Swiss Franc / GBP£ now under 1.28 = price rise coming

[Haywood_Milton]

Hello Gents,

There is some nonsense talked here by people who have not been around long enough, saying that Rolex have an "annual price rise" etc.

Rolex price rises in the UK ( and probably all Rolex territories ) are affected most by the relative strength of the swiss franc and wholesale commodity prices.

The last Rolex UK price rise was released at the start of June 2011 and was therefore decided at some point during May 2011 at the latest.

In May the Swiss Franc / GBP was 1.43-1.44 and now it has dropped over 10% to below 1.28. The gold price has further increased, but more marginally.

Expect a further price rise in the next 6 months, but don't be kidded that it is any kind of regular event. When the world eventually stabilises you will see, as in previous eras, periods of five years or so without ANY price rises ( but never a price drop, except where local taxes change ! ).

Yours as bluntly as ever,

Haywood Milton, UK

[Tijssan]

5 years without any prices increases sound highly unlikely to me tbh. Get your point on Swiss franc, but don't forget about inflation...

[greekbum]

HM You are so right.

[Haywood_Milton]

It happened in the 1990s, period.

Commodity prices at some point drop back, currencies move the other way from the way that they have......so the GBP prices should really DROP ( *despite* general inflation, which I am well aware of )..... BUT price drops are unacceptable to a luxury brand. As a result, and as they have done before, you will see prices at some point effectively frozen until inflation catches up some years later, or another financial imbalance occurs.

For now, as I say, they will continue to rise in the UK.

When the Pound strengthens agains the SFR and / or the commodity prices drop, THEN you will simply see prices freeze for a while.

Haywood Milton, UK

[Puffy]

Looking at my intra day charts CHF is oversold and will a) rise this week and b) await furhter analysis of US deficit outcome before it will make up its mind in the short/mid term.

In the long term it will continue to drop - trendline 101 below

WILL THE LAST PERSON TO LEAVE SWITZERLAND PLEASE TURN OFF THE LIGHTS

[Tijssan]

Originally Posted by Haywood_Milton

It happened in the 1990s, period.

Commodity prices at some point drop back, currencies move the other way from the way that they have......so the GBP prices should really DROP ( *despite* general inflation, which I am well aware of )..... BUT price drops are unacceptable to a luxury brand. As a result, and as they have done before, you will see prices at some point effectively frozen until inflation catches up some years later, or another financial imbalance occurs.

For now, as I say, they will continue to rise in the UK.

When the Pound strengthens agains the SFR and / or the commodity prices drop, THEN you will simply see prices freeze for a while.

Haywood Milton, UK

With the rise of Asia, South America and other 'emerging markets' I doubt we'll see a structural drop (or at least over a 18 - 24 month period) in commodity prices anytime soon. On top of that the demand for Rolex and other high brands will only increase due to growing middle classes in these markets. Just look at the premiums already paid outside of Europe and the US...

[Haywood_Milton]

I take it, then, that you do not disagree with my statements but are taking it further and trying to second guess WHEN the phenomena I describe will occur, yes ?

Haywood Milton, UK

[Willgotthepower]

I posted a couple of weeks ago telling everyone the conversation I had with an AD in Greece who if any one wants to check said that due to the Swiss franc against other currencies there was to be a rise in august around the 15th. I know most ADs only get told a few days before about rises and yes it could have been him trying to secure a sale although I was only browsing, but....for some reason it makes sense...only time will tell....