[scotchnrocks]

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From reading the article, it looks like the sellers are just doing an arbitrage of sorts.

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Isn't that what all sellers (all businesses, really) do? I want to buy a watch at $3000, the manufacturer wants to sell that watch at $1500, the watch shop makes it happen.

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Sort of. From what I gathered the watches come from other regions where the cost to buy was cheaper. For example, say a US dealer can get the watch from the factory for $1k and a South American dealer can get it for $500. The South American guy offers it for sale to Americans for $800 but it is not an authorized sale so no factory support, and he is undercutting the US dealer.