Price increase?

[crimscrem]

Originally Posted by TempoKing

Unfortunately this time Gold will not be going down. China and India with their almost free market economies will be buying heavily. China in particular are importing more than 30.000 oz. of gold per month. With only half percent of their citizens with ownership of any gold other than gold teeth, I predict that the Chinese will be buying the metal with manic desire. The price...yes the price, will jump to more than 1500 per oz. and I am behaving in a conservative mode.

I'm not an expert on this, but as soon as the dollar goes back up in strength won't the price on gold start coming back down? Of course, who knows when the dollar start gaining strength.

[frostie]

Originally Posted by crimscrem

From what I've heard the price increase is only for the US. The two ADs I've spoken with said that they have not received news that there would be a price increase. One specifically stated that he was told a while ago that there would NOT be a price increase until October 2008, but then the price increased a few months later. The guy said that he would not be surprised if there was a 5% or so increase on SS, but repeated that he had not heard from Rolex about it.

The reason I think it'll be limited to the US is because the main reason I hear for the increase is because of the weakening dollar. The other reason is because of the increase in cost of goods (steel, gold, etc.). Obviously the second would apply everywhere. But given the disparities between the US currency and the Euro, I wouldn't think Rolex would stick it to the Europeans.

Hong Kong had a 10% (if I recall correctly) price jump in the middle of December. And Hong Kong's currency is tied to the dollar.

You have a good point there.

[puffnmo]

Originally Posted by TempoKing

Unfortunately this time Gold will not be going down. China and India with their almost free market economies will be buying heavily. China in particular are importing more than 30.000 oz. of gold per month. With only half percent of their citizens with ownership of any gold other than gold teeth, I predict that the Chinese will be buying the metal with manic desire. The price...yes the price, will jump to more than 1500 per oz. and I am behaving in a conservative mode.

Interesting perspective. Very important to factor China and India into projections,as you said.

One question in my mind is, how much pure gold is in a gold Rolex, also a TT. My guess is less than an ounce. Maybe a bit more for the all gold ones. Doing the math, this would not seem to make a huge difference... Larry.

[TempoKing]

Originally Posted by puffnmo

Interesting perspective. Very important to factor China and India into projections,as you said.

One question in my mind is, how much pure gold is in a gold Rolex, also a TT. My guess is less than an ounce. Maybe a bit more for the all gold ones. Doing the math, this would not seem to make a huge difference... Larry.

Todays Gold price around 930...?....A Rolex that is made of gold such as the President, has approximately 3oz.of pure 999 gold, and around 1.000 dollars in parts and labor (some-assembly). You can clearly see that at about 11.000 wholesale they have re-invented a money printing machine all their own. About the dollar, I wanted to retire this year...well thanks to the dollar dynamics which is on par with the Ethiopian Birr, I have lost half the money-power of my savings (wanted to retire in the Greek islands), Now that we do not manufacture hardly anything anymore I am not at all sure that the dollar will ever regain its might against the euro, most likely I will be happy with what I have here in Florida, the choice is no longer mine. Hopefully I will get a LUCKY brake and win the new American dream...THE LOTTO

[robbyrolex]

I beg to differ, I think the recession is on our doorstep. Nobody wants to admit it. Hang on!

[CPCC]

Spoke to an anonymous source. Price increase has been finalized. Pretty steep compared to past increases. Weak dollar played a big part in the increase. We should now be shocked when we see it shortly.