Down the Rabbit Hole of Gold

 

Over the past few days, a number of subscribers have reached out wanting to sell their gold watches. With gold hitting an all-time high, this is hardly a surprise. In fact, I'll probably be doing the same myself in the near future. First of all, we're talking about scrap gold, not your shiny Rolex Presidents. Scrap gold comes from broken watches, bracelets, links, and jewellery - sent to a refiner to be melted down and reused. And yes, now is the perfect time to turn junk into gold. However, the process of turning scrap into bullion is a bit tricky, to say the least. Having gone through this journey a number of times, I speak from experience. Basically, you have two options: Sell your scrap to businesses that buy scrap gold, or deal directly with a refinery. In the first case, the easiest way is to find a local buyer online, make an appointment, and show up with your scrap. The problem? They'll rip you off. You won't get anywhere near what an online gold scrap calculator might estimate. The price they pay is significantly lower than the gold spot price. They'll also complain about all sorts of things - purity, carat, content - all being "unknown" or "too risky." But you'll walk away with cash in hand. Dealing with refiners directly comes with its own challenges. The most obvious one: as wholesale businesses, they're primarily interested in large quantities of scrap metal. One broken watch and a couple of earrings aren't worth their trouble. There are also numerous "fixed costs" associated with refining. The assay fee - a charge to test and determine the purity of your gold - can be either a flat rate or a percentage of the total value. Some refineries waive assay fees for large quantities, while others charge for incoming weight, retention, and handling, in addition to the assay itself. Then there's the refining time. It can take weeks to get your 24K gold back. But what really makes me nervous is the downright dodginess of the process. You're expected to place complete trust in the refiner, while having no leverage or oversight whatsoever. You leave your scrap - and whatever comes out of it is what it is. For example, the common procedure is to have your scrap pre-sorted (9K, 14K, 18K, 24K), weighed, and recorded, then weighed again at the refinery. However, the last time I handed over my metal, I was simply asked to leave it behind - to be weighed later - because, apparently, "the scales weren't working." And I did. There's no point arguing with a refiner. It's a take-it-or-leave-it deal. The upside is that, at the end of the refining process, you'll receive a lump of pure 24K gold (plus some silver), and you'll have the option to sell it on the spot at the actual market rate, have it stored, or take physical possession. You'll also receive a proper receipt. To be fair, gold merchants and refiners are constant targets for forgers and crooks, so their lives aren't easy either. Dealing directly with them requires experience - and strong nerves. And yes, they're all the same. Of course, if you have an 18K gold watch you'd like to sell for scrap, or any fine modern or vintage piece similar to our current stock, feel free to reach out. I'll be happy to make you an offer upon inspection.

But then again, selling any watch for its metal value feels almost sacrilegious. Take, for instance, this 1920s gold pocket watch - broken, missing parts, far beyond restoration. And yet, on its weary case back, a tender engraving remains: two birds hovering over a nest, guarding a single egg. The message could not be more heartfelt - a young family, full of hope, awaiting new life. One can almost imagine it: a father-in-law's gift, his blessing engraved in gold. So, to scrap it, or not? You tell me.

Locked in time

 

