst ", both make me laughing !
Asinus asinum fricat

[Uncle Ricky]

Today's Straits Times has an article showing how the peasant-rich (not towkays but reformatted yuppies) is now pawning and selling off their high end watches.

Well, goes to show you that when hard times hit, we know who the real rich are.

Good time to buy chi-chi watches these peasants are hiving off although I don't think the real classics will drop much.

This is the best transfer of wealth from the new rich to the up-and-coming.

[feilong108]

haha...as the saying goes...Cash is king in reccesions...

[Planet]

Strongly agreed !!

haha...as the saying goes...Cash is king in reccesions...

[feilong108]

in investments it is best if you had done sufficent homework on the companies that you are going to put your hard earned money in than to listen to some half baked sod from the banks....after all they are only interested in making their commissions....definately not in your best interests...anyway wad u can expect from a green horned kid juz finished uni????

[daveevan]

Today's Straits Times has an article showing how the peasant-rich (not towkays but reformatted yuppies) is now pawning and selling off their high end watches.

Well, goes to show you that when hard times hit, we know who the real rich are.

Good time to buy chi-chi watches these peasants are hiving off although I don't think the real classics will drop much.

This is the best transfer of wealth from the new rich to the up-and-coming.

read it too, too bad, should have posted their sales here ( rather than selling to pre-own dealers at a lower price ) can create a win-win situation.