Who was around before the financial crisis?

[cryptowatch]

I am a relatively young guy when it comes to the world of horology (24). Only in the last 18 months have I become obsessed with luxury wristwatches.

From my understanding in the past few years we have gone through a mechanical watch "Golden Age", with prices and production numbers last seen in the early 2000s.

My comprehension is that the watch market went through quite a correction (along with everything else) during the 2008 financial meltdown.

To those who have experienced multiple horologic and economic cycles, how would gauge the current luxury watch market relative to your experiences.


I appreciate any input and look forward to some words of wisdom.

[sea-dweller]

I was around, Rolex prices went "into the tank". In 2007-2008, a 16610LV could be purchased pre-owned in the mid 4K range ($4,500), if my memory serves me correct.
Now, around 7K.

Right now, Rolex prices are at highs! The economy is doing well.

[speedmaster73]

Originally Posted by sea-dweller

I was around, Rolex prices went "into the tank". In 2007-2008, a 16610LV could be purchased pre-owned in the mid 4K range ($4,500), if my memory serves me correct.
Now, around 7K.

Right now, Rolex prices are at highs! The economy is doing well.

not in Canada

[zama]

Originally Posted by sea-dweller

I was around, Rolex prices went "into the tank". In 2007-2008, a 16610LV could be purchased pre-owned in the mid 4K range ($4,500), if my memory serves me correct.
Now, around 7K.

Right now, Rolex prices are at highs! The economy is doing well.

Only in America, congrats on your first interest rate rise in forever, now we just need China to come steel and we can start digging up our natural resources again here in Oz......

[swils8610]

Most luxury items went in the tank. I bought new Sub back in 2003 for $3950 USD. I thought at the time it was a crazy amount of money!

[cryptowatch]

So when times get tough fancy watches get dumped first.

[sea-dweller]

Non-essential items that could be sold for large amounts of cash were sold.
Also, when times get tough, there's less disposable income, so new watches don't get sold as often and used watches will command less $.

Originally Posted by cryptowatch

So when times get tough fancy watches get dumped first.

[East Bay Rider]

Before the financial crisis one had to 'know someone' or be a 'preferred customer' in order to even get put on the waiting list to pay extra for a SS Daytona. It's said that most ADs only received 2 per year. If someone was lucky enough to be able to purchase one, he often didn't have a choice between the white dial and black - white dial often preferred in North America and Europe, black in Asia. They were such a hot commodity that it wasn't uncommon for someone to purchase one then immediately flip it for thousands more $. Of course if the AD found out the customer might be blackballed.
The SS Daytona was truly a symbol of luxury and connections. This became more reasonable during the crisis.

[Gaijin]

Originally Posted by East Bay Rider

Before the financial crisis one had to 'know someone' or be a 'preferred customer' in order to even get put on the waiting list to pay extra for a SS Daytona. It's said that most ADs only received 2 per year. If someone was lucky enough to be able to purchase one, he often didn't have a choice between the white dial and black - white dial often preferred in North America and Europe, black in Asia. They were such a hot commodity that it wasn't uncommon for someone to purchase one then immediately flip it for thousands more $. Of course if the AD found out the customer might be blackballed.
The SS Daytona was truly a symbol of luxury and connections. This became more reasonable during the crisis.

So true. My AD jerked me around for two years selling their "allotted two SS Daytonas" per year out the back door to family and friends all the while telling me I was "next." I found out about this from a disgruntled former employee that worked out at my gym.

I went in called bullshit and had my no choice white for 6900 in two weeks. They made me engrave something, anything on the back to recieve it because flippers were selling them for up to 12,000. Even on here.

There was even a few members who would gouge others here in the SS Daytona game. When that dried up they haven't posted since.

[anothernewphone]

Originally Posted by East Bay Rider

They were such a hot commodity that it wasn't uncommon for someone to purchase one then immediately flip it for thousands more $. Of course if the AD found out the customer might be blackballed.
The SS Daytona was truly a symbol of luxury and connections. This became more reasonable during the crisis.

