Rolex hotter than ever?

[sco]

Originally Posted by peterpl

Its called a bubble. LOL

People lining up and sleeping outside? HAHAHA thats just like the Apple launches back in the day. Now not a single person lines up on any of their releases or store openings.

People do still lineup, but those are the diehards. Now that you can have all of the new stuff shipped to your house on launch day there’s no reason to lineup.

Yes, I’m aware that iPhone sales have slowed down as well.

[jsausley]

Originally Posted by CEITS

Because the materials are more expensive for pm.

So Rolex's manufacturing cost is higher, so they should charge more to hit the same profit margins, but that doesn't mean that the secondary market value should go up. Market value is based off of the current supply and demand. We could easily see stainless watches exceeding the price of PM on the secondary market very soon if the hype around these watches continues building.

Originally Posted by Richris1

Significantly less desirable than steel ...because a large portion of the market doesn’t want a heavier softer metal??
I’d seriously debate that. If you put a “large portion “ of the market in front of a same model SS and PM Rolex, (2 Submariners, 2 GMTS, For example) and said....pick one and it’s yours... I’d be willing to bet the “majority” won’t pick the SS

It would be an interesting experiment for sure. I'd add the caveat of "pick one and it's yours, but you have to keep it and wear it." I too would pick a PM watch because I could flip it, buy the stainless and have more leftover, but I'd rather have the stainless if I had to keep it forever.

My point isn't that Rolex shouldn't charge more for PM (obviously they should, because they have to pay for the gold material that goes into the watch), but that just because stainless watches are going up in value doesn't mean PM watches have to go up as well. It's a completely different market segment and PM and stainless watches appeal to different people.

[Arai.D]

Originally Posted by jsausley

So Rolex's manufacturing cost is higher, so they should charge more to hit the same profit margins, but that doesn't mean that the secondary market value should go up. Market value is based off of the current supply and demand. We could easily see stainless watches exceeding the price of PM on the secondary market very soon if the hype around these watches continues building.



It would be an interesting experiment for sure. I'd add the caveat of "pick one and it's yours, but you have to keep it and wear it." I too would pick a PM watch because I could flip it, buy the stainless and have more leftover, but I'd rather have the stainless if I had to keep it forever.

My point isn't that Rolex shouldn't charge more for PM (obviously they should, because they have to pay for the gold material that goes into the watch), but that just because stainless watches are going up in value doesn't mean PM watches have to go up as well. It's a completely different market segment and PM and stainless watches appeal to different people.

It’s still debatable, in my local reseller, they hv TT GMT a lot, which are priced the same with SS batman or even less but the fact SS batman had sold more than TT GMT are they the buyers chose SS batman because of the “batman” or the metal?

[Roleplay]

Originally Posted by jsausley

So Rolex's manufacturing cost is higher, so they should charge more to hit the same profit margins, but that doesn't mean that the secondary market value should go up. Market value is based off of the current supply and demand. We could easily see stainless watches exceeding the price of PM on the secondary market very soon if the hype around these watches continues building.



It would be an interesting experiment for sure. I'd add the caveat of "pick one and it's yours, but you have to keep it and wear it." I too would pick a PM watch because I could flip it, buy the stainless and have more leftover, but I'd rather have the stainless if I had to keep it forever.

My point isn't that Rolex shouldn't charge more for PM (obviously they should, because they have to pay for the gold material that goes into the watch), but that just because stainless watches are going up in value doesn't mean PM watches have to go up as well. It's a completely different market segment and PM and stainless watches appeal to different people.

I'm not sure I understand your position. In any case, if I had to pick a PM vs SS and own/wear it forever, all the more I'd pick PM, and I think the majority would as well, especially if you are thinking along the lines of forever.

Is the value that you personally place on Rolex SS sports watches not merely just your preference for the material but also because of the perceived value and current market demand and that SS sports models will always be in demand? It seems as though you do to some extent. If you picked a SS sports model for forever, you do know that the value of the watch is a moot point if you keep it forever.

[rolexinfl]

Haha at the people calling this a bubble.

It isnt a bubble, it is the new normal.

[aleexxxxx]

People will line up and sleep outside for days if they know they can flip that item for quick money. Been happening for decades with sneakers , Nike SB, Jordan’s etc. If these watches weren’t selling for over msrp 2nd hand not a soul would line up for a grand opening

[A2G]

Originally Posted by rolexinfl

Haha at the people calling this a bubble.

It isnt a bubble, it is the new normal.

