Euro's, Dollars and Panerai......

Every day we see the Euro going up and the Dollar going down.

As I write this the USD is $1.46 for each Euro. An all time high (err low?) We know that European companies base their revenue on their currency but to raise prices to lessen the shortfall also reduces the amount of product sold.

Mercedes has absorbed the price differential to a certain degree. Companies like Nestle, Volkswagen, Siemens, Ing and so many more have had a rough 2006/7. They may find revenue has gone up but costs have increased more rapidly.

Luxury goods conglomerates like Richmont, Louis Vuitton Moet Hennesey can raise prices only so much without affecting the amount of goods they can move. Their production machines may be able to turn out more product than the market place can absorb.

Funneling on down to the watch market that we Enthusiasts enjoy every day changes the paradigm for so many as their watches become out of reach "OOR" with each and every price increase. Science says that water finds its own level. What axiom fit the watch market if the economy of many nations slows down and discretionary income decreases dramatically?

Let's hope that every thing settles down. That the housing market and mortgage problems turn around and we again find ourselves pursuing the next purchase of our beloved watches.