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kmleffler · 3 August 2011, 11:26 PM

According to an article in todays NYTimes it appears that the Swiss are going to devalue the Swiss Franc which should slow increases in the prices of Swiss watches in the U.S. and Europe. What do you think?

dddrees · 3 August 2011, 11:28 PM

When I see it I'll believe it. Besides the prices will only go up and not down, that's just the way it works.

Keeperoftime · 3 August 2011, 11:31 PM

I think in light of the U.S dollars depreciation, the cost decrease will be nominal.

Also the flucuation of Gold & Platinum etc. Will continue to effect pricing.

Ski Dweller · 3 August 2011, 11:33 PM

The last time they tried this, it backfired. Most of the Franc appreciation is due to mom and pop currency traders, so they are punishing them and hoping they panic out. When they do, it buys the Franc a few months or less. It continues to rise after that. Zero interest rates could ATTRACT more hot money from the larger end. Rolex would gladly take the profit w/o lowering prices. The never do that. There has been a concentration of wealth since the market crash, and Rolex will keep increasing prices to cater to the upwardly mobile. The rich are getting much, much richer, and they are driving up the price of the "exclusive" goods. Porsche and other higher end sports car manufacturers have had record years so far.

johnbeth · 3 August 2011, 11:35 PM

Quote:

Originally Posted by dddrees

When I see it I'll believe it. Besides the prices will only go up and not down, that's just the way it works.

Agree! Unfortunately if they devalue their currency means that their manufacturers (exporters) make less profit for the same product sold. In order to make more profit they would cut spending (jobs) and therefore hurt economy. On the other hand it will make their exports cheaper for us to buy. Its a fine line.

snowbird · 4 August 2011, 01:35 AM

Well if they succeed in devaluing it enough - and it's hard for any government to influence currency values that much, short of imposing fixed exchange rates - in theory it could slow down or even reverse price increases.

For example, I understand Rolex has reduced prices in Australia from what they were several years back, due to the large increase in value of the Australian dollar?

3 August 2011, 11:26 PM	#1
kmleffler "TRF" Member Join Date: Nov 2009 Real Name: Ken Location: New York, NY Watch: GS SD GMT Posts: 389	Devaluation of the Swiss Franc According to an article in todays NYTimes it appears that the Swiss are going to devalue the Swiss Franc which should slow increases in the prices of Swiss watches in the U.S. and Europe. What do you think?

3 August 2011, 11:28 PM	#2
dddrees "TRF" Member Join Date: May 2010 Real Name: Dan Location: USA Watch: This N That Posts: 34,258	When I see it I'll believe it. Besides the prices will only go up and not down, that's just the way it works. __________________ When it captures your imagination, that's when you know you have found your passion. Loyal Foot Soldier of The Nylon Nation. Card Carrying Member of the Global Association of Retro-Grouch-Curmudgeons

3 August 2011, 11:31 PM	#3
Keeperoftime "TRF" Member Join Date: Apr 2009 Real Name: Jeremy Location: Louisiana Watch: Rolex Posts: 2,732	I think in light of the U.S dollars depreciation, the cost decrease will be nominal. Also the flucuation of Gold & Platinum etc. Will continue to effect pricing.

3 August 2011, 11:33 PM	#4
Ski Dweller Banned Join Date: Jan 2010 Location: Aspen, CO Watch: Swatch KikiPicasso Posts: 266	The last time they tried this, it backfired. Most of the Franc appreciation is due to mom and pop currency traders, so they are punishing them and hoping they panic out. When they do, it buys the Franc a few months or less. It continues to rise after that. Zero interest rates could ATTRACT more hot money from the larger end. Rolex would gladly take the profit w/o lowering prices. The never do that. There has been a concentration of wealth since the market crash, and Rolex will keep increasing prices to cater to the upwardly mobile. The rich are getting much, much richer, and they are driving up the price of the "exclusive" goods. Porsche and other higher end sports car manufacturers have had record years so far.

4 August 2011, 01:35 AM	#6
snowbird "TRF" Member Join Date: Sep 2009 Location: USA Watch: Sea-Dweller 16600 Posts: 2,157	Well if they succeed in devaluing it enough - and it's hard for any government to influence currency values that much, short of imposing fixed exchange rates - in theory it could slow down or even reverse price increases. For example, I understand Rolex has reduced prices in Australia from what they were several years back, due to the large increase in value of the Australian dollar?

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