There are numerous saying that Rolex Bubble will burst!
This is my understanding:-
1. Exponential rise in demand.
2. Increase interests in luxury watches in the general public.
3. Not just Hong Kongers, US, EU, but Chinese, Taiwanese, Singaporean, Vietnamese, Myanmar are coming to join this game.
4. A relatively small supply.
5. Money is nothing and bank interests is a joke comparing with the money invested on hot watches.
6. Record-breaking auction prices.
7. More collectors, celebrities, investors are treating watches as an investment.
8. Rolex and many other makers are shutting down factories and manufacturing facilities due to COVID-19.
9. Promotion from watch blogger, watch youtubers, watch sites.
10. Watch is a small, artistic, valuable items that can be used for show off as social status.
11. Watch itself can be a new currency for people to move their asset.
12. Watch trade is simple and easy, of course background check on buyer is needed.
13. Many people spend their time in watch trade during this COVID-19 as they can't travel, they have accumulated a lot of spending power.
14. Many middle class of Chinese are prioritizing watch to real estate as in investment.
Price of watches
The Rolex Hulk 116610LV is now $330,000, unbelievable high, Daytona 116500LN White is $400,000
Patek 5711R is $3m, 5712A-001 is $1.3M...
Will the bubble be bursted?
I don't think so as watches like Rolex with all the inflated value on the 200,000 (not all Rolex watches is under the hype) hot watches made a year is just about US$1.5B, that is nothing as that is only one week's printed output of the Federal Reserve' De La Rue money printing machines.
HK Snob
No comments:
Post a Comment