Community Stories

He Got Rich Buying and Selling Luxury Watches. Was It a Ponzi Scheme?

Larry S
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Ahh those crazy Covid years when the watch world lost its dammed mind. Just like all bubbles in history, they pop eventually. In this case I also blame the producers who permitted flipping.
 
Evitzee
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Just a bunch of wannabe, self proclaimed watch experts, i.e., suckers, getting played. Happens in all businesses all the time.
 
JimInOz
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Jeez, what a bunch of idiots. And we think a $100 newbie tax is painful, but a $100K?
 
Porteroso
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Some sort of investment fund where watches are the security. You pay a million, for 10 watches, you get them, keep them, and can resell later or trade in, cashing out by selling the watches to the "fund," at a profit over time.

I'm not sure it's fraud, or if he just spent the money he needed to have to buy the watches. Either way, he failed to deliver watches and failed to give people their cash out money.
 
gatorcpa
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This reminds me of something a wiser person than myself once said,

“Bulls and bears make money, but hogs get slaughtered.”

gatorcpa
 
Vinz Clortho
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When it walks like a duck, and quacks like a duck...

Sounds like it started as an idea for a new unorthodox business fund, some would say a quasi con depending on the condition of the watches. At least there was tangible assets in watches so investors weren't out everything, but big difference in "investment grade" watches. At least it wasn't like some of the other ponzi schemes (Timepiece Gentleman comes to mind)

Always say watches are never an asset to park money into. They are shiny luxury things which lose value over time. Beautiful shiny things which talk directly to our monkey brains.

There's only a very small percentage of rare and sought after pieces which increase in value and the time.
 
dsio
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I don’t even feel that bad for the whole situation, I’d rather watches (and cars) be things you can just wear and enjoy rather than have them be a vehicle for investment or money laundering.

It was more fun before so many models were priced out, and I still find the sub-2k, and sub-1k end of the market to where I enjoy the watches the most after all this time
 
hen
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They got scammed because they did not how to use Google?


"Perriard that he had committed to buy the watch “at a ridiculous price” - 150,000 Swiss francs, or $191,000.

“You have paid that money? You’re crazy or what?” Mr. Perriard responded, according to a recording of the conversation provided by Dr. Daruwalla.

Mr. Perriard later told Dr. Daruwalla that he could sell the same watch to him for 20,000 Swiss francs, according to messages viewed by The Times. "
 
Radius321
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I have no problem for individuals using collectables as part of their own personal wealth portfolio ie, I allocate a certain amount of my networth to this hobby, but there just seems to be a whole bunch of frankly grifters who have been trying to make collectables a form of alternative asset class and trying to institutionalise it, retail clients will just get burnt in the end almost everytime
 
ibis888
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I am glad that so many of these "watches are a great way to make money" type people have left the space. I know it didn't apply to Speedmaster as much but the whole thing is just so off-putting. Particularly with new watches.
 
T
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what about the hype with omega x swatch . These were changing hands for ridiculous amounts of money but in the end it was a game of financial musical chairs...
 
Radius321
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T Tu13alcane
what about the hype with omega x swatch . These were changing hands for ridiculous amounts of money but in the end it was a game of financial musical chairs...
yeah im sure the guys who were standing in line making a $100 off a moonswatch all are on their mega yachts now.....
 
Felix_La_PuBelle
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I was about to say “oh yeah this guy” then see in the article it’s a different guy. There are half a dozen stories same as this coming out of the Covid crash.
 
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