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Gen makers bidding up value of own watches?


mbjoer

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This article is pretty old (2007), but the story it tells is never-the-less very interesting.

Basically it turns out that big name companies like Patek and Omega put their own watches to auction - only to buy them back at inflated prices. The purpose of which: To rig the whole market so as to create an artificial inflation in the second hand value of their watches.

I do wonder if this practice is still going on, and to what extent it is legal at all? I certainly doubt that it would be in the UK, but perhaps Switzerland is different.

http://online.wsj.com/article/SB119178753176051433.html?mod=hpp_us_pageone

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Does shill bidding still go on. Absolutely!

Is it legal - well it's a violation under UK and US law.

What amazed me reading this article, was the extent to which the participants seemed proud of their achievements. Guess that indicates that the practicewas legal in Switzerland.

Surely that cannot be the case today!! ?????

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I dunno, but after reading this article I feel as though if I were 30 years older and developed the same passion for watches at the same age I did now, my collection would be full of a lot more gens because they would have been soooo much cheaper (before these clowns figured out how to blow up prices)!

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Marketing Budgets, gotta love them.

It was probably cheaper to buy back the Omega than take out (buy) TV/Magazine spots and then get FREE advertising by way of "the news", bloggers, etc.

Absolutely, and because the comments come indirectly from the grass roots and not through dirext advertising from Patek and Omega themselves, it appears much more convincing. It's still quite unethical, but I doubt it's illegal.

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