Thursday, March 12, 2009

Recession? What Recession?

Chinese Mining Millionaire Pays $7 million for a Patek Philippe watch & Rare champagne sets world record at HK wine auction (

According to Richman's Millionaire Club's General Management Agency, R S Management Limited "despite the doom and gloom we hear about all around us, there is still a lot of money around for a good value proposition. "

This is further confirmed by a recent article in the Hong Kong Standard where it was reported that a mainland Chinese Millionaire, who made his fortune in mining, successfully bid $7 million for a Patek Philippe watch. Here is the full story...

"Despite the doom and gloom of the current economy, a platinum watch donated by Patek Philippe sold for HK$7 million at the Tung Wah Charity Auction last week, exceeding pre-auction expectations. This was undoubtedly a timely help for charitable organizations suffering from dwindling donations amid these turbulent times.

The auction was conducted as a private party out of the media's glare. Bidding was furious, particularly before the price hit HK$4 million, with multiple bidders leap-frogging one another.

After the HK$4 million mark, it was mostly a neck-and-neck race between two bidders, one of whom was a proxy, while the other was reported to be a rich mainlander - who won the bidding.

This rich person was said to be from the northeast, who made a fortune in the mining business. The opponent, who remained anonymous, was said to be a great fan of Patek Philippe watches. He or she gladly bowed out after seeing the other contender make the generous bid of HK$7 million.

The elegant watch had a reserve price of HK$1 million, and was expected to fetch about HK$3 million. The fact that the timepiece eventually pulled in a staggering HK$7 million must have come as a very pleasant surprise for the charity that benefited. The high price also reflected the powerful draw of luxury watch auctions.

Members of the manufacturer's family also attended the auction, and met with the brand's local agent at a luncheon at the Peninsula.

At the gathering, the agent emphasized that Patek Philippe has no intentions of offering discounts to promote sales, despite the tough economic times, as the brand has always been treasured for its exceptional quality and service.

In the prevailing wind of cutthroat price reductions, it is heartening to see a brand that insists on competing on quality - not price." Says Siu Sai-Wo is chief editor of Sing Tao Daily.