Sep 22, 2009 10:00:15 AM

Specht Report

The U.S. market

by Ken Specht

Overall, business has been slow in the United States but we could see an increase going into the Fall season. Worldwide Swiss watch exports are substantially down for the first half of 2009. According to the Federation of the Swiss Watch Industry, the U.S. which is the second-largest Swiss watch market is down 43.3% or $629 million compared to Germany, which is off 13%. In 2008, Rolex spent $49.3 million in advertising according to TNS Media Intelligence, which tracks watchb advertising.

The new Rolex Steel and Gold Submariner Model #116613 with ceramic bezel in both blue and black are now at U.S. Rolex dealers. In the U.S. they are retailing for $10,400. The demand for Rolex Sea Dweller Deep Sea is up with not many in supply in the preowned market. The green anniversary Milgauss is in very high demand in the preowned market, however prices are well below retail. Speculators who bought these watches at well over suggested retail for an investment peice are completely upside down. Many lesser value wrist and pocket watches are being scrapped for gold near $1000 per troy oz. In fact, I did it myself last week.

Audemars Piguet offshore continue to be very hot and the jumbo sized Terminator III is highly sought after by collectors bringing in big money. Vintage gold filled wristwatches continue to be very soft with little demand and the same can be said for American Pocket Watches, particularly gold filled models.

Tagged Watch Business, Market Report, External Announcements