As I type this, in front of me is a Rebelde Titanium watch. A timepiece which represents a significant milestone on the road to independent watchmaking. The first titanium watch was assembled on the 14th of March 2018 and was immediately nicknamed ‘Tito’. I still remember that moment as if it was yesterday: a huge sense of relief that the project was a success, that all the components manufactured by numerous overseas suppliers are not just on my bench, but that they are manufactured to strict tolerances, and they fit perfectly, working together in harmony. TiD was my first attempt to ‘deal’ with titanium. I remember months of correspondence with Japanese titanium case makers, asking dozens and dozens of questions – to which I had no answer. What titanium grade do you require? What finishes? Tolerances? Water resistance of each individual surface; the material properties of Teflon and rubber seals; their expansion properties under pressure and temperature. What type of coating, polish, scratch resistance level? Of course, I knew what I wanted, but I had no technical manufacturing knowledge to communicate my requirements to the Japanese in the way they expected. TiD was not just another white label watch; it was a genuine ‘designed and assembled in Australia’ project, started from scratch. When it comes to the mechanism, Tito took the Rebelde brand to another level. Tanya and I travelled to Switzerland in the search for a movement maker who could offer the highest possible finishes and decoration for the trustworthy Unitas 6497. And we found it, tucked away in an unassuming wooden farm house in the heart of Canton of Bienne, was a movement design studio run by a husband and wife. We clicked instantly. “How many movements do you need”, they asked. “5,000? 10,000?” We needed one hundred. “We can do 100. No problem”. Of course, such a tiny production run came at a significant cost, but Tanya and I replied with ‘no problem’ too. It took the movement maker almost a year to deliver one of the most beautiful honey coloured movements I’ve ever seen, finished with a circular cote de Genève. The solid 18K balance wheel was mesmerizing, perfectly balanced. The kind of movement you find in 1970s Omega watches, built in that very same village 60 years ago. The small production run of only 50 TiD watches cost far more than we ever expected, and definitely more than we could afford, but the sacrifice was well worth it. We were proud to offer a NH watch which was as good as any Swiss watch, at a lower price. Yes, completely designed, assembled and adjusted in Australia. The original release price in 2018 was $3,500. Most of the watches were sold straight away, except for three, which were then priced at $4,000. Since then we’ve moved onto other projects, introducing new models: 45mm was simply too large for many of our customers. The last three watches are firmly locked in time. Today, the production cost of 50 titanium cases would be tens of thousands of dollars. The mechanism of this finish – even more. Actually, the Swiss watch studio which helped us in production is no longer in business. For any small independent makers, life is always on the edge; being exceptionally good means very little in a turbulent world driven by relentless advertising and branding. I am very proud of TiD Tito. I consider myself lucky that it bears my name on the dial. Completing a project of this magnitude in a very short period of time, on a limited budget was only possible thanks to your support; to Australian watch lovers who trusted us and supported our rebellion. If you wish to invest in a watch which upholds all the core values of a true independent brand, then TiD is definitely the way to go. The price is $4,000. If you wish to add a hand made Australian watch box, then please add $275. Delivery is free of charge. Each watch comes with a five year guarantee and a life time of gratitude for your support.

Curl Curl Orange

 

What a sweet little victory: based on your feedback, and consequently, the number of orders, the orange Curl Curl is on top of the 'wanted' list. I knew it. The moment the first guilloche orange dial was assembled, it became obvious that it will be a hit. It is really hard to put a finger on it, but the burnt orange dials are rarely seen in horology. And to produce such a vibrant, warm colour in Titanium is really a peak in our manufacturing capabilities. I am extremely proud to have my name on that dial, an honour and a privilege indeed. Consequently, and looking entirely from a business perspective, we are left with two options: to make as many orange Curl Curl watches as we can - or, to make as little as possible. This morning, the decision has been made: to ‘lock it in time'. Choosing between volume production (which generates revenue) and rarity, which means exclusivity to our ambassadors, we are opting for the latter. The small batch of ten orange Curl Curl will be the first one to be completed. Actually, as I type this, the assembly is already in progress: we want our ambassadors to receive their watches before Christmas. We want them to be special!

Next year, mid-December, a small batch of orange Curl Curl will be released again. This time, it will be only nine watches on offer. And so on for years to come – eight in 2025, seven in 2026, etc. In 2032 there will be just one orange! The total production for the next ten years will be 55 watches. And that will be it. Our message is simple: we are here to stay, and we are not in a hurry. Our time is yet to come. With two orange to be delivered to the US, one to Europe, one kept on display, and four already allocated to Australian collectors, what would be the chance that you will ever meet in person another Curl Curl ambassador wearing the same watch? Today, we are closing the 2023 batch with only two Curl Curl orange still available for Christmas delivery.   Thank you for your support.

Curl Curl Orange: automatic movement, 40mm case diameter, titanium guilloche dial and hands, manufactured in Australia. Price: $7,900. 2023 production batch of 10 watches.

The frosted meteorite

It only took an hour or so for about 20 subscribers to figure out not just the brand but the exact model of my new watch. You guys are just crazy. Serious respect, beyond humbling. Of course, this morning I flexed the watch to Josh. "You look like a 40 year old schoolboy" he said. I pretended I didn't hear the insult. "I'm loving it! Carbon case, made by people we've met in Switzerland!" "No it's not. Those cases are machined, where your case is made of sintered carbon flakes, moulded under high pressure. Not a bad technology, invented and marketed by Hublot who released a $100K watch in that very case. Unfortunately a failed project - because literally the next day every case maker in China was making the exact watch. So the carbon case is not a big deal, it is the quality of the mould that makes the difference. By the way, we can make a mould ourselves if we want to."  I wasn’t about to give up. "And the people we've met in Switzerland? Do they do the same?" "Again, no. Their carbon is mixed with resin, then compressed, then machined. Time consuming, high-tech and expensive too." "Can you do me a favour, pen this down so I can share it in the newsletter?"  He was already at the door: “I'm busy making Curl Curls, do it yourself." I've created a monster. [To be continued...]

