zOwie Omega Discussion Forum

I had overlooked the obvious in looking at this data -- it is the exchange rate between US dollars and the Swiss franc. Changes in Omega prices over time are a function of what it costs them to make the watch -- in Swiss francs, versus what they have to sell the watch in the US to get the same number of Swiss francs and what inflation has done to prices in general.

During most of the vintage period that we consider, US-Swiss exchange rates were consistent at about $0.23 from 1937 to 1970. Then the cost of a Swiss franc began to rise. There were a few dips, but the cost has consistently risen to today's $0.85 or so.

Ignoring the effect of inflation, if a Speedmaster cost $230 in 1969 (not a correct figure, but easy math CHF1,000 X $0.23USD/CHF), even if the Swiss had kept the Swiss price constant, the US price would be $850 today (CHF 1,000 X $0.85USD/CHF), an over 3.5 times increase.

Add the effect of inflation in the US, which has been about 5.58 fold increase in prices since 1969, and you see why prices seem so much higher today. Between inflation and exchange rate changes, today's Speedy should be 20 times what it was in 1969! (A purist would observe that I should probably use Swiss inflation rates. Go suck an egg.)

Incidentally, a 145.012 Speedy was CHF 465 in 1967, or about US$107. Exchange rate increases would make that about $400 today. Add inflation (about 6.24 times since 1967) and that price increases to about $2,500.

Today's Speedy price is a bit more than that (about $3,300 or so?), so you can say Omega has raised prices by about 30% in addition to the effects of inflation and exchange rates and be accurate. But, they haven't raised prices as much as it appears without considering the exchange rate factor.

I hadn't noticed that exchange rate had changed that much . . . seems the US dollar is a lot weaker than it used to be . . . and we pay a lot more for our Swiss watches as a result.