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Discussion Starter · #1 ·
Today Swiss national bank unpegged CHF from EUR, reflecting the weakening of EUR vs USD.

Well...

Guess what this will do for the EUR prices of Steinhart, and the whole of the watch industry... Makes me happy I bagged mine at 350 still.
 

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but I am sure that Steinhart has made future contracts with prices already locked for several years. However, that doesn't mean that he might still increase the price anyway;-)
 

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Discussion Starter · #3 · (Edited)
but I am sure that Steinhart has made future contracts with prices already locked for several years. However, that doesn't mean that he might still increase the price anyway;-)
Ah... I dont think so. You might assume this but I know that these contracts can get very expensive. In fact, if they did hedge some costs for metal parts they might be taking a loss in fact, becasue metal prices are falling! So dont be so sure they (all watch makers) managed to hedge.

Sure, depends on his cost base and how big a share is in CHF. :) Just saying the whole move is gonna really hurt their watch industry. They will need to raise prices or be ok with losing 20% of their profitability, roughly, assuming a full on EURO sales and full CHF costs.

Their costs are in USD/CHF probably. Metal prices are down - so that's good, but sales are in EUR, and some of costs must be in CHF for movements etc.

One thing you can BET is Rolex is gonna hike their prices a lot again. :) USed rollies from Germany will no doubt follow as well.
 

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but I am sure that Steinhart has made future contracts with prices already locked for several years.
how do you know???!


in a way. our current Watches have increased in Value , but our Future Purchases will Cost us more
.
 

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Re; the title of this thread. I've always been watching the currency market. The CDN $ used to be very strong against the EURO and made Steinhart watches a real bargain. Then the EURO increased and the CDN $ decreased and now this latest announcement is going to put Steinhart further out of my reach. I love my Steinharts but fear I'll now have to look elsewhere. Lately I've found myself looking at the sales forum or the new micro brand start-ups that are using Japanese auto movements.
 

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Re; the title of this thread. I've always been watching the currency market. The CDN $ used to be very strong against the EURO and made Steinhart watches a real bargain. Then the EURO increased and the CDN $ decreased and now this latest announcement is going to put Steinhart further out of my reach. I love my Steinharts but fear I'll now have to look elsewhere. Lately I've found myself looking at the sales forum or the new micro brand start-ups that are using Japanese auto movements.
Over the last few months though the EUR has fallen quite a bit against the Canadian dollar and it fell more with the Swiss announcement:EURCAD=X Interactive Stock Chart | Yahoo! Inc. Stock - Yahoo! Finance. For what it's worth, many folks are predicting that the euro will continue to fall as the European Central Bank is expected to begin quantitative easing soon, which all other things being equal would further lower the EUR/CAD exchange rate. Good news for you if that plays out! (And likely for US Steinhart fans as well).

Edit: unless of course Steinhart increases their prices due to the stronger franc...
 

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Discussion Starter · #8 ·
Over the last few months though the EUR has fallen quite a bit against the Canadian dollar and it fell more with the Swiss announcement:EURCAD=X Interactive Stock Chart | Yahoo! Inc. Stock - Yahoo! Finance. For what it's worth, many folks are predicting that the euro will continue to fall as the European Central Bank is expected to begin quantitative easing soon, which all other things being equal would further lower the EUR/CAD exchange rate. Good news for you if that plays out! (And likely for US Steinhart fans as well).

Edit: unless of course Steinhart increases their prices due to the stronger franc...
EUR will go below USD (and on same magnituted vs CAD). You gonna have next 10 years worth of strong USD, until Europe prints its way out of its misery no growth situation like US did with its QE. Expect 0.9 EUR to 1USD in few months or at least by year end. Just sat through a huge presentation by GS, plus seeing notes from others... if consensus is catching up, it means things are gonna unravel at much faster pace. Next week QE news are coming, hence the unhitching by SNB I think...
 

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steinhart will suffer from the chf but will benefit forum the low euro. overall they are better positioned than the Swiss brands.
 

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Pardon my U.S. perspective: the Euro/USD is the lowest it has been in almost 20 yrs(maybe got carried away, 11 yrs). Great for US buyers, but the Swiss move does make me wonder if Steinhart will adjust prices in the near future. In other words, this is likely the best deal in decades to for Steinharts!
 

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steinhart will suffer from the chf but will benefit forum the low euro. overall they are better positioned than the Swiss brands.
I 2nd with this...
Yes... STEINHART popularity will get a boost with the current euro's low value x-rates against other currencies, it may get more attention from other entry-makes buyers around the globe as most of those big group Swiss Labels produce will be much expensive to own eventually...

An example... the recent release in Singapore, by TISSOT... priced close to 650eu, irregardless of which model in the picture.


With that price, STEINHART offers other better makes at that price...

However, such perfect picture will eventually be challenged by the rising costs in Swiss Labour if CHF continues to go north. After all, STEINHART watches are dependent on the Swiss contractor to produce. Not to mention, the additional costs on Swiss parts and components of STEINHART's products...

My wish? Well... hoping that the sudden rise of the CHF is just temporary, or just a technical jump. It's better if CHF values itself against USD 1:1...
 

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The Euro has fallen quite a bit against the USD. I'm very tempted to get a second Steinhart (if needed I can flip my first one) - looking at an Ocean One Vintage - unfortunately, I see a lot of rotor power reserve related complaints on this one on the forum. Maybe I'll go for a chrono instead.
 

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Discussion Starter · #18 ·
Didnt take long. Well, hope you guys go ahead and get yourself a nice Steiny before the hike.

At the same time, I think for their US clients and UK clients the jump wont matter at all. Only Europeans are the ones who suffer.
 
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