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Will The Rapidly Falling Price Of Gold Affect The Prices Of Gold Vintage Watches?

  1. MSNWatch Vintage Omega Aficionado Staff Member Apr 15, 2013

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    Love to hear your thoughts. My bottom line thought is yes for the less desirable ones and perhaps minimally or not at all for the desirable models.
     
  2. MMMD unaffiliated curmudgeonly absurdist & polyologist Apr 15, 2013

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    Let's hope so... for us buy-and-holders.

    You're probably right about less desirable vs. desirable models. This will probably just increase KStar's profit margin.
     
  3. MSNWatch Vintage Omega Aficionado Staff Member Apr 15, 2013

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    I think availability will go down as there will be less incentive to sell valuables including vintage watches at lower gold prices thus decreasing supply and perhaps help keep prices stable.

    There's also the psychological barrier - it was easier to justify spending big bucks for a gold heavy watch thinking that the inherent value of the gold will support the price but a bit harder I think this way if the gold price is lower.
     
  4. SpikiSpikester @ ΩF Staff Member Apr 15, 2013

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    Hard to disagree with any of that Mike. Apparently the chart analysts are saying there is further for it to fall for a while.

    Maybe we'll see a short term bout of selling as people try to milk the last out of it ?
     
  5. ulackfocus Apr 15, 2013

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    I think you nailed it on the head. Just like the sought after stainless models, it's not about the metal, it's about the desirability.
     
  6. sumerian Gold Constellation Magpie Apr 15, 2013

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    From what I know if anything the gold has to go back up ...any down price would be a temporary as Gold is not a brand or a trend
     
  7. Kringkily Omega Collector / Hunter Apr 15, 2013

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    Gold is just a sense of stability for financial markets. People need liquidity and it was already way over priced as it neared 1800 because of the fear. Our economy has stabilized from what I can see working in finance here in NYC. Things are going to be better IMO just takes a little more time to see it but I can see the money is already beginning to move quite a bit.
     
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  8. MSNWatch Vintage Omega Aficionado Staff Member Apr 15, 2013

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    Lots of people and corporations have money - that's not the problem. The main issue IMO is confidence and consistency (tax laws and regulatory structure) to get business working smoothly again.
     
  9. dsio Ash @ ΩF Staff Member Apr 15, 2013

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    The up side is we'll see fewer dials and movements appearing on eBay after some gorilla melted the cases. The value of watches really isn't tied to the precious metals market when it comes to collectible pieces, if the value of a watch is a significant amount higher than its scrap value then the weight becomes irrelevant and the quality of the piece is the determining factor.

    Unlike gold there's rarely a situation where watches are bought solely for investment reasons, there's always a lot of personal desire in them, and you'll never have a situation where people start dumping watches. That's the key difference between a scarce, functional collectible investment and bullion.

    When the price of gold starts to slide its easy to be "not that into" gold anymore. The likelihood of watch collectors to suddenly decide they're "not that into" watches is somewhat slim.
     
  10. dsio Ash @ ΩF Staff Member Apr 15, 2013

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    I'll add to this, I disagree with Desmond's assessment of Constellation Deluxes and Grand Luxes where he asserts that their value is based on gold weight + premium for collectibility. Gold weight isn't a factor once the premium for collect-ability is a significant amount more than gold weight.
     
  11. MMMD unaffiliated curmudgeonly absurdist & polyologist Apr 15, 2013

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    Agree. For the passionate collector, it's a bit like saying your champion St. Bernard is worth more than your champion Beagle because there's more to eat if it comes to that. :)
     
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  12. MSNWatch Vintage Omega Aficionado Staff Member Apr 15, 2013

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    Well I don't think sumerian is now suddenly going to bid less for those gold connies...
     
  13. dsio Ash @ ΩF Staff Member Apr 15, 2013

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    Very well put lol
     
  14. MMMD unaffiliated curmudgeonly absurdist & polyologist Apr 15, 2013

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    Indeed. Each night I pray he never discovers gold El Primeros and 135's.
     
  15. ulackfocus Apr 15, 2013

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    Hey now, let's not talk about eating dogs.

    Cats however...... fire up the grill! :D They're denizens of an evil realm sent to wreak havoc on Earth and I can prove it. Ever hear of a dogaclismic event? No, you haven't, have you? If an earthquake, flood, or other natural disaster happens nobody calls it a dogtastrophy. And in ancient times, where did the dead get buried? It wasn't in a dogacomb, was it.
     
  16. ulackfocus Apr 15, 2013

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    I should delete that post just on general principle. He can Google, you know. :eek: ( :p )
     
  17. MMMD unaffiliated curmudgeonly absurdist & polyologist Apr 15, 2013

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    Yeah, why does nobody seem to eat cats except ALF (there's a blast from your pop-culture past) and coyotes, which will eat anything? They must taste absolutely awful.
     
  18. X350 XJR Vintage Omega Aficionado Apr 15, 2013

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    Cat, did you say cat?

    IMG_1073.JPG
     
  19. seamonster Respectable Member Apr 15, 2013

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    Respectable Member MMMD

    Our respectable forum member sumerian will swoop on any desirable vintage-watches in 18k solid gold. There is nothing that can stop him. It is akin to his breakfast, lunch and dinner.

    Thank-you.
     
  20. kendrick Apr 15, 2013

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    As someone who works in the investment and financial community, the price of gold should be in steady decline, (parallel to that of the US's forecasted moderate -stagnated growth until 2020), for the foreseeable future pending a crises like the collapse of the Euro zone; which would trigger a rise in gold prices.

    That said, I doubt that desirable gold models will take a hit, as evidenced by the increasing demand for vintage, (specifically omega), watches. I also doubt that the moderate decline in gold prices will lead people to refrain from listing their watches for sale, holding out for a better price. If supply does decrease it will most likely be due to the fact that more people can afford to hold onto their heirlooms and collections, whereas they were forced to sell them off during the recession. Which would only serve to buoy prices for in-demand models.
     
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