No. 222 ~ Coronavirus and the watch market, Part 2

Hello! This is Kaneko from Commit Ginza. Continuing from yesterday's article about the coronavirus and the watch market , We will talk about price falls and rises during economic downturns. The market price of a watch may go up or down, As I think you all probably think, the basis is within the realm of relative transactions. If we look at value based on the Japanese yen, This is the case, but it is a situation that is unique to Japan in the world. Let's say a Rolex you bought for 1 million yen is now worth 900,000 yen. Rather than simply accepting it as a price drop, Previously, the same Rolex model could only be purchased for 1 million yen, but You can now buy it for 900,000 yen. Rolexes are the same thing, so you can buy the same thing for less money. It can also be said that the value of the Japanese yen has increased. After all, at that time stocks and financial products were also falling, For 900,000 yen you could buy 1 million yen worth of shares. Japanese yen, or "cash," is also an asset. It is also an asset that can only be used domestically. If you look at Brazilian real and Russian ruble banknotes, It doesn't have the same emotion as a 10,000 yen bill, and to put it bluntly, it's just a piece of paper. On the other hand, I think people in Russia and the EU view Japanese yen banknotes in the same way. In today's global world market, Margin trading will become more and more popular and price corrections will occur quickly. About 15 years ago, the stainless steel model of the Ref. 16520/El Primero Daytona was It was very popular. At the time, it was being sold for around 1.2 million yen in Japan. At the time, the combination model Ref. 16523 was unpopular. It was being sold for about half price, about 600,000 yen. At the time, it was priced overseas at around 1.2 million yen, almost the same price as the stainless steel model. It was a time when people from overseas could buy things cheaply in Japan and bring them back home. Nowadays, the Internet is widespread, It's safe to say that the price difference has almost disappeared. Currently, prices are almost uniform around the world. In this global age, we are now in a position where we can use our website and Instagram to Popular brands include Rolex, Patek Philippe, Audemars, Richard, and Lange. Thailand, Korea, China, Türkiye, Taiwan, Singapore, etc. By ordering online from other countries, In some cases, tickets may sell out within seconds of being posted. Earlier, I talked about the position of each country's currency. Watches are valued just like US dollars, art, fine art, gold, bullion, etc. It is recognized as an "asset" in countries around the world, Its value is recognized globally in every country. In the world, there are more people who would be willing to pay more than 1 million yen in cash. I think a Rolex worth 1 million yen is generally recognized as being more valuable. In other words, Rolexes and Patek Philippes worth 1 million yen, 5 million yen, and 10 million yen When it comes to purchasing something, most Japanese people worry, think, and I think when you buy something you make a "decision." Of course, there are some people who make an immediate decision after just one response. This may just be my opinion, but please think about it again. In many countries around the world, Rolex watches are highly valued. Isn't there no need to worry about transferring equivalent assets? (laughs) I spent 1 million yen on plane tickets. I drank 1 million yen worth of wine at the club. These are considered to be very luxurious experiences purchased. The act of buying a watch can also be understood as a simple relative exchange. This is completely different from spending money on food, drink, or entertainment. For those who have purchased with Commit, we are offering trade-ins for new products, There have been several hundred cases to date where these have been sold off as a means of disposing of items that were no longer needed. The buyback rate for these coins is approximately 95% of their face value. The actual result is that you can use it and enjoy it, and it will only lose 5%. https://www.commit-watch.co.jp/buyer/achievement/ This 95% return record is from the five years since Commit opened. The average holding period is short, as some cases were sold within 2-3 weeks. If you were to sell something you bought five years ago, it would have cost a lot more, on average. However, unfortunately, just like with clothing, the value peaks when you buy it and then declines. On the other hand, some watches will become significantly less valuable. There are many factors involved, such as popularity, brand, year, and condition. Things that are valuable, functional, cool, rare, etc. We will give you advice and introduce you to the right products. I also feel that it is my role. We are always available to answer your questions, so please feel free to contact us. To be continued in Part 3. Commit Ginza Executive Advisor Commit Ginza Executive Advisor Tsuyoshi Kaneko