Gold and Rolex

[Vivalas]

Gold prices are 40% off their peak and some are predicting it to go below $1,000. The dollar is also soaring ($1.58 to the £ and not long ago was $1.70). All the signs are for falling precious metal prices.

Over the last few years I've heard people say (many pre owned dealers granted) that gold and bi metal Rolex watches have risen in the pre owned markets partly due to the value of the precious metal itself. Well maybe it was partly true and maybe it was hype, but good as a sales pitch none the less.

So if gold keeps falling and falling, in theory the same should happen with the watches. Whilst I doubt it will for many reasons, it will be interesting to see if there's any change over the long term.

As for Rolex themselves, I wonder if they will take advantage of this and increase their stock. In theory they will be able to make their watches for less and increase their margins quite substantially.

I won't hold my breath waiting for them to discount