I agree. I believe this is the new business model Rolex is going with. Limiting supply creates hype and their other not-so-hot models will also pick up sales.

[rolexinfl]

Originally Posted by A2G

I agree. I believe this is the new business model Rolex is going with. Limiting supply creates hype and their other not-so-hot models will also pick up sales.

People said the same thing with rare whiskies and bourbon.

THIS IS A BUBBLE!!! TULIPS!!!!

Nope, they were WRONG.

Luxury goods with strong histories that gain millions of followes in short timeframes arent just giffen goods that create bubbles - they literally transform the landscape of that good and create new normals of pricing and demand.

It will NEVER subside back to 'how it was'.

[GADNYC]

Originally Posted by peterpl

Its called a bubble. LOL

People lining up and sleeping outside? HAHAHA thats just like the Apple launches back in the day. Now not a single person lines up on any of their releases or store openings.

Practically you can buy any Apple product online so no reason to shop retail, with Rolex...not so much

[Mystro]

Most Rolex buyers can’t afford $35K for a PM watch. That fact has always been why PM moves slower to the general public for 50 years. Value for money and fashion is why SS got hot. Once SS gets close to a PM Rolex, nobody will ever buy a SS Rolex over a white gold model if the two price ponts get too close together. Gold is a commodity since the beginning of time. SS is what they make toasters and dishwashers out of.

[ppalasthira]

I’m from Bangkok and there are plenty of TT sports models in the ADs.


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[sevykor]

Originally Posted by rolexinfl

Haha at the people calling this a bubble.



It isnt a bubble, it is the new normal.

I wish I could share your optimism, but history would disagree.


Sent from my iPhone using Tapatalk

[sevykor]

Originally Posted by jsausley

Why should a PM model be higher priced? They are significantly less desirable than steel because a large portion of the market doesn't want to wear a softer, easier-to-scratch, heavier metal. If your argument is that they have more fundamental value due to the bullion price of gold, sure, but isn't that only relevant if you plan on melting down your Rolex and selling it as scrap?



Personally, if PM and steel were the exact same price I'd still buy the steel, and I'm pretty sure the majority of people under age 50 would do the same.

It’s not just the PM that are higher (people who spend $ on PM watches usually don’t care how much they cost). The sport models are also much more. Compare DJ41 126300 price to a SD43 price. The movement is same, but is the extra steel and rotating bezel worth the thousands of $ difference?


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[Kyle3130]

Originally Posted by CEITS

Read the entire post pal. I said Rolex has put a stranglehold on current inventory.

Negative! They are producing as many as they ever have but demand has skyrocketed so much that inventory looks like they have cut production because as soon as they come in they are sold.

[donq]

Not sure how everyone knows how many watches Rolex makes in a year.

They seem to be a bit secretive..

[InitialAndPitch]

Originally Posted by jsausley

Why should a PM model be higher priced? They are significantly less desirable than steel because a large portion of the market doesn't want to wear a softer, easier-to-scratch, heavier metal.
.

I'm a comparatively new contributor here. I was hoping to get away without having to explicitly ask why Precious Metal (PM) models are nudging remarkably close to the Stainless model. Good rationale.

As some posters have suggested, I'd rather wear a SS.. Yellow Gold just 'aint my thing. This will sound crass - it's not intended to be. Is the watch below in budget? Yes. Is is desirable for this single consumer. Not so much. Just a matter of taste. However, If you've lusted after a PM model and secured one, I congratulate you. If you get as much pleasure from yours as I do mine, we're both pretty lucky.

There's always an exception. This PM Cosmograph is a beauty and comes with the price tag to match. BUT not that huge a price differential. We live in a crazy 'gif fen' market.

[InitialAndPitch]

Originally Posted by donq

Not sure how everyone knows how many watches Rolex makes in a year.

They seem to be a bit secretive..

Private Foundation and all that, the best estimates (I'd stress estimates/guesses/crystal ball readings) places production at around 900,000 units.

They have four facilities, underground gold foundries and a s pot for Dr. Evil to park his 'Space Ship".

They're be some talented inferential statisticians who might produce you a number.

[mr_gray]

i don't think rolex changed supply (net for year at least)

PM watches have gone up a bit. but of course can still be had new for less than retail in the case of the sub and the gmt for example.

i absolutely looked at steel watches and the prices relative to pm watches. this led to me buying a pm watch. paying over retail for say a blro when a smurf was available at near 2/3 rrp seemed nuts.

i think 10 out of 10 people if faced with a gold watch or a steel watch would pick the gold (even if they preferred to wear steel). gold has a visceral effect. if not its lustre its heft would convince. if not that then value.

