bigfatpaulie
Headphoneus Supremus
It comes from the back drop where the the previous questions come from.
Buying something at MSRP and flipping it the same day != smart investing. It is printing money, the vast majority of people cant do this because of what it takes at an AD to get the opportunity to buy at MSRP.
And that whole attitude is what is ruing the market for true collectors and enthusiasts.
Edit :: I may be slightly annoyed because I want my damn TT skydweller but I am not willing to lie about my intentions to my AD.
Flippers are certainly an issue, but isn't the fault of the flipper. I understand why they do it. It is easy money. I also understand the other side - someone who just has to a certain watch and is okay paying a premium, hence validating the flipper.
These prices are the fault of one type of person (the flipper or flipee(?)) they are the result of a much larger shift. Price, as the old fashion adage goes, is determined by supply and demand. Rolex still makes the same number of watches today that they did 10 years ago so supply hasn't changed which only leaves demand. Fine. Why has demand sky-rocketed? The reality is that China is a massive, fast growing economy, and that's great for the people of China. It is no secret that living conditions for some people in China are atrocious and as more equity is built in China the standard of living will rise for the people there: that is super positive. On the top side, there are more people with disposable income in China now than ever before. And there are A LOT of people in China. So that is, largely, where the new increased demand is coming from which is what is tilting the prices.
So will the "bubble" pop?
Yes. No. Maybe. And here's why. Will China stop? Sure, their economic growth will slow, start, take a step back, grow more and do all sorts of things as it develops, but long term, it will yield a net growth. China will become a first world country and they aren't going backwards. As a result, Rolex will likely increase production but it won't match the increasing demand, it will take years. Now let's consider the world a decade from now and China has leveled off a bit and Rolex has increased production. India is another emerging economy and they will start experiencing the same the increase in living standards, disposable income and a desire for the wealthier citizens for luxury watches.
The world, thankfully, is getting better and better everyday.
Does this ruin the market for "true collectors and enthusiasts"?
In my opinion, no. The AD that sold me the Sub - arguably one of the most in-demand 'hot' watches on Earth - appreciated that I am an enthusiast and trusted that I am not a flipper. I've only ever purchased one other watch from them: a steel Rolex 3 years ago and that's it. How long did I wait for my Sub? 2 hours. I built a relationship with a gentlemen that works there over the years by popping in and chatting. He called me as he had a few other Rolex watches that came in and asked if I was interested in one of them. I politely passed and said that I only was really interested in a green Sub. Two hours later, he called me back.
The point of my story, I paid retail for a very in demand watch. I'm not a high rolling VIP client. Enthusiasts still have access to what they want. And people are living better.