Hodinkee article: U.S. Steel Watch Shortage Good For Gold

[Nikrnic]

I realize the value of a TT or PM piece but it's just not for me. Personally I'm not in any panic or rush situation to pay the going grey price for any SS model as well. I have a nice modest Rolex collection of 5 (new in my name) incl. an oyster Blnr. Liking the new Blro but knowing it could be a long wait at MSRP and not willing to go grey l just decided to go in- between for number 6 and spent my money on a minty 16710 instead. The only relevance the SS shortage had on me or l should say for me is to take me out of the market for another 'New' Rolex. I can live with that. (Mission Accomplished)

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[JeromeAD]

Originally Posted by quakeroatmeal

I can't be the only one that finds it hard to believe someone going to an AD looking to spend 8k on a sub is walking out with a 25k-35k PM rolex just because they couldn't get the stainless steel model...

I see it happen about once every other month. It’s normally on someone’s fourth or fifth visit. Crazy market.

[Fleetlord]

This article reinforces some observations that I have made over the last year.

1. Rolex and Patek are nearing total dominance of the luxury watch market. AP and RM are putting up a fight with some on trend and exclusive references (Code 11:59 disaster not included) and Omega is showing up here and there with desirable Speedy Pro’s. The rest of the market is just lost...adrift in overproduced references that are overpriced, poorly designed and ineptly promoted. It’s a rout.

2. Rolex has been undervaluing themselves for years. With the limited availability of less expensive SS references, consumers are now showing what really are capable of in terms of spend. A larger % of the general public than previously thought were prepared to spend $$$ when they marched into the Rolex AD, but when they were greeted with $8500 Submariners clogging up the display cases they chose small. Now that the SS references are limited, these individuals are finally spending up to their expectations. Rolex has a higher factory margin on TT and PM references, so this is working out very nicely.

As others have said the higher grey market prices in SS also trigger the PM value prop...I can get a gold one for $$$ vs $$ for a steel one? I will take the PM Rolex please.

The key takeaway from all this is that the watch manufacturers that effectively manage their brand by offering the right product, at the correct price while limiting their distribution and promoting the attributes of ownership are rewarded with record sales. The brands that fail at this are essentially ignored to the point of irrelevance. The market is very clear about this and shows no reservation about punishing a brand for their mistakes.

[watchtung]

Originally Posted by othertbone

No I think for example, its people seeing they have to pay 24k on the grey market for a ceramic Daytona that are buying the two tones and PM models from the AD's.

Yeah I've actually considered the WG Daytona because at least the price makes sense to me versus the gray SS.

[Shdrolex]

Excellent discussions and opinions happening on this topic. Very interesting.