Horological Meandering

RED ALERT! For our members who are constantly wiring monies to Switzerland (probably to pay for our mechanical watch, clock, music box, chocolate bars, and/or belt buckle bills) there is a big problem heading our way... The Swiss franc has been getting ex...  

A few members asked me why this was happening off line. And I think the most well accepted explanation was the fact that the world's wealthy have been divesting out of the stock market and sitting on more cash. And a portion of that cash has gone into the... 

If you can afford 6 figures for a watch, it is not really a big deal. Mentally I already calculated this into the price of my voutillainen as I always figure FX will work against me lol

Do not forget that the rich are the "most price sensitive".... Called "complaining at a very high level"

Unlike M2, I do not plan ahead for major currency fluctuations. I expect currencies to be fairly stable. I guess I'm not a great chess player today - I didn't predict this unexpected move!

That actually would've had more positives than negatives. Especially since most of the economic system in Canada is quite similar to the economic system in USA. But bigger powers at be were against this.

watches on the secondary market as a side effect. What are your thoughts on this and also how it may affect auction prices? Thanks for any insight.

It's definitely possible - if brands increase the prices of new watches, used watches should increase as well. Rising tide should lift new boats and used boats! The big problem is that big brands need to generally have stable prices. And this will hurt th... 

Try checking USD against Mexican Pesos, now I cannot afford going there anymore lol… Also remember in 2015, PP decided to decrease their price by 7% because of CHF? I will never forget because I bought my very first PP in 2014 and never expected a dream m... 

I did not enjoy Cabo the last time I was there. Stayed at the Waldorf Astoria and the JW Marriott and was far from impressed. The bill was sky high too. I'd say save your money and go to the Maldives instead! The Peso is in demand. Billions of dollars of ... 

... With this fact in mind, some CH investors are also exchanging CHF into USD and investing in treasury bills and / or gov. bonds that are actually yielding over 5%... Again, they do take the risk in the fx, knowingly that USD is histrocally very low. I ... 

Fuel costs around 1.27 Swiss francs a liter in California, USA. Much less than fuel in Europe. But a Dodge Demon DRINKS A LOT OF GASOLINE! Probably more than double the typical petrol car in Europe! So it costs a lot to operate, even in USA. Now imagine i... 

Ideally you gain on the currency as well, but i am afraid for the moment it goes rather the other way, but the ccy risk taken is usually part of the strategy.

Here in California it's really become Tesla-Country. In fact, it almost looks communist! Everybody drives the same car. At an intersection in my town (which is a high percentage Tesla town), it's not unusual if 30% or more of the cars are all Teslas. Almo... 

...and it's a double whammy, too. on one hand there's the watch bubble deflating over the past year, and on the other there's the more recent spiking swiss franc. a sharp example of this could be ming, which prices its wares in chf. look at listings on c2... 

The vast majority of our readers have multiple watches - and generally enough to last the rest of their lives. Many of our readers (possibly still a majority) have so many watches that they could live multiple lifetimes with the watches they currently hav... 

and it has been going on a wild run for the last year. but even if you zoom out to a 10 year window i believe we are in an all time high. i have watches ordered (from independents) and they were supposed to be delivered later this year but i am seriously ... 

The rates are definitely sky high! And still climbing! It's now 1.16 USD per CHF so it's climbed another percent in a short period of time!

Dear Patrick, Thanks for your deep dive analysis. It's really got me thinking, and as a Swiss, I feel I need to add my own thoughts into the mix. A strong Swiss Franc can really stir the pot for businesses that depend on exports. Our central bank has limi... 

This definitely makes me slow down on new orders. I don't need to order more watches. But I feel for our readers whom have watches on order already - and those watches are undergoing these noticeable price increases just from the exchange rate alone. But ... 

The question is why do Swiss brands constantly increase their CHF prices... Inflation never been more than 3.5% or so but we have seen double digit increases over the last 1-2 years. Often cited here JLC and so on...🤔

Management compensation structure is all about growth. And these executives need to strike while the iron is hot. Many brands' boards didn't limit the executive on how much percentage they can increase the prices. A lot of the executives are mercenaries. ...