An unexpected act of kindness that almost brought a tear to my eye

As strange as it sounds I have never received a watch as a gift except once. A while ago after the watch night talk a visitor to our workshop pulled out a Russian watch in a cardboard box. "This one is for you Nick. Thank you for a wonderful night". I had the watch for a few years and ended up regifting it, which I believe is an appropriate thing to do.  Literally half an hour ago, Trent, a sales representative for Mondaine watches came to the office. He brought with him a bunch of the latest catalogues and we discussed a new order. Then, out of the blue, he showed me a watch from another brand - a sample that had just arrived to Australia. A limited edition carbon fibre body sports piece on a cherry red rubber strap. "Oh, this is an amazing watch" I said. "I am sure many of your subscribers would love it" he said.  I said: "no I would love it for myself. We actually just got back from Switzerland and I met the manufacturers who make those cases. Carbon fibre watches are really a big hit in France and Switzerland. It's such an understated material and it looks like frozen meteorite. And before I can recommend it to our subscribers I would love to wear it myself for a month. Please invoice it and send one whenever it becomes available."  On that note Trent simple handed over the watch. "You can have it Nick. It's a present." I really don't know what to say, I am absolutely blown away with Trent's generosity. The reason why this newsletter is delayed is because I couldn't help myself but to play with the watch. I'm not going to disclose the brand or the model but it is a Swiss automatic watch. 47mm case size, 52mm including crown. I will keep you posted over the next few weeks but if you stop by you will see me wearing it.

Is an automatic watch the right watch for you?

(Or would you be better off with a battery operated one?) Battery operated watches have a number of benefits over a mechanical self-winding (automatic) watch. Without exception, quartz watches keep much better time, they are more robust, and easier to repair. Actually, from a practical perspective, and from the view of a watch owner who needs a watch just to tell time, nothing beats an inexpensive quartz watch. So why would anyone invest in an expensive mechanical watch which is a rather average time keeper, complex to service and sensitive to shock and magnetic field?  Unfortunately I have no answer to this question. Some questions are simply impossible to answer in a logical, meaningful way. The real question is this: how do you know if an automatic watch would be a good choice for you? You don't, unless you actually try.  Yes, it is tempting to go online and Google for a 'cheap automatic watch’. Unfortunately, very soon, you will find out that cheap automatic watches are just that - either cheap and nasty, or worn out, or in need of repair. Waste of time and waste of money. I suggest you save your time and do the right thing: invest in a brand new automatic watch. There are plenty of choices, and as said before, nothing beats a brand new watch. However, if you are busy, and your time is precious, and you have no desire to search thousands of watches online from thousands of sellers, I propose that you put your trust in me. I have been handling watches for decades, have sold tens of thousands, and I am more than confident to recommend an affordable, well made, automatic watch. Put it this way: if a watch of my choice does not meet your requirement and expectations, then you are simply a person better suited with a battery operated timepiece. Why am I so confident?  1. Money is important. You won't get a Swiss Made automatic watch of a decent quality for less than $999. 2. Design is important. You want a watch of timeless design that can be worn and enjoyed, but also passed on to the next generation. 3. Servicing is important: a watch has to be robust, reliable and above all, repairable. 4. Choice of straps: again, very important. There is nothing more annoying than to find out in two years time that a strap for your watch is no longer available, or that it costs more than the watch itself. A watch strap of an ergonomic design and standard lugs width is what you want. Any leather, any colour, any thickness - endless choices. 5. Guarantee on performance is crucial. Not 3 months or 12 months, not even 3 years. You trust my choice, and I'll be happy to offer a 5 years guarantee on performance! So here it is: a Swiss Mondaine Railway Watch, 41mm case size, automatic, robust, reliable, repairable, water resistant with 20mm lugs width! List price $1,099. Yours for just $999.  Buy it, wear it for a few months, and if you are not happy with the performance of an automatic watch, then there is really no reason to look for an Omega or a Rolex. It's simple as that, risk free exercise. There is one more thing I must stress out: the price of $999 for this watch is simply amazing. I only have a few watches in stock, and the next order is not coming in any time soon. When the new batch arrives, the price won't be the same. Be quick, take advantage of this generous offer.

Fitted on a Hirsch Artisan Leather strap ($70)

Hirsh red stitching strap ($50)

Easy-release spring bars. No tools required to change strap.

