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Old 13 July 2013, 01:24 AM   #31
mr.president1
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NOT GONNA HAPPEN!!! You won't see Rolex lowering their prices.... LOL
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Old 13 July 2013, 01:28 AM   #32
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This is my take...as long as they buy rolex watches rolex will never decrease their price. And when did they ever decrease their prices???
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Old 13 July 2013, 01:30 AM   #33
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Agreed. Nothing will happen.
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Old 13 July 2013, 01:42 AM   #34
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Rolex hedges all their raw materials costs via physical buying, investment instruments and futures contracts methinks. Anyone who relies on raw materials does this.

Airlines hedge jet fuel; Mercedes hedges steel and palladium; Jocke hedges meatballs...oh, couldn't help it
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Old 13 July 2013, 01:59 AM   #35
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Maybe this is an extreme example, but a PP steel minute repeater is not cheaper than the gold equivalent, that tells you all you need to know about how much raw material cost really matters.
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Old 13 July 2013, 02:53 AM   #36
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No way! On top of that big manufactures make buys in all industries. Im sure their on hand gold would take a few years to get threw there stock on hand at the prices paid. So it would have to first level out. Even if that did happen and they made a big purchase at a better price at very best they will raise the margins for AD's not lower msrp to the public. Neither is going to happen with Rolex. Im in the electronics industry and it seems our manufactures are at a race to zero. Don't we all wish that would be the case with Rolex!
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Old 13 July 2013, 03:07 AM   #37
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It means Rolex will increase their price by 5% next year.
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Old 13 July 2013, 09:53 AM   #38
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Don't worry about gold prices as a gold Rolex can easily be bought bnib for 30% off retail, something you cant get anywhere near in SS, so theres your falling gold price.

The only way gold prices will affect Rolex pricing negatively is if there is widespread international continuous media coverage of tumbling gold prices that grips worldwide attention and demand who are then largely persuaded that their high luxury/conspicuous consumption watch purchases are now a total rip off and they are being so played that they are considered fools by even the general public and demand drops off so markedly that Rolex have to drop prices and margin to increase volume to recover pre-crisis profit levels.
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Old 13 July 2013, 10:36 AM   #39
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Quote:
Originally Posted by bayerische View Post
Shouldn't Tiffany then change their prices "a bit".

Even if gold goes down, Rolex won't follow.
Hello Andreas, is this the same Andreas from the Beoworld forums? :)
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Old 13 July 2013, 10:47 AM   #40
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I think they are rubbing their hands with excitement as profits increase.
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Old 13 July 2013, 01:49 PM   #41
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The brand the does follow gold prices it seems transparently is Cartier.
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Old 13 July 2013, 04:15 PM   #42
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Didn't PP or AP had a big price reduction on some of their watches in HK?
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Old 13 July 2013, 07:47 PM   #43
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Quote:
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nope, the main factors driving the price in my opinion are demand and to an extent labor. If the watches are selling at current prices they're only going to go up regardless of the material costs.
+1
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Old 13 July 2013, 08:07 PM   #44
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Quote:
Originally Posted by cl600599 View Post
Gold prices at $1283 what will this mean for gold rolex models?????
If gold has gone down it means Rolex will put UP the prices!

Quote:
Originally Posted by codecow View Post
Nope, the main factors driving the price in my opinion are demand and to an extent labor. If the watches are selling at current prices they're only going to go up regardless of the material costs.
You are very right, if material costs were the only deciding factor, an SS Rolex would cost about $50. Bare Steel, even 904L is almost worthless on it's own and the only reason I gave a $50 estimation is for the very small amount of gold on the markers and dial.
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Old 13 July 2013, 08:29 PM   #45
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Old 13 July 2013, 08:30 PM   #46
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??

Quote:
Originally Posted by Puffy View Post
Gold will hit $1000 and quite possibly $800 if $950 resistance is broken

It is not the subject of a forum of watches but still disagree.
This is a game. There is no logical explanation that gold is in these low prices only knowing as bucks printing machines should be working non-stop and the deficit increases every day.
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Old 13 July 2013, 08:40 PM   #47
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I just sent an advice

Quote:
Originally Posted by cl600599 View Post
When the driving factor of price (which is gold) decreases, shouldn't that mean rolex will lower their prices of gold watches???????


I will be very upset if rolex keeps their prices the same when their costs significantly decrease.

i want to buy a solid gold rolex, but the prices are extraordinarily high because of gold being high.

I want to wait till rolex lowers their prices of solid gold models down a few thousand dollars and then buy



WHAT DO YOU GUYS THINK ABOUT GOLD BEING A FACTOR IN ROLEX'S PRICES???
I meant June 2012 without increases. Take care! watch out!
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Old 13 July 2013, 08:41 PM   #48
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Should have zero impact at all.

Selling price is based on total margin maximization and elasticity.

Gold could fall through the floor, but if people keep on buying a given watch a given price, they will not lower the price.

The reverse holds true to the point of negative margin.
While I agree with the general opinion on the thread, I disagree with the part in bold.

If gold really hit the floor for some reason then Rolex would have to change their prices imo. People would not keep buying the watch at the price. Most Rolex buyers aren't idiots. They will see that gold isn't valuable anymore and the interest in gold watches will change.

Most of you probably disagree with me but I'm talking about it if gold drops to $300 which is what I'm taking from "fall through the floor". I can't see people paying £25,000 for a DDII if gold is that cheap.
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Old 13 July 2013, 08:45 PM   #49
Aventura
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Why mext year?

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Originally Posted by lamnyc View Post
It means Rolex will increase their price by 5% next year.
Do you think that Rolex will skip the increase of 2013??
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Old 13 July 2013, 08:59 PM   #50
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Quote:
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Do you think that Rolex will skip the increase of 2013??
I think they may skip the increase on gold (but not decrease) and only increase SS models. They did the opposite a while back when gold was climbing very fast. they increased the gold ones a lot but the SS ones stayed almost the same with only a small increase. Well, here in the UK at least.
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Old 14 July 2013, 12:09 AM   #51
Thebiglagu
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Stainless is an extremely cheap metal but a 116610 is still $8500 or so. That's a much bigger margin than an 18k piece.
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Old 14 July 2013, 12:11 AM   #52
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Rolex sale?! Not gonna happen no matter what the cost of gold or any other metal for that matter.
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Old 14 July 2013, 03:55 AM   #53
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This is a bit OT but I read somewhere that the average cost per ounce to mine gold is around $1200. I can't see the spot price going much lower based on that but I am no economic or precious metals expert either.
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Old 15 July 2013, 09:52 AM   #54
AnnemarieGirl
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Do you think that Rolex will skip the increase of 2013??
No. I believe that an increase is due any time soon. Tag have just had one and when this happens the other manufacturers soon follow suit. AM.
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Old 15 July 2013, 10:06 AM   #55
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The price doesn't necessarily have to drop, but it would be nice if they didn't increase it for five years.
Five years? What planet are you from?
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Old 15 July 2013, 12:03 PM   #56
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It means Rolex profits will soar, as the cost of raw materials drop and the selling price holds stable.

Where it will help us watch buyers is in the used all-YG models, where yes the pure melt price establishes the floor price for even a model with broken movement, scratches, etc.
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Old 15 July 2013, 12:37 PM   #57
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Hahahahahahaaaaaa!! Yeah..never...Prices always go up! Gold prices and Rolex Gold watches have ZERO to do with Spot Gold Prices.
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