Bloomberg BusinessWeek is reporting that Patek Philippe is scooping up gold futures as a hedge against high gold prices that are threatening the luxury goods industry.
“My major problem is, where is gold going?” Patek Philippe Chairman Thierry Stern told Bloomberg Television in early July. “I have no idea. I see it every time going up, up, up. It’s a big threat.”
Gold futures are up 30 percent in the past year and peaked at $1,266.50 an ounce on June 21, 2010. The concern for Patek is that 80 percent of watches are made of precious metals, such as gold.