Csaba wrote:
This forum is very knowledgeable. I was purely asking you guys with more insight than what I have :). I have no overview of «other brands». I love Leica camera too and their prices also keep climbing every time they make something new that is predictably better. But we are also talking about luxury brands, so who knows where the borderline goes between necessary price increase and the increase caused by what they think they can set knowing/assuming people will buy their products anyway. «Increasing because we must» vs. «… because we can».
Back to economics 101, I watch several what we would call luxury brands. As you say, Leica, Rolex, Omega, B&O...and a few others.
Commenting on a watch forum yesterday, a forum member was complaining over the increases on an Omega Seamaster. something along the lines of....."2003, Omega was £1000, now its £4000" and if it followed the CPI and Swiss Franc etc....it should only be something around £1600.
That is correct of course but the CPI is there to make us little people feel as if we, the people are the cause of inflation. The CPI is a "select" basket of goods (all the ones getting cheaper and nothing important like power and housing).
The reality is if one was to look at M1 or M2 money supply (BoE, ECB or the Fed), between 2003 and 2021, M2 money has increase 350%. This explains a good deal of that Omega watch price rise.
In another context, I heard anecdotally, that 40% of all the US Dollars ever made were printed in 2021.
Wanna know why the price increases? Your GBP/EUR/USD etc....has been seriously deflated with excess and unbacked money printing. It not that the value of these (B&O) depreciating assets are increasing/inflating....its because your national currency is now worth chicken sh... and you need so much more of them to buy the same hard assets (whether a depreciating asset or the hard value material that was used to make them i.e. Aluminium, copper, oil, power, silicon etc...).
It is only a matter of time before more mainstream and larger brands start similar price hikes. Welkom Weimar2!