It is no secret that Rolex is a cash rich company. It is not likely a huge impact for them to be buying back inventory which will likely be warehoused until future times when things are better for the luxury watch market. I would go so far as to say that it is probably in Rolex's best interest to dismantle and recycle unsold watches than to release them at below market rates (that they set). Further, you might be wondering why dealers are all selling back to Rolex in the first place rather than discounting and potentially getting more money. This would likely conflict with their authorized dealer contracts with Rolex. Plus, Rolex likely has a redemption right - that allows it to buy back stock under certain circumstances. For you, this means less chance that your dream Rolex watch is going to be discounted any time soon. Pictured is a 2009 Rolex Datejust watch with Arabic numerals.

Via WorldTempus (in French).

Ariel Adams publishes the luxury watch review site aBlogtoRead.com.

In a global marketplace, even Dubai isn't protected from the economy's frosty embrace. Although real estate giants don't anticipate a market crash in this tourist hot spot it has certainly slowed the rush to invest in Dubai down a bit. There may be a positive note in this unpredictable market as some believe the speculators or "flippers" will get weeded out and bring more stability. I don't pretend to understand everything about the effects of our economic issues but it's certainly disconcerting when Dubai is feeling the strain.

Are luxury retailers too optimistic about the opportunities in China? As the economy rapidly grows, retailers are faced with rising costs for labor and rent and a customer base that is more reluctant to purchase luxury items than in other countries. Many high end brands - Cartier, Louis Vuitton, Chanel and Hermès, to name but a few - are all in competition for the same small segment of the population. While that doesn't sound so different from the way the retailers operate in other parts of the world, there is on big difference. In China, consumers are primarily interested in things that are "obvious status symbols," with easily visible logos from only the top brand, so many companies, even big name ones, are barely breaking even after years in the country.

But the segment of the population that can afford luxury is growing and as the country moves more towards a market economy, they grow more willing to purchase such goods. The lesson to retailers? Start small and learn the market. It's probably only a matter of time before more consumers start to want to add some luxury to their lives.

When it comes to real estate, many people will tell you that it all boils down to: location, location, location. This may or may not be true, but more people than you can shake a stick at (or shake a mortgage at) believe in it wholeheartedly. A nice house can do a lot for a property, but it seems that people are paying a premium for the property alone now. And I'm not referring to a vacant lot, priced expensively but accordingly. I'm talking about lots with run-down, unimproved houses so small you might actually be at risk of inhaling them when you hear the price - assuming they don't collapse first.