Europe is quietly panicking and the UK looks towards Brexit with great trepidation, so why not take advantage and save money buying luxury watches as the British pound plunges?
If you’ve always wondered who it is that’s always making money in a recession, and thought, why can’t it be me? I may have a small but fruitful idea for you. As you may or may not know, or indeed care, but the UK is seeing a slump, to put it mildly, in the value of the GBP following the shocking Brexit vote. So what does that mean to you?
There is always an opportunity for anyone with a finger on the pulse, and as the pound recently hit a 31-year low against the US dollar, and a similar low against the euro opportunity knocks. I mean, look at the facts. The pound lost 3% of its value in a single day, and although this doesn’t happen to genuine, robust and stable currencies, the shocking reality is the pound is suffering like no other major currency.
Regardless of the reasons behind the devaluing of currency, whoever it belongs to, the situation remains that every situation like this has a winner and a loser. You may think I’m going to ask you to buy currencies or do some clever deal in the money market, but no, don’t worry. This is a Watch site and that’s where I’m going with this one.
I’m not interested in playing the markets. It’s complex and you need to have enough money to loose before you can start thinking about winning. So, no, please steer clear unless you have experience.
I do, on the other hand, have a safe bet for you, and it’s all based on the winner/loser scenario I mentioned early. The good news is you’re not really betting against something that might or might not happen, you’re not betting at all. You’re taking advantage of an event that’s already happened leaving a visible trail of devastation. The devastation is the dirt cheap GBP against the Dollar. You already know the value of both currencies, so let’s make some money.
The Watch Market
The watch market is quite varied with certain niches that appear to all sort of different people. Collectibles like Vintage Watches, Dive Watches, Aviation Watches. Then you have Watches with all sorts of complications, Tourbillions, Chronographs, Moon phases, the list is long. But it doesn’t matter how long the list is because you are either looking for a watch you can afford or a watch that YOU like. You’re still going to make money if you do your homework.
Think of the brands you know well. Do you know them because you like them or because they are famous for being popular with those that can afford them? My bet is you know them for both those reasons and it’s part of an aspirational lifestyle brand. You can look at the fashion houses, or the Swiss brands, it doesn’t matter because you have currency on your side.
The strength of your position will always be enhanced if you stick to brands that are evergreen and always in demand if possible. Swiss brands such as Patek Philippe, Rolex, Jaeger-LeCoultre, IWC Schauffhausen, and Vacheron Constantin would be a major jewel in your crown if you managed to secure one, but don’t sweat the name just yet.
Right now I just want you to get used to the idea of finding a top quality Swiss brand that ‘s priced in pounds. That’s the secret right now. Simple right?
At the time of writing the GBP is around $1.22, luxury watches being sold in London and priced in pounds can be had at a steep discount to their US dollar prices across the ocean. I’m not going to bog you down with examples because the internet is right in front of you, so I invite you to keep your eyes open for bargains in GBP. If you find something you like, check it out, do the math and see it it’s worth the investment.
The Take Away
Buying a watch in GBP, taking into account exchange rates and profit margins, you should also factor in the VAT (Value added tax) refund currently running at 20%. With that in mind, you can start thinking about how to leverage your assets. That is to say, how will you make money? Will you sit on the timepiece and let the value grow? Will you keep it as a personal possession? How about selling it on an auction site?
Although this might be a little scary, the main barriers have been reduced for you. The purchase and sale are taken care of online, so you may not even need to take possession of the product if you sell it before you buy it. I know that is an advanced marketing model, but I’m just trying to illustrate to possibilities. It’s really technology that has made it possible for everyone, not just the traders to take advantage of the markets.
Thanks to technology there are more opportunities than ever before and they are available to everyone. The only limitation is your imagination, and possibly your cash flow.
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