TR-DK
07.07.2006, 09:16
PRWeb (http://www.prweb.com/releases/2006/07/prweb406439.htm)
Pre-owned Rolex Watches: Yee-Gads – Rising Gold Prices Are Even Driving Up the Cost Of Used Rolex Watches, says San Francisco Gem Expert
Even pre-owned Rolex watches – not just new ones – could rise sharply in price right along with the price of gold, claims a California gemologist who says consumers who wait until Christmas to buy the upscale Swiss watches risk paying from 10-30 percent more than the timepieces cost today.
San Francisco, CA (PRWEB) July 5, 2006 -- Jewelers who trade in the pre-owned Rolex market may be forced to raise prices as much as 30 percent long before the Christmas buying season begins,” says San Francisco gemologist Avi Dayan. "With gold topping out at more than $700 an ounce last month – and forecasters predicting higher valuations ahead – some Rolex lovers may start holiday shopping early.”
Dayan says climbing interest rates, the weak U.S. dollar and the war in Iraq have made gold and other precious metals more valuable than they’ve been in 25 years. "Experienced Rolex collectors are keeping their eyes on the price of gold,” he says.
“Some consumers believe it’s only new Rolex watches that are affected by soaring gold prices – but that’s not the case. The cost of merchandise in the pre-owned Rolex market is directly affected by activity in the new Rolex arena,” says Dayan.
Rolex SA, the Swiss company that has manufactured luxury timepieces since 1905, vigilantly controls the market, says Dayan. “Rolex never floods the market. You won’t see an oversupply of Rolex watches in jewelry stores.”
Such controls make the new watches scarce, says Dayan, a graduate of the Israeli Gemological Institute. “As a result, some jewelers deliberately ‘hold back’ their Rolex inventory during unstable times banking on a better price later. If the price of gold continues to go up, by Christmas, those same retailers will be pulling their Rolex merchandise out of the case, adjusting the price upward and making a bigger profit.”
Dayan says there is no scarcity of watches in the used Rolex market. “While the price of pre-owned Rolex watches is impacted by steeply higher gold prices, inventory is not held back because a worldwide network of buyers is continually providing a quality supply to dealers. There is just no incentive for a used Rolex dealer to hold back,” he says.
“Typically, there is lag time between rising prices in gold and higher costs for watches,” says Dayan, “but eventually the lag time ends and the higher prices begin.” When the pre-owned Rolex network is forced to pay from10 to 30 percent more for a timepiece than they paid for a similar watch even a couple of months earlier, you’ll see the higher cost passed on, he says. Soon, the increased cost filters down to the doctor’s wife who wants to surprise her husband with a Rolex on Christmas morning.” Dayan says prices on a Rolex President could go up as much as 10 percent and 30-50 percent on various gold and stainless steel styles.
“Jewelers must answer this question: ‘Should I charge the consumer what I paid for the watch, or should I charge what it’s going to cost me to replace it?’ The gold market is putting pressure on the Rolex market and consumers may see higher prices before summer’s end,” says Dayan.
For more information about the impact of rising gold prices on the pre-owned Rolex market, contact Avi Dayan, owner of San Francisco-based A&E Watches at (415) 437-3263.
Pre-owned Rolex Watches: Yee-Gads – Rising Gold Prices Are Even Driving Up the Cost Of Used Rolex Watches, says San Francisco Gem Expert
Even pre-owned Rolex watches – not just new ones – could rise sharply in price right along with the price of gold, claims a California gemologist who says consumers who wait until Christmas to buy the upscale Swiss watches risk paying from 10-30 percent more than the timepieces cost today.
San Francisco, CA (PRWEB) July 5, 2006 -- Jewelers who trade in the pre-owned Rolex market may be forced to raise prices as much as 30 percent long before the Christmas buying season begins,” says San Francisco gemologist Avi Dayan. "With gold topping out at more than $700 an ounce last month – and forecasters predicting higher valuations ahead – some Rolex lovers may start holiday shopping early.”
Dayan says climbing interest rates, the weak U.S. dollar and the war in Iraq have made gold and other precious metals more valuable than they’ve been in 25 years. "Experienced Rolex collectors are keeping their eyes on the price of gold,” he says.
“Some consumers believe it’s only new Rolex watches that are affected by soaring gold prices – but that’s not the case. The cost of merchandise in the pre-owned Rolex market is directly affected by activity in the new Rolex arena,” says Dayan.
Rolex SA, the Swiss company that has manufactured luxury timepieces since 1905, vigilantly controls the market, says Dayan. “Rolex never floods the market. You won’t see an oversupply of Rolex watches in jewelry stores.”
Such controls make the new watches scarce, says Dayan, a graduate of the Israeli Gemological Institute. “As a result, some jewelers deliberately ‘hold back’ their Rolex inventory during unstable times banking on a better price later. If the price of gold continues to go up, by Christmas, those same retailers will be pulling their Rolex merchandise out of the case, adjusting the price upward and making a bigger profit.”
Dayan says there is no scarcity of watches in the used Rolex market. “While the price of pre-owned Rolex watches is impacted by steeply higher gold prices, inventory is not held back because a worldwide network of buyers is continually providing a quality supply to dealers. There is just no incentive for a used Rolex dealer to hold back,” he says.
“Typically, there is lag time between rising prices in gold and higher costs for watches,” says Dayan, “but eventually the lag time ends and the higher prices begin.” When the pre-owned Rolex network is forced to pay from10 to 30 percent more for a timepiece than they paid for a similar watch even a couple of months earlier, you’ll see the higher cost passed on, he says. Soon, the increased cost filters down to the doctor’s wife who wants to surprise her husband with a Rolex on Christmas morning.” Dayan says prices on a Rolex President could go up as much as 10 percent and 30-50 percent on various gold and stainless steel styles.
“Jewelers must answer this question: ‘Should I charge the consumer what I paid for the watch, or should I charge what it’s going to cost me to replace it?’ The gold market is putting pressure on the Rolex market and consumers may see higher prices before summer’s end,” says Dayan.
For more information about the impact of rising gold prices on the pre-owned Rolex market, contact Avi Dayan, owner of San Francisco-based A&E Watches at (415) 437-3263.