A buddy of mine did that. At that point, if you're lucky enough to come across a SS Daytona, the only logical choice was to flip it!

[TheBluePrince]

Since the recovery you have to remember that interest rates have been historically low. Having money in the bank earns you relatively nothing. This has caused the values of luxury items such as classic cars, art and watches to sharply rise as people invest in them instead of in financial products or interest earning accounts.

Now interest rates are rising again there will be a downward correction in the value of said luxury items which are currently way over priced as people move their wealth back to more traditional investment vehicles.

Basically, now is the worst time to be buying a used watch.

[beshannon]

Originally Posted by cryptowatch

Who was around before the financial crisis?

Which crisis?

I am not sure I understand your post.

Luxury jewelry is not subject to the whims of basic economics.

[Star Ferry]

Originally Posted by beshannon

Which crisis?

I am not sure I understand your post.

Luxury jewelry is not subject to the whims of basic economics.

It's pretty clear which crisis the OP is referring to.

Luxury jewelry/watches aren't economical - that much I can agree with. The thought process that goes into buying a Rolex isn't especially rational.

But not subject to basic economics? The data says otherwise. Swiss watch exports to the US fell by almost 50% in the first three quarters of 2009, versus the same period in 2008...

[Rolex addict]

I was able to pick up a very sweet preowned 16622 SS Yachtmaster for $4500 with box, papers, tags, etc. Retail at the time was $9050. I bought several Rolexes between 2008 and 2011. Mostly from my local AD because the economy was still in very bad shape and they were cutting me very good deals.

[daveathall]

To my mind, luxury goods were not that much affected. The rich were still rich. I never saw any sales from the big fashion or watch companies, those that could afford them previous to the crisis were still able to do so. The crash affected the middle earners and lower earners much more than the rich, austerity affects the working man much more than the rich.

[wantonebad]

Originally Posted by daveathall

To my mind, luxury goods were not that much affected. The rich were still rich. I never saw any sales from the big fashion or watch companies, those that could afford them previous to the crisis were still able to do so. The crash affected the middle earners and lower earners much more than the rich, austerity affects the working man much more than the rich.

X2

as a purchaser very little changed for me, as a seller I can tell you demand fell to the floor. I was buying and selling desirable models like Milgauss and Daytona's and that side business went away very quickly. So much so that my last Daytona purchase I kept rather then eat $700. It's now on my BIL wrist. I took a bath on my last three Milgauss' and I don't want to talk about it...

[Dan Pierce]

Hell, I've seen skinny ties come in/ out of fashion 3 times since the start of my existence and many a financial crisis as well.
dP

[gmh1013]

Originally Posted by Dan Pierce

Hell, I've seen skinny ties come in/ out of fashion 3 times since the start of my existence and many a financial crisis as well.
dP

Ive seen 13 POTUS and many "crisis" as well.....which one?
Skinny ties......thats a good one

[carwash66]

Originally Posted by Dan Pierce

Hell, I've seen skinny ties come in/ out of fashion 3 times since the start of my existence and many a financial crisis as well.
dP

Hey...I've still got a few skinny ties! Long gone are the polyester leisure suits and bell bottoms.
To the OP: I've seen a few recessions and a couple of great recoveries. You are young, so if history repeats itself, you will experience the same. Sound financial decisions during the boom times will allow to to buy right during the down cycles. Hope you have a long and happy ride and enjoy many watches along the way.

[bdex75]

Originally Posted by Dan Pierce

Hell, I've seen skinny ties come in/ out of fashion 3 times since the start of my existence and many a financial crisis as well.
dP

Was wearing one today. I am back in style again!!!

I feel like such a hipster.


Sent from my iPhone using Tapatalk

[77T]

The volume of sales for new watches did dip in the years following the last recession. The prices for pre-owned moved very little as quick cash sales were made to cover necessities.

True, the very rich didn't change their habits much. But the ne'er-do-wells and those who spent money they didn't have saw their disposable income sources dry up. As a result those of us buying pre-owned had an ample supply.


Sent from my iPhone using Tapatalk