Update from the workshop:

As we've mentioned previously, we will be entering the Louis Vuitton competition for independent watchmakers. There are just under 2 months left before the deadline closes, so we are working full steam ahead to finish up the watch that we will be entering into the competition! Currently Declan (our Canadian CNC machinist) is working on the case for that watch. Cases are not an easy part to make, but Declan is almost completely autonomously handling the project. Here are a few pictures of the case in-progress! Josh

We are here to serve you

 

With a number of new subscribers recently joining this mailing list, it is time for a friendly reminder of what we stand for and how we are set up to serve you. 1. No cash We have been a cashless business for more than two years. Direct bank deposit is our main form of payment, and when mutually beneficial, we accept credit cards. Equally, if you have a watch to sell, you will be paid into your bank account. Strictly no cash. 2. No discount The price advertised is the best price. Please don't ask for a discount: we offer premium quality watches which are all priced correctly: to sell. 3. No one is exempt from paying GST Asking to have GST circumvented, removed or avoided would result in an IMMEDIATE REQUEST TO LEAVE THE PREMISES. While many other watch dealers are more than happy to deal in cash to avoid goods and services tax, our policy is clear: no one is exempt from paying tax so don't even joke about it. 4. Your time is precious. So is ours We are not a classic retail shop and we are not set up for browsing. We don't keep any stock on the premises- our business is strictly 'by appointment only'. Time is extremely precious so please limit your visit to 15 minutes or less. Here is an important statistical detail: in our experience of face to face dealing, 90% of watches are sold in less than 3 minutes. 5. First in, best dressed Premium quality stock is hard to find and easy to sell. We are seeing an unprecedented demand for fine watches so almost every watch on offer attracts multiple buyers. First in, best dressed is a fair policy giving everyone an equal chance to snatch a deal. For that reason, we cannot hold watches, or accept partial payment or holding deposit. The buying process is simple: once the payment terms are understood and accepted, and we shake hands over the phone or via email, an invoice will be issued. Once you pay the full amount, the watch is yours. Obviously, failing to pay the invoice within the agreed time means that we will offer the watch to the next buyer.  We are here to serve you.

Why doesn't consignment work?

 

We need to talk about a serious matter today. It's called business. If you allow a couple of minutes to familiarise yourself with the core principles, you will have a better understanding of the matter; consequently, you will benefit from the insider knowledge I am happy to share. 1. There are three parties involved in the business of second hand watch dealings. The seller, dealer, and the buyer. 2. A single, one-off transaction could be structured in such a way that it is beneficial to any party. However, multiple transactions with multiple parties can only take place if every party gets what they want, repeatedly. 3. Second hand dealing is a complex process. 4. Expectations and requirements: Seller They are a smart and mature seller who understands two key issues: the security of the transaction and the value of time. A smart seller is not going to waste their precious time dealing with time wasters, nor are they willing to risk their life inviting strangers into their home. Disposing of a large collection of any kind is a serious challenge.  5. Expectations and requirements: Buyer A sophisticated buyer has multiple requirements, coupled with very high expectations. The top priority is price. The price has to be right. The right price is hard to define, but 20-30% below retail for near mint stock is 'about right'. Overall condition of the watch, security of transaction, guarantee on performance, insured delivery and post sale servicing and maintenance are some of the other crucially important requirements. Meeting and exceeding those expectations is essential for repeat business.  6. Dealer's role: The dealer's role is to generate profit, grow the business, and keep both seller and buyer happy.  Selling is easy. Finding desirable stock at the right price is extremely difficult. Dealers are not gamblers, they are risk averse. They are not watch collectors either, they buy with the brain, not the heart. A dealer's greatest asset is their reputation. 7. What is a consignment? Consignments are deals where the seller sells the watch through a dealer. The consignor (watch owner) maintains the rights to the watch until the watch is sold. The selling price is set by the owner, while the risk of transaction is on the dealer. After the sale, the dealer is paid a fixed amount by the owner. While in theory, a consignment sale may look mutually beneficial, in reality, such a form of selling only benefits one party. Since the watch owner is not in a hurry to dispose of the watch, and retains full control of the sale, the asking price is almost always set too high. Practically, the dealer has no say nor authority to lower the price; so the watch remains unsold for a long period of time. On the other hand, the dealer bears all the responsibility and liability for the watch, including the post sale guarantee. The watch is eventually sold to a buyer who is a novice watch enthusiast, who sooner or later finds that they have been ripped off, paying above market price. Such a buyer would never return, and this is why accepting watches on consignment is cancer to the watch dealer.  A dealer who accepts goods on consignment will sooner or later run out of stock and customers.  Dealers who publicly seek goods on consignment either don't care about their reputation or haven't sufficient funds to run a successful business. Entrusting your watch to a dealer could be very risky as well: dealers do go out of business, companies change ownership, and deals where one party has full control over the other are recipes disaster.  In conclusion:  If you are thinking of disposing of your watch collection: find a reputable dealer who is capable of meeting your expectations. Meaning: money in your account, to the last cent, straight away.  As a buyer: the best place to buy a new watch is the brand's watch boutique. The second best place is from a reputable second hand dealer. Everything else is a casino.  No matter what you do, stay away from consignment stock. It's a cancer that will slowly destroy your appreciation for horology and ruin your enjoyment of fine watches - for ever.

