Trying to understand this pricing climb

[grimtale]

I've been watching the asking price of the Rolex Daytona 116506 Platinum model watches. They have been steadily climbing from around $55K on the used market three years ago to now many ads are up in the $100K range and much more. However, I can't see what is driving this as I'm not seeing many that have actually been sold.

I know eBay isn't the best Rolex source but we will use it as an example as both asking price and sold items are easy to see. There are 10 or more of these watches for sale on eBay at any point that keep going up in asking price month after month but yet there seem to have been zero that have shown up in "sold auctions" in the past two years as I've been watching.

How can this be? One would think that high demand and low quantities would drive the price up but that doesn't seem to be the case here. Seems to be ample supply and slow demand but yet the prices keep climbing higher and higher.

I would be interested in your thoughts behind this phenomenon.

[Cambo]

Very little actual rationale except scarcity....platinum pieces can be going for nearly 30K more than their solid gold counterparts....the actual price of platinum vis a vis gold doesn’t warrant such a price difference. It is crazy out there...

[beshannon]

This is discussed multiple times each day here

There is more demand than supply, Econ 101.

[JSolution]

They sell believe me and they sell fast they move within a day in the trade. There’s a lot of Phantom listings on the internet and trades of these value typically won’t be made over an internet platform that is just where the buyer and seller make contact with each other.

[CLTRolex]

eBay should not be used as a price guide for current high end watch values. I use Chrono24, not sure what everyone else uses.

[vh2k]

Originally Posted by beshannon

This is discussed multiple times each day here

There is more demand than supply, Econ 101.

This! Secondary resellers will continue to increase prices as long as people are buying. If/when people stop buying, prices will stabilize.

[macrowatch]

I have a handful of friends who took a punt on bitcoin just for speculation/diversification. Small relative to their net worth. Some bought 1 while around 10k, some bought 10 while at 20k. All those cashed out and bought new toys and easily covers the price increase of a Platona.

Other less speculative friends who simply bought more Apple stock last year (much less Tesla) have also been upgrading houses/toys etc as networth has increased significantly. the premium costs much less than their time.

[77T]

I have noticed what the OP asked about, too. It isn’t purely a demand/supply measure IMHO.

It does seem none actually sell at the outlier ridiculous asked prices.

In other words, I agree that Platona is an anomaly in the PM Rolex category with little logic. Almost like bid-ask spreads on Reddit-fueled stocks.

[77T]

Dupe

[Chester01]

Fake scarcity, insta hype, and inflation.

[EEpro]

Sweet! Another price thread. Subscribed!

[padi56]

Originally Posted by EEpro

Sweet! Another price thread. Subscribed!

Well thats what the forum is about lately now nothing more than ££££££$$$$$.

[Podmornica]

Originally Posted by Chester01

Fake scarcity, insta hype, and inflation.

This sums it up. This thread can now be closed.

[garyk]

Originally Posted by Chester01

Fake scarcity, insta hype, and inflation.

Or supply and demand

[Benzsiam]

Not only the price of this Platinum Daytona in the secondary market has gone up, all of the sport models of Rolex, AP and PP are skyrocketing now. It seems like the price of luxury items tie to the stock market. If the stock market has some adjustment, the price of luxury items will do too.

[beshannon]

Originally Posted by padi56

Well thats what the forum is about lately now nothing more than ££££££$$$$$.

I agree, which is sad

[brandrea]

Originally Posted by padi56

Well thats what the forum is about lately now nothing more than ££££££$$$$$.

Sad but true Peter.

[vh2k]

Originally Posted by brandrea

Sad but true Peter.

Ro-lex, I'm your life
I'm the one watch you crave now
A-Ds, I'm your life
but don’t really care

I'm your dream, I’m your grail
You desire but you’re no whale
Perceived scarcity, you will fail
Sad but true

[Mick Z]

Originally Posted by Cambo

....platinum pieces can be going for nearly 30K more than their solid gold counterparts....the actual price of platinum vis a vis gold doesn’t warrant such a price difference. It is crazy out there...

Crazy indeed: Platinum is trading at around $1,230 per ounce and gold is at $1,740.

[JSolution]

Originally Posted by Mick Z

Crazy indeed: Platinum is trading at around $1,230 per ounce and gold is at $1,740.

Really is irrelevant when it comes to jewellery/watches

[cbalster]

no one is supposed to buy the platinum daytona. it is supposed to stay in the case at the AD for you to view and crack under the pressure of a sales person into buying a yellow gold day date and lady datejust with 0% 30 month financing.

[Chester01]

Originally Posted by garyk

Or supply and demand

Sorry, don’t buy it. Manipulated and pinched supply I can agree with.


Sent from my iPhone using Tapatalk

[RyanJ]

Originally Posted by garyk

Or supply and demand

All watches are available for next day delivery from the secondary market.

Many people want these at MSRP just so they can flip for profit.

[garyk]

Originally Posted by Chester01

Sorry, don’t buy it. Manipulated and pinched supply I can agree with.


Sent from my iPhone using Tapatalk

Yeah, I know, so much monkey business going on. When I say supply and demand, I’m addressing my frustration at not being able to get any of the watches I want from my AD. Not a flipper, I have a history plus I actually worked for this AD as a subcontractor in marketing but these days, zero incoming for me

[garyk]

Originally Posted by RyanJ

All watches are available for next day delivery from the secondary market.

Many people want these at MSRP just so they can flip for profit.

I am aware of that and frankly they ruin it for the rest of us....

[kieselguhr]

Originally Posted by beshannon

This is discussed multiple times each day here

There is more demand than supply, Econ 101.

Plain and simple

[BLNR Nairobi]

Originally Posted by Mick Z

Crazy indeed: Platinum is trading at around $1,230 per ounce and gold is at $1,740.

If you think that’s crazy, steel is trading (converted to ounces) at ~$0.55/ounce!!!!

Even if you consider that the 904L steel Rolex uses will cost more than that, it still goes to show that the debates we often have on price comparison between gold vs platinum in watches is totally moot once we consider the price of steel versus the cost of a watch.

Like debating the number of angels that can dance on the head of a pin.

Metal prices are largely irrelevant when it comes to jewerly. The markups are insane, but nowhere as insane as the markup of steel if one uses the same discussion points that go into the gold vs platinum debate.

[garyk]

Originally Posted by BLNR Nairobi

If you think that’s crazy, steel is trading (converted to ounces) at ~$0.55/ounce!!!!

Even if you consider that the 904L steel Rolex uses will cost more than that, it still goes to show that the debates we often have on price comparison between gold vs platinum in watches is totally moot once we consider the price of steel versus the cost of a watch.

Like debating the number of angels that can dance on the head of a pin.

Metal prices are largely irrelevant when it comes to jewerly. The markups are insane, but nowhere as insane as the markup of steel if one uses the same discussion points that go into the gold vs platinum debate.

Those numbers are amazing. I guess since Platinum is so difficult to work with, probably makes up for a few hundred dollars of the price difference of Gold...Lol...

[2000-NJDEVILS]

You can still get a new DD 40 in Platinum with the same ice blue dial for 10-20% off list....

[GT3 Mike]

Just laugh and shake your head like most of us do. Once the home equity lines and credit stop flowing, its going to be game over and over saturation of the market... And Rolex will continue pumping out a million + watches as this goes on.