37 millionaires around the globe. an exploding middle class in india and china and elsewhere. social media. 4 years ago rolex was everywhere for discount. now is their time in the sun (and AP's).

i do wonder if there will be residual heat post this current frenzy, but i'd argue we have no reason to think this isn't hype right now (irrational exuberance) and so anyone who thinks this is the new normal is probably just trying to justify something to their significant other. that's what i did ;-).

[CEITS]

Originally Posted by Kyle3130

Negative! They are producing as many as they ever have but demand has skyrocketed so much that inventory looks like they have cut production because as soon as they come in they are sold.

Prove it

[Dirt]

Originally Posted by peterpl

Its called a bubble. LOL

People lining up and sleeping outside? HAHAHA thats just like the Apple launches back in the day. Now not a single person lines up on any of their releases or store openings.

Also like the good old days when you could camp out and be first in line to get front row tickets to concerts. If you were early enough.
None of this modern crap with buying tickets on line with absolutely little to no prospect of getting the best seats because they are supposedly pre-sold to VIPs or something.
Then you go to the concert and there's nobody sitting in those specially reserved seats anyway. WTF

[Jojoshop]

Checked few ADs this last week in European (Heathrow airport, MAier in Lyon and Dublin) no steel professional

[Jason71]

Originally Posted by mr_gray

i don't think rolex changed supply (net for year at least)

PM watches have gone up a bit. but of course can still be had new for less than retail in the case of the sub and the gmt for example.

i absolutely looked at steel watches and the prices relative to pm watches. this led to me buying a pm watch. paying over retail for say a blro when a smurf was available at near 2/3 rrp seemed nuts.

i think 10 out of 10 people if faced with a gold watch or a steel watch would pick the gold (even if they preferred to wear steel). gold has a visceral effect. if not its lustre its heft would convince. if not that then value.

37 millionaires around the globe. an exploding middle class in india and china and elsewhere. social media. 4 years ago rolex was everywhere for discount. now is their time in the sun (and AP's).

i do wonder if there will be residual heat post this current frenzy, but i'd argue we have no reason to think this isn't hype right now (irrational exuberance) and so anyone who thinks this is the new normal is probably just trying to justify something to their significant other. that's what i did ;-).

Don’t you mean 37 million millionaires? I think there are probably a few more than just 37

[Kyle3130]

Originally Posted by CEITS

Prove it

Ask any AD

[TimeToWatch]

Originally Posted by scottchmoon

Hi guys,

I am a big fan of Rolex based in South Korea. I am aware of the fact that steel models of professional lines are EXTREMELY hard to acquire across the globe. But in SK, even TT Subs (116613) are not easy to purchase. Is it the same in your countries as well?

*Fun Fact:
There was a new Rolex AD grand opening a few days ago in a city called Daegu, South Korea. People lined up the day before the opening, sleeping on the streets. More than 200 people waited hours just to see if there is one that they can purchase. Unfortunately, there were only a few items that were desirable by many of us.

Rolex is the new Bitcoin.

[myusernamez]

https://www.arabianbusiness.com/reta...-in-arab-world

Pretty obvious where the watches are and confirmation Volumes are up across the board.

[904VT]

I'm literally still laughing out loud at the number of threads and posts over the last several years that talked about Apple being the "demise" of the Swiss watch industry, and Rolex more specifically. I mean disposable tech. How's that working out?

[Nairn1980]

Originally Posted by scottchmoon

Hi guys,

I am a big fan of Rolex based in South Korea. I am aware of the fact that steel models of professional lines are EXTREMELY hard to acquire across the globe. But in SK, even TT Subs (116613) are not easy to purchase. Is it the same in your countries as well?

*Fun Fact:
There was a new Rolex AD grand opening a few days ago in a city called Daegu, South Korea. People lined up the day before the opening, sleeping on the streets. More than 200 people waited hours just to see if there is one that they can purchase. Unfortunately, there were only a few items that were desirable by many of us.

Idiots in this country (UK) have been known to sleep outside for the launch of the newest Apple product, or the opening of a new doughnut store or similar. Always staggers me

[Ssunnylee24]

Another thing is most Koreans are not familiar with purchasing Rolex, or any brand watches that wasn’t originally purchased in Korea. Some do go over seas to purchase hot Rolex models but most are afraid of not being able to get grey market watches serviced or not get the proper treatment at the department store/AD.

[jimcameron]

It's some crazy shit.