There’s a huge opportunity in the world of watches to understand how to use them as currency more than anything else to combat the devaluing of the dollar
Now contrary to what most believe, we talk about watches being a hedge against inflation or changes but I think something that is really important to understand is it’s also an opportunity to just not have the dollar devalue itself while it sits in your account.
Think about it this way. It’s simple economics. If you have $100k sitting in the bank just in cash versus you have let’s say a watch worth $100k or a car or a house.
Let’s assume that the cost of living goes up. Well that asset becomes worth more money. But the money sitting in the bank doesn’t become worth more. It actually gets devalued because it can buy less.
So having money in assets at significant parts of your life can help you ensure that you’re riding out these events making sure your basis in things goes up like the rest of the world rather than being the consumer who’s always being priced out of their goals and dreams
We saw this play out in the pandemic. People who didn’t hold assets lost significant purchasing power because of inflation.
And we’re seeing this play out again now with tariffs.
Are we going to see what happened with covid happen again?
I don’t think we’re going to see watches go up $100k overnight like we did during covid. There was a lot more money floating in the market with middle consumers than there is now. But I think there’s a huge opportunity, and I mean huge, to just generally understand the same principles of holding assets that we learned from covid.
This cycle is somewhat starting again. And this time you need to be prepared so you’re protecting your money.