Rolex is as good as cash

[malarky_hk]

Amusing article about Rolexes being pawned for cash in Macau to fund gamblers making big bets at the tables.


http://www.bloomberg.com/news/2013-0...r-casinos.html

[Armyguy03]

So I guess my question is being that they clearly have an overstock here, are their prices decent

[FNFZ4]

if you buy a Rolex at the right price its better than cash...

[GreatCircle]

Always wonder who actually buys these watches in the pawnshop window that people who pawned them never picked up?

Usually these prices are not very interesting compared to (grey) market prices.

If for example a lightly used 116610LN could be scored for 5K while the pawnshop paid 4 for it to the disfortunate gambler I would understand this pawn market with watches, but now I don't!

Can anyone here read the pricetags on the pic with Rolex watches ?

Or is the Vegas/Macau watch cycle someting like this:

Guys makes quick win, decides to buy a Rolex at the pawnshop without any kowledge of prices and grey market. Guy continues gambling and looses his money and decides to sell the watch back lower to the pawnshop etc etc, this cycle could go on for ever....

[Gaijin]

Nice.. but sad.

[Thatguy]

Originally Posted by Armyguy03

So I guess my question is being that they clearly have an overstock here, are their prices decent

Was wondering same thing. If you guys want to spring for a flight I will go check it out and report back.....

[ispep]

Seems like money laundering on a large scale over there in Macau.

[mjclark32]

Originally Posted by Thatguy

Was wondering same thing. If you guys want to spring for a flight I will go check it out and report back.....

[Tools]

You guys have it backwards..

Gamblers show up with a new Rolex on already.. They have to pawn their watches after they've lost all their money so they can play some more, or get cash to get back home... They usually get a fraction of the market value at a pawn shop..

It's tourists who buy them at Pawn Shops thinking that they're getting a good deal.......

[Armyguy03]

Originally Posted by Tools

You guys have it backwards..

Gamblers show up with a new Rolex on already.. They have to pawn their watches after they've lost all their money so they can play some more, or get cash to get back home... They usually get a fraction of the market value at a pawn shop..

It's tourists who buy them at Pawn Shops thinking that they're getting a good deal.......

So then it's likely that I can't get a good deal from these shops that are busting at the seams?

[seand442]

Watch pawn stars or any other of the seemingly endless pawn shop shows and you can see what an awesome deal you will get, both on the buying and selling of watches at a pawn shop. Not!

[Tools]

Originally Posted by Armyguy03

So then it's likely that I can't get a good deal from these shops that are busting at the seams?

At a pawn shop you can negotiate because they know what they bought it for..

But they also know what the true market is.. If there are plenty of people who will walk in and give them market, then no, it's not likely that you are going to walk out with some killer deal.. They will just sell it to the next guy in the door..

[sea-dweller]

I have visited Macau, and the amount of Rolexes at the pawn shops is astonishing!

[Culley22]

Pawn shops are fun. If you ever want to work on your negotiation skills, go there.

Simple theory, pawn shops buys for 50% of (used) market value. Then they mark the sale price at market value. Someone comes in, they negotiate and like to get around 85-90% of market. But remember, they NEED to sell items to make money. So, that is where the game is played. I like to ask 65% of what they are asking, and top out at 75%. But, it helps to know what the market value is, and what kind of line they are working with. But with some ability (and a TOP pre-set amount in mind) you can get a good deal.

[RS2222]

I wouldn't think the deals are all that astonishing. There's too many people involved that need their piece of a profit.

And negotiating with that bald guy from Pawn Stars is always a losing proposition.

[JohnBoy]

Originally Posted by Culley22

Pawn shops are fun. If you ever want to work on your negotiation skills, go there.

Simple theory, pawn shops buys for 50% of (used) market value. Then they mark the sale price at market value. Someone comes in, they negotiate and like to get around 85-90% of market. But remember, they NEED to sell items to make money. So, that is where the game is played. I like to ask 65% of what they are asking, and top out at 75%. But, it helps to know what the market value is, and what kind of line they are working with. But with some ability (and a TOP pre-set amount in mind) you can get a good deal.

Yup! Usually you get no warranty, no papers, no extra whatever - but if you know your stuff and don't want new and unused, it can be a win/win. / Just be careful!

[Armyguy03]

Originally Posted by JohnBoy

Yup! Usually you get no warranty, no papers, no extra whatever - but if you know your stuff and don't want new and unused, it can be a win/win. / Just be careful!

I like this a lot. Clearly, if its not a door stopper deal, I wouldnt. But I have to wonder if they have over 1k in Rolex watches, they need to more them. I would likely only eye a Sub.

[karlsbad69]

Originally Posted by fnfz4

if you buy a rolex at the right price its better than cash...

yep!!!

[lewisanderson]

I've been to Macau a few times now and the pawn shops over there have some really high end stuff in. There is one in particular, at the side of the Lisboa Casino, that was ceiling to floor watches.

[Armyguy03]

Originally Posted by lewisanderson

I've been to Macau a few times now and the pawn shops over there have some really high end stuff in. There is one in particular, at the side of the Lisboa Casino, that was ceiling to floor watches.

So I guess my point is, what is the point of having this many watches. I mean, unless the store location OH is dirt cheap, then I can see. But if your not moving any watches, whats the point??

[Jsan20]

I would bet the casino owns them and use them to fund degenerate gambling.

[Watchdog]

Originally Posted by Gaijin

Nice.. but sad.

This.

[alanbass]

Thats sad that someone would give away their Rolex in order to gamble.

[watchupee]

Only the very beginning of he article even mentions people pawning thier rolxes for cash to keep gambling. The rest of the article is really about credit lines and curancy exchange. Since Chinese law has a cap on how much money they can bring in these pawn shops sell people rolexes and the customer then returns what they just bought for cash minus 10% for the transaction. So basically the pawnshops are like a no limit ATM and the watches are just a tool to exchange curancy and skirt the law.

[malarky_hk]

I've been to Macau several times but never really knew this was happening. Next time I'm there, I'll be sure to check out a few of those pawn shops to see if there any deals to be had.

[Hairdude1]

Originally Posted by FNFZ4

if you buy a Rolex at the right price its better than cash...

True

[polarinda]

I probably wouldn't wear anything pawned at a shop from a possible gambling addict even if the deal is good.

How much blood on your wrist? just imagine.

[JimmyJ123]

a used watch is no problem the problem is the guy crying becouse he had to pawn it to pay his tab !