My take on the spike in watch prices is the strong demand for luxury watches in Asia, particularly large, emerging economies like China, HK and Singapore with a burgeoning middle- and upper-class. For many in Asia, a Rolex is a critical status symbol. Any business person worth half their salt in Singapore, HK, etc. wouldn't be seen wearing anything less costly than a Rolex, one upmanship with ALS, PP, AP, VC, etc. denoting success of senior execs, etc.