Weaker Chinese Yuan means luxury good correction

[RX0]

Today, I heard in the news that weaker Chinese Yuan means it put more pressure for Chinese buyer to spend on luxury good. I'm not an economist so I have no idea if that really is the case. If it is true, does it mean that the current shortage of supply will be eased. I'm like many other who still on the list to wait for the call from my AD for my Pepsi since it launched in baselworld 2018.

[Chaching]

The Wealthy always have money. Doubt any impact.

[Wes911]

Originally Posted by Chaching

The Wealthy always have money. Doubt any impact.

Totally agree. Dont think the average Rolex buyer in China is going to worry about this too much.

[Dougiebaby]

Also, it could do the opposite as the potential Chinese buyer sees a way to hedge/stabilize his/her money in an asset (Rolex) that is not devaluating vs. threat of even more future currency decline.


I am in the home building industry and there as so many Chinese people purchasing real estate in the US and other to get money “out” of China and protect their futures.


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[LndLord]

These are luxury items


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[teck21]

Originally Posted by Wes911

Totally agree. Dont think the average Rolex buyer in China is going to worry about this too much.

What is the average Rolex buyer in China like?

Of course events like these have an impact on the buying habits of even the wealthy.

When people feel less rich, the first thing to go is the luxuries.

Hardly rocket science. The impact is huge when that happens on a large scale.


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[Art 1]

Originally Posted by teck21

What is the average Rolex buyer in China like?

Of course events like these have an impact on the buying habits of even the wealthy.

When people feel less rich, the first thing to go is the luxuries.

Hardly rocket science. The impact is huge when that happens on a large scale.


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Rich

[pickettt]

Originally Posted by teck21

What is the average Rolex buyer in China like?

Of course events like these have an impact on the buying habits of even the wealthy.

When people feel less rich, the first thing to go is the luxuries.

Hardly rocket science. The impact is huge when that happens on a large scale.


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Then they are not wealthy, just rich.

[GB-man]

No idea but if it means more inventory directed over to the US then that’s great. US and China always seem to be competing for inventory. Last time China slowed down with the crackdown on political bribes or whatever Pateks where being allocated left and right over here.

I doubt we will see any change unless the market sells off hard.

[enjoythemusic]

Well, all currencies are right now in a competitive-style devaluation. For example, the United States Federal Reserve Debt Note (aka USD) has lost over 95% of it's value / buying power since it was first introduced. So if the 2007-ish crash is a guide, it is best to acquire items of intrinsic value as banks struggle to stay liquid. This is why Federal Reserve banks gladly laundered drug money and other questionable income so banking members could stay afloat.

Eventually / soon the USD will lose its reserve status, then the game will truly heat up for those based on that currency.

Bottom Line: Currencies are a guaranteed losing proposition. Thus investors choose things of intrinsic value.

JMHO, and obviously there is far more to the backbone of the banking system, and their motives of continuous competitive currency devaluation they disguise 'in the open' and call it 'inflation'.

[gmh1013]

The real rich just see it as another way to make money itlr.....compared to the poor sucker who panics becuase he cant afford to lose 100 bucks or pic your currency.

[teck21]

Originally Posted by pickettt

Then they are not wealthy, just rich.

I know you thought that sounded really cool, then by wealthy I take it you mean ‘super rich’.

The thing is a very very large proportion of Rolex buyers do not fall into that category because quite simply, based on a production of approximately 1m watches or less per year, the Super rich have had their fill of Rolex a long time ago, and many times over each year.

Believe me, there are only so many ‘super rich’ in the entire world who could afford anything they want even if they took a 50% haircut to their personal wealth or net worth.

Most of Rolex’s demand is not derived from this particular segment even if JohnMayer or whichever celeb or inheritor of billion dollar fortunes appears to show it on IG or something.

Simply put, how many of you would buy a Rolex if economic conditions changed such that you were 30% poorer?

My wager is that plenty of us would forgo the Rolex.






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[masterserg]

Originally Posted by pickettt

Then they are not wealthy, just rich.

The wealthy buy RM and others ...

[pickettt]

Originally Posted by masterserg

The wealthy buy RM and others ...

The wealthy buy whatever they want