On a recent visit to the big smoke( obnoxious ostentation its hallmark - but strangely engaging people ) I dropped in to a leading watchmaker to find out what it would cost to service my JleC watch. R7000.00. I also was told that to replace it with the latest version - simple gold dress watch , no complications, would amount to R181 000.00. So as I look at the price of CFR - 23% down ytd, I am thinking that my position is calling to be added to. If these guys are not bombproof asking prices like that and surviving then I don't know - and so I shall keep an eye on the price... As for this Brexit - well I was wrong - fortunately not alone - if there is any solace in that , its more than obvious to me that with 70% of Developed nation sovereign bonds yielding less than 1% ( are people crazy playing musical chairs like this?) the money is going to find homes - but those homes are going to change -because this is going to be like crossing the north sea on an ironing board
I read a report from Switzerland recently that the sale of luxury watches was down and dropping. Then I had reason to speak to my ex who is with Cisco in San Jose. She said that nearly all the young, rich tech guys and girls she knows no longer wear luxury watches or any watches. They don't wear Apple watches either but that is another subject. I am wondering if there is not a trend away from the fashion of displaying wealth?
In reply to Klapka and others. The point is that there is , it seems , very little price/volume drag in this market - in other words price is not a determinant of sales- given the target market who are relatively untouched by market turmoil. The idea that watches could be in terminal decline lacks support. Extended evidence is needed to justify that view - not natural market inclines and declines. Frankly I would be in mild shock if the sales of luxury watches was rising in these times? it just would not be logical for that to happen.