Quote:
Originally Posted by jaychief
SS Rolex are a commodity......
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As a graduate of the London School of Economics, I can tell you that stainless steel Rolex are not commodities. They are luxury consumer durables. Commodities are relatively undifferentiated inputs such as sugar and pork belly. Or put simply, metals, energy and livestock.
A commodity has low emotional involvement, low barriers to change of supplier, they are traded through a grading system and priced accordingly. Caviar is not caviar. Some sources remain price stable and Beluga tends to fluctuate for irrational reasons.
Rolex have become, by and large Veblen goods.
Commodities are unbranded $2 digital watches available at the Lo-Wu centre in Shenzhen.