Is it possible for Rolex watches price to drop? due to several reason

[breitlings]

Even if the modern civilization ended for whatever reasons, I think they still would be incredibly valuable unlike an iwatch.

But in the interim if there are more sellers than buyers the price may go down on certain models, but historically some of the ugly ducklings become swans it seems with the early daytona and milgauss. So it is possible the price will go up too.

[Al1969]

Possible, but unlikely.

[Alex Ks]

Originally Posted by CashGap

I had a professor in grad school, 2001, tell us that deflation was no longer possible.

Boy, did he miss it.

Yes, OF COURSE Rolex prices could drop. Let's take USA MSRP for a moment.

Today the US Dollar is worth .96 Swiss Francs. For a moment, let's ignore the fact that Rolex is probably hedged in perfect alignment with their material source and sales channel currencies. At some point... twelve months, three years, five years, they'd be unhedged.

So if a particular reference sells for $10,000 USD today, and the dollar went to 1.92 CHF and stayed their for ten years, do you honestly think the USD price would not drop? Or if it went the other way, and USD=.48 CHF, do you think that watch would be as in demand in the US at $20,000 USD?

In the first case, what you might see is an extended period time (years and years) with no MSRP increase, to allow the market to grow into the pricing.

This gets hideously complicated, because we've only discussed one market.

So I'll go with "It could happen, and would probably be the least of our worries if it did".

Why do we have such a tough time accepting this? Because we have recency bias. Lately, all we've seen is increases in luxury goods priced in our currency. And we've seen it long enough, we think it can't go another way.

Sort of like how in 2007, after 25 years, many believed "Real estate only goes one direction in price... up. Did you ever hear of a house that was cheaper this year than last year? Of course not. Real estate goes up forever".

Until it doesn't.

"Until it doesn't" - I wish there was a 'drops mic' smiley!
Really well put my friend. Kudos!

[enjoythemusic]

Was at an AD and they said I should buy now because prices will drop next week. The ceramic Daytona I was looking at JUST arrived and while the AD said there was no one else wanting it, three more are arriving in two days so I should buy it now.

[Mick P]

Chaps

Bubbles burst all the time and a Rolex watch is no different from anything else.

Todays 20 somethings may lust after a Rolex in 10 years from now or they may just think of them as naff.

40mm watches may go right out of fashion, ostentatious jewelry may go out of fashion, no one knows, so buying a Rolex as an investment is plain risky.

Regards

Mick