“Not a Supply Issue / There is NO Shortage” Says Govberg

[vh2k]

Originally Posted by CashGap

Sigh.

So, I guess there are two schools of thought here:

Camp A - All the Rolexes end up at end users eventually. Most go from the AD to an end user. Some go from an AD to a grey, or AD to flipper to grey, and then to an end user. End of day, the watches end up with an end user, except the miniscule current inventory of greys. This is supported by the explosion in wealth worldwide and all observable data.

Camp B - Greys are amassing amounts of Rolexes that will soon equal the mass of the moon. A few Rolexes go from AD to an end user (and these are the "only truly worthy buyers/only true watch lovers/other affectionate term"). Some go from an AD to grey to end user, some from AD to flipper to grey to end user. But the real problem is that more and more are piling up at the greys, yet those greys continue to have the cash to buy more and more of inventory they can't move. This is supported by a belief that rich people have mostly stopped wearing watches, except Apple watches. Though the government is uninvolved beyond their involvement in other retail businesses, this is not a free market. It would only be free if Rolex flexed muscles and made more rules.

Did I at least capture the theories? I'm not trying to mock the obviously flawed insane theory, just trying to understand it.

Well, I’m in Camp A... and I think you captured that fairly.

Do some wolves hoard ALS and FPJ and some McNuggets because they want to sell at a higher price later? Sure. But, McNuggets are a commodity, the market leader, the favorite, with massive brand power, and more customers than all the other players... and better suited for the quick flip.