SUBMARINER DATE 1973-2010 = 8.3% increase/YR

[andyboy39]

Originally Posted by Maxtor

Based on your data I think the time to buy a Sub was 1973.

Right on

[jay1988]

Interesting posts.

I'm assuming all brands do something similar. Makes me wonder if I'll be able to actually get my Patek when I'm older or if the price increases will of taken it out of my reach. I guess this is motivation to work my a** off during college to get the best job I can and afford as much as I can.

[crowncollection]

Don't stress, if we keep our watches until then, maybe our current collections will be considered vintage and worth enough to buy new models

[SubTTKky]

In 2011, the relative value of $385.00 from 1973 ranges from $1,550.00 to $4,200.00.

A simple Purchasing Power Calculator would say the relative value is $1,950.00. This answer is obtained by multiplying $385 by the percentage increase in the CPI from 1973 to 2011.

This may not be the best answer.

The best measure of the relative value over time depends on if you are interested in comparing the cost or value of a Commodity , Income or Wealth , or a Project . For more discussion on how to pick the best measure, read the essay "Explaining the Measures of Worth."
If you want to compare the value of a $385.00 Commodity in 1973 there are three choices. In 2011 the relative:
real price of that commodity is $1,950.00
labor value of that commodity is $1,760.00(using the unskilled wage) or $2,090.00(using production worker compensation)
income value of that commodity is $2,860.00


If you want to compare the value of a $385.00 Income or Wealth , in 1973 there are three choices. In 2011 the relative:
historic standard of living value of that income or wealth is $1,950.00
economic status value of that income or wealth is $2,860.00
economic power value of that income or wealth is $4,200.00


If you want to compare the value of a $385.00 Project in 1973 there are four choices. In 2011 the relative:
historic opportunity cost of that project is $1,550.00
labor cost of that project is $1,760.00(using the unskilled wage) or $2,090.00(using production worker compensation)
economy cost of that project is $4,200.00



http://www.measuringworth.com/uscomp...ativevalue.php

[Micha]

Originally Posted by Maxtor

Based on your data I think the time to buy a Sub was 1973.

LOVE IT!!!!!

[cross]

think about it this way...if Rolex, PP, Lange, Omega, Zenith, JLC, AP etc. all didn't increase their prices but instead gave increasing or bigger discounts year on year...do you think you would buy them? would people even 'desire' them?

The reason they increase prices is because they are being "priced" as luxury or "semi-luxury" items. These things become more desirable to people because of their perceived 'status' as reflected by their prices - they appeal to the emotions ...and are bought on emotions.

If everybody thought rationally, do you think any 'luxury' brand would survive?

we would all be wearing timex or seiko 5 (not grand seiko) etc. ...they tell time just the same anyway


lastly, by the time a submariner costs 12k USD...the PP Aquanuat would cost 25k USD anyway.


just my opinion.


cross

[snowbird]

It's not just Rolex. I believe you'd find something similar if you compared Porsche prices over the years, for example. The prices of some luxury goods have been rising much faster than the general rate of inflation.

[Solo118]

Originally Posted by snowbird

It's not just Rolex. I believe you'd find something similar if you compared Porsche prices over the years, for example. The prices of some luxury goods have been rising much faster than the general rate of inflation.

Absolutely. In just the past 3-4 years I have seen luxury goods skyrocket. When you buy a Rolex for example at least you can get some discount on nearly any model.

Now try walking into Chanel and getting a jumbo pocketbook for $1 less... they rather burn the goods then sell at discount. The price has gone nearly double in 5 yrs for a darn pocket book! My opinion is that they are not going with the rate of inflation rather they are trying to push away the middle class customers who would only buy a bag or whatever once every couple of years.

[ROGERWILCO357]

yeah those prices are worth going back in time for..buy 200 pieces and travel back 2012 ..oh and pickup some classic muscle cars while at it..Mustang Camaro Firebird Corvettes etc…like the stats nice job either way worth the read..

[Gary Busey]

google;

''paramico watch fund''
http://rolexpassionreport.com/5259/i...atek-philippe/

hes an ex italian bond option trader that started a collection of the most rare pateks and trolexes (typo, but i left it like that, its funny). His fund is doing really well.

one thing to consider tho....maintenance cost should be added to the price, since its a negative Cash flow, it will ultimately affect return.

-GB, repeating what Roubini is whispering in his ear

[Brian J]

Originally Posted by ROGERWILCO357

yeah those prices are worth going back in time for..buy 200 pieces and travel back 2012 ..oh and pickup some classic muscle cars while at it..Mustang Camaro Firebird Corvettes etc…like the stats nice job either way worth the read..

Now this is just ridiculous, obviously you can't fit a corvette into a time machine.

[Tudor66]

Reviving and old thread here. I like wearing a watch that was just a few hundred dollars in 1971 or so- though that was a lot of money back then...
[IMG][/IMG]

[etp095]

Originally Posted by Tudor66

Reviving and old thread here. I like wearing a watch that was just a few hundred dollars in 1971 or so- though that was a lot of money back then...
[IMG][/IMG]

Sweet looking red you have there.

[Bdiesel570]

Thanks for reviving this, was most definitely an interesting read to say the least.

[landroverking]

Well in 1974 a Chevy truck fully loaded cost $4080 today it's 50 grand. Inflation is just that inflation has very little to do with real value unless compared to a benchmark say 1968 dollars.