While the sales of luxury watches may seem like a statistic that is some what removed from everyday life or even frivolous, in fact the sales of luxury goods such as Marc Jacobs watches have an important effect on the international economy, especially when they contain precious metals such as gold, which are strongly influenced by luxury goods production. Gold, as you doubtless already realised, is an important commodity in the global economy. While a very small proportion of the annual production is used for practical purposes in the tangible economy such as dental clinic Townsville appliances, certain computer and mobile phone components, and the like, the majority of gold being bought sold every day is purchased for the purposes of investment, processing into jewellery such as luxury watches, or perhaps both. From the year 2002, the world market price of gold per ounce experienced a remarkable run of growth, however this has now ended, with a twenty eight per cent decrease in price to one thousand, two hundred and four US dollars per troy ounce by 2013, alongside a thirty six per cent reduction in the price of silver.
A large part of this decline is being blamed on the slowing in the Chinese market for luxury goods such as luxury watches. Whereas previously a Diesel watch or something even more ostentatious would have been the must have status symbol for the young nouveaux riches of China, an official crack down on corruption has decreased the social regard shown to wealth worn on the wrist, with the media often using luxury watches as synecdoche for the wider issue of provincial corruption. While the appetite for luxury watches remains staggering in China, it has declined significantly from the levels of the past decade, flat lining Swiss watch exports and partially contributing to the slow down in demand for gold, a major input. Many savvy Chinese shoppers are now also buying luxury goods such as watches while on holiday abroad in Europe or elsewhere to escape high import duties, meaning that many luxury brand are reporting growth in their European divisions and contraction in their Chinese divisions, despite the relative strength of the respective economies of each area.
It’s not doom and gloom for every luxury watch maker selling in the Chinese domestic market, however. Burberry watches, for instance, have continued to see growth in sales in the Chinese market, even in the context of much weaker overall luxury goods sales overall. The lower cost of inputs for luxury watches such as gold and silver is unlikely to see a fall in prices, to the disappointment of bargain hunting consumers looking to splash out. In order to maintain prestige and the appearance of their products retaining value, many luxury goods labels will officially only ever move their prices in one direction with right dental care – and it’s definitely not down. Some bargains, however, can be found online for those who look.
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