Swiss watches face fading

Swiss watches are globally renowned for their craftsmanship value. Due to their scarcity in the market, they possess certain financial attributes. During the pandemic, the Federal Reserve's massive liquidity injection made Swiss watches part of the dollar liquidity. Holding Swiss watches can, to some extent, hedge against the Fed's QE.

However, Swiss watches currently face two major challenges: 1. Overproduction. Or rather, the need to sell products for profit keeps production levels high, thereby continuously undermining their scarcity; 2. The escalating sophistication of counterfeit products. Just as legal tender can only be printed by central banks, counterfeit products damage the credibility of genuine items.

The world's perception of scarcity is constantly evolving. Among the four precious metals, gold and silver clearly enjoy higher recognition; the gap between Bitcoin and Ethereum continues to widen. Only when recognized does scarcity hold value. Currently, it appears that the scarcity of Swiss watches will continue to erode.

Of course, if the global economy takes off again one day and the Fed resumes QE, top-tier, highly liquid Swiss watches will still be sought after. But the peak recognition of 'scarcity' has gradually faded.

$Hermès(HESAY.US) $Louis Vuitton(LVMUY.US) $Richemont(CFRUY.US)