Any watch that comes out now was manufactured with materials bought 36 months ago

And these materials are very often precious metals like gold and platinum 

Which creates a lot of leverage in the cost for the manufacturers in the retail market

That’s why I always say jewelers are thieves b/c they make money from every angle

Jewelers will give people a way higher dollar product b/c they’re adjusting their dollars to the current market condition. 

Let’s say gold was $1600 at the time they’re buying material. 

But at the time the watch releases it’s now $2200. 

So which pricing do you think is going into effect to offset that?

Obviously the higher amount. 

Because what they’re doing is realizing profit. They have parked money into gold and held that profit. 

But at the time they’re releasing they’re charging you somewhere around $2500 b/c they’re accounting for their cost of replacement for that gold, which is $2200

So there needs to be a margin now even though their real money was holding money. 

This is why I say have you ever met a poor jeweler?

Alternatively they may take positions where they don’t believe gold is going to stay. 

So they invest in 12 month increments and replenish supply 12 months at a time until prices level back down. 

This is the kind of stuff that people aren’t talking about in the watch world. 

It’s the stuff going on behind the scenes with jewelers and watch economists that you need to be aware of to play in the game responsibly and profitably.