What is the official Swiss Railway clock?

 

What is the official Swiss Railway clock? In 1944 the Swiss Federal Railway made the decision to standardise and modernise the railway platform clock. Prior to then, every station had its own clock, often in its unique, local style. To add to that, only a few of those electric clocks were synchronised to central time. The first official clock was designed by engineer Hans Hilfiker in 1945. Hilfiker’s last and final version dates from 1955. Since then the official railway clock remains unchanged.

No numbers? Hilfiker was Swiss German and designed the clock dial in an industrial Bauhaus style. The core principle: minimalist but highly legible. Seventy years later, the clock dial design still remains as fresh as ever. Actually, the clock dial is now regarded as one of the 20 most iconic watch faces of all time, on permanent display at the Museum of Modern Arts in New York.  What is the deal with red 'dot' seconds hand? The seconds hand symbolises the red train master’s paddle. It is synonymous with punctuality and accuracy. A clock like no other? Indeed. The official railway clock features a unique function know as the 'stop to go'. That famous red seconds hand completes a full rotation in 58 seconds, and then pauses at the 12 o’clock mark for two seconds while the black minute hand jumps forward - starting its next rotation. Back in the 1950s the two second ‘pause’ was required to re-synchronise the network of over 3000 clocks run all over Switzerland. Today it is an iconic feature associated with what we call ‘Swissness’. SBBCFFFFSWTF? The letters on the dial are acronyms for 'Swiss Federal Railways' in German, French, and Italian: SBB CFF FFS 'Schweizerische Bundesbahnen, Chemins de fer fédéraux suisses, Ferrovie Federali Svizzere' Who is Mondaine? In 1986, the Mondaine watch company, owned by the Bernheim family, obtained the license from the Federal Swiss Railway to make timepieces featuring the Official Swiss Railway clock design. Mondaine makes wrist and pocket watches, as well as clocks. Who wears Mondaine timepieces? Watch enthusiasts who are fussed about minimalistic design, architects and graphic designers, those who have an ‘artistic flair’, or those who are simply concerned with the environment. But above all: people who value punctuality. The challenge The main challenge for Mondaine is to remain relevant while remaining ‘true’ to probably the most stringent design requirement: the watch dial. The fundamental premise is that dial design must remain unchanged to the last iota of shape, font, and style. This is an extremely difficult task for any watch brand. Mondaine keeps pushing the borders with technical innovations, variation of mechanisms, strap colours and environmentally friendly materials incorporated in the never-changing watch style. Actually, the very fact that the next Mondaine watch will look like the one from 1986 is the reason for the loyal support of hardcore brand followers. Mondaine is a club. The Mondaine project is timeless, and it’s here to stay.

We are pleased to offer you a range of the official 'Swiss Federal Railway’ Mondaine timepieces Buying a watch from a watchmaker makes a lots of sense. In all fairness - why would you shop anywhere else? Like any other watch, Mondaine watches are repairable as long as the spare parts are made available to the watchmaker, and as you are fully aware, we are passionate about watchmaking. Meaning: we will be on Mondaine’s back on your behalf, for as long as possible. In addition, we offer 5 years battery replacement free of charge on all Mondaine watches. A battery replacement is easy and could be done on the spot, while you wait. Does Mondaine make mechanical automatic watches too? Yes. We have the 41.5mm steel auto in stock. See below.  What is the “Original Mondaine”? The original is the purest white dial design watch which comes in 3 sizes: 30, 36, and 40mm and bears no other markings on the dial except ‘swiss made’. Battery operated.

A sophisticated present - to yourself I cannot think of a more sophisticated present than the official Swiss Federal Railway designed clock. Silver, black, or red, varying in size, built to last, and priced correctly. My personal pick: the largest of them all - the 40cm monster in brushed aluminium. An absolutely stunning clock; the kind of clock which would fit perfectly well in a harbourside mansion, busy city office, or a summer house cottage somewhere in the Snowy mountains. The smaller 25cm clock is just adorable. I am looking for a specific Mondaine timepiece…? If it is available in the current catalogue, then we can get it for you. Price match? You bet.