Rich people have too much money so they spend it on expensive shit without a care on the price. Up and comers are a different breed. They want to be seen as successful .
It projects status and success which gives you respect and credibility. A luxury car for example is only seen when you drive it. A balling watch goes where you are. I would argue that an expensive watch is a better luxury item. Another reason is that luxury watches retain their value well and have a higher chance of appreciating than a car. Lastly a luxury watch is a timeless piece.
Of course there are others that genuinely enjoy it. Which I don’t understand
I’ve never understood people who say “jewelry and watches hold their value. And sometimes they appreciate!”. While I guess it’s technically true, you do realize that the markup on these items is around 400%, right? So a $20,000 watch is really only “worth” about $5,000? Yes, it will definitely hold that $5,000 value very well.
Not sure on markups but I think it’s brand specific. It’s defjnitely not much much for the most popular Rolex brands like the submariner. For a used luxury watch the markup is close to nothing and it appreciates.
its the same point. but anyways, if you want something with similarities, art is a good example. the cost of the materials to put it together is way below the price people are willing to pay for. also whats interesting is high end art have been argued to appreciate as fast as the stock market.
I was into watches when I was working for the man. When I went out on my own I had no desire to wear one. It’s definitely used as a signal for BSDness and I think a lot of it has to do with peer pressure and the hierarchical nature of corporate life. Whether or not you get sucked in mainly has to do with your office environment imo.