Horolonomics

This is a short note on one of the more important recent innovations in horology. It pertains to the assortment, which is a collection of parts regulating the release of energy from a watch's mainspring. In detail, the assortment consists of the escape wheel, balance wheel, hairspring, anchor lever (usually) and pallet stones. I've now seen two similar, and major, innovations in this portion of a watch mechanism. I was initially confused about the similarities and differences between these two mechanisms, so I thought I would briefly outline them. Two watches represents the start of a potential trend, so this is probably worth doing. In 2017, Zenith announced the Defy Lab, a watch (pictured here with a black strap) featuring the wholesale replacement of a traditional assortment with an oscillating wafer of silicon (see picture). Top: Zenith Defy Inventor, Bottom Left: Zenith Lab,Zenith Bottom Right: Silicon Oscillator Credit: Zenith The price of this reference, ava

Fables are amazing, powerful things. They take on a life of their own. They can play the role of social glue, binding a community together in shared understanding and belief. Fables can become so convincing that a community might become confused and start to treat fables as facts. This is particularly likely when a fable is built around a skeleton of facts, as is the case of the "quartz crisis" fable. The facts in this fable are as follows: in 1969 Seiko released the first quartz watch (the Astron 35SQ). The quartz movement of the Seiko Astron. The fable hanging off these facts: due to the high accuracy and low cost of this innovation, the Swiss mechanical watch industry experienced a downward spiral. Numerous brands folded and innumerable jobs were lost. I've retold this fable myself, taking it as factual. This week, though, I started reading some scholarship on the events of the 1970s, the period over which quartz reputedly claimed most of its victims.

I've been an outspoken critic of flipper hate. A brief reminder: flipping is defined as a situation where a person buys a highly desirable watch at its retail price and then resells it, soon thereafter, at a higher price. As a result, the flipper earns a return on the timepiece. Flipping is the inevitable consequence of multiple decisions in watch markets. First is the fact that a manufacturer has set the retail price too low. As soon as this happens, rationing takes place: the demand for a watch model exceeds the available supply. Manufacturer contributions to flipping. As a result, some collectors are (possibly) left scrambling to get the watch. Are collectors responsible for setting the stage in this manner? So far, the answer is no. Brands set the retail price and decide how many watches they will manufacture. Now, let's turn to a collector who flips. Keep in mind that "flipping" is exactly why finance-types take a long position in an asset (f

I've shared this infographic a couple times on Instagram but I wanted to offer it here as well. It might, perhaps, present better. I also think it is so neat that I decided to share it in a few places online. I'm offering a video I made of a "racing bar chart" of manufacturer prices for 60 Rolex references over 64 years. I used an online list of AD pricing, adjusted for inflation, to generate this. I learned two things: first, Rolex seems to employ a "rabbit" pricing model. Infrequently, there are references (usually in precious metals) that are released that are an order of magnitude more expensive than what has come before. This seems to set the stage for subsequently rapid price increases for the more accessible references in the catalogue. I use the term "rabbit" pricing to describe this phenomenon because athletic races of different sorts will often hire a "rabbit." This is a racer who goes flat out at the start of the rac

I was on a recent Clubhouse chat which, nominally, was about today's Tag Heuer X Hodinkee release. To set the stage, these collaborators announced the Carrera 'Dato' Limited Edition For HODINKEE reference CBK221D.FC6479. The watch was available in a limited run of 250 examples and priced at $7,250. My use of past tense is not an error. The watch promptly sold out in three minutes and I'm sure, any day now, we'll see how much the flippers profit from the shortage on the secondary market. A prominant collector and artist was in the Clubhouse room and expressed the sentiment that, while reissues are obviously well-received by the market, the lack of design innovation is disappointing. I see his point and agree with it. There is a flourishing space of design innovation among a certain class of brands. Most notably, independent brands and microbrands are arguably at the forefront of design innovation. We also see design innovation among established brands su

Why does anyone buy a brand new Swiss watch from an authorized dealer? There are certain "obvious" answers, such as Rolex, Patek and their ilk, wherein the market price of a preowned watch is well above retail. If you buy at retail, the AD is effectively giving you money. But I'd like to look at some other brands, where the answer is not as obvious. Take, for example, the Longines Hydroconquest reference L37414966. The Longines Hydroconquest on the grey market. This is a 39mm automatic blue dialed dive watch with rotating bezel and date complication on a steel bracelet. The watch runs off an ETA 2892 based movement with a long 64 hour power reserve. The retail price for this timepiece is $1,275. The watch is available new, on the grey market (Jomashop), for $895, a 30% discount. Watchrecon finds this reference available from a private seller for $610, which is more than a 50% discount from the retail price. Carfax claims that a new car typically depreciates