Watches

So, remember the crazy markups on used Rolex watches? It all started back in 2016 with the ceramic Daytona – that one watch that made everyone lose their minds. Suddenly, there were waiting lists longer than a blockbuster movie marathon, averaging 1-2 years. And boom, that turned second-hand models into gold mines.

But wait, it didn’t stop at the Daytona. The hype trickled down to other cool watches like the Submariner and GMT, making all-steel sports models like rare Pokémon cards for new collectors – impossible to get.

Fast forward to today, after Rolex jacked up prices more times than we’ve lost our keys. Now, some “hard to get” sports models, like the non-date and date Submariners, and bimetal GMTs, are playing price tag catch-up with their brand-new buddies in the store. Also, other brands like Tudor are doing a 180, turning once-exclusive watches into online shopping bin regulars.

It’s a mixed bag for collectors. On one hand, those Rolex dreams are closer to reality at retail. On the flip side (pun intended), the old hard-to-get Rolex gang is losing some of its cool factor. People are ditching their preowned watches like it’s a flash mob, causing a flood of supply and, you guessed it, a dip in prices.

Dealers are in on the action too. They’re snagging watches at or just below the retail price because, let’s face it, there’s a watch flood out there. Even newbies like the Rolex GMT Master 2 – 126713GRNR (aka “The Zombie”) took a nosedive from £30,000 to around £16,000 in just six months. Dealers are playing it safe, avoiding the hype train to keep their wallets from catching fire.

So, what’s our advice in this watch rollercoaster? Stick to the classics: buy a watch you genuinely want to keep for the long haul. Forget the quick cash dreams; think about whether you can stand by that timepiece for 2-3 years or more. If commitment issues kick in during the purchase, take a step back. Patience pays off, and there’s always another watch waiting to steal your heart.

Are watches still investment material? Sort of. But don’t go blowing your paycheck on the latest and greatest. That new model will age faster than last year’s tech. Real “investment” potential lies in discontinued models with a history – the ones not making the rounds anymore. They might fetch a higher price due to rarity, condition, and people wanting them bad. But let’s be real, it’s more of a gamble now than the old Rolex flipping sure thing. Do your homework and be ready for a wild ride.

After reaching historic highs in February 2022, we are currently witnessing a significant dip in the prices of preowned watches. While this may prompt some to rush to their safety deposit boxes and consider selling their watches on the open market, it has also created a fantastic opportunity for those who previously saw their dream watches reach astronomical prices, making them unattainable. Now, these watches appear to be more affordable.

The cost of living crisis, which has affected the prices of essential goods like food, fuel, and raw materials, combined with the ongoing high levels of inflation, has created the perfect storm for reduced buying activity in the luxury sector. To be clear, people are still buying watches, but they are primarily serious collectors who now see an opportunity to purchase their desired watches at prices at least 25% lower than the highs we witnessed last year.

At present, the market seems to have decreased by at least 25%, bringing preowned watch prices for stainless steel models back to what we might consider “normal” levels. By “normal,” we mean prices that reflect a sustainable increase, not below retail.

Your decision depends on your current situation. If you bought a watch with the intention of making a quick profit, I must say that this is not an ideal time for you. You may want to consider holding onto your watch or, at worst, selling it promptly.

However, if you are a genuine collector looking to purchase a high-demand watch at a fair market value, there has never been a better time to find the watch you’ve always desired.

As a watch enthusiast and collector, I would advise against viewing watches solely as commodities to invest in. Instead, I recommend buying a watch that you truly enjoy and love. I predict that the market will continue to grow, albeit not reaching the highs of 2022.

We may see annual growth rates of 5-7% for stainless steel high-demand pieces and around 2-3% for bi-metal pieces. As for solid gold and other precious metal watches, it’s possible that their prices may dip below retail for the foreseeable future.

Now, this might come as a surprise but not wearing your watch can affect the movement over time. Think of it like a car sitting on your driveway for 2 months. On the outside, it will look fine but under the bonnet, the lack of mobility will inevitably lead to parts seizing up or failing. We would recommend cycling your watch collection to ensure all your watches get plenty of wrist time to keep the movement active.

While wearing your watch as much as possible is always good, it is always worth trying to avoid potential hazards which could potentially scratch, dent, or break components of your watch. The most common areas for these occurrences are the sapphire crystal face, the side of the lugs, and the clasp. These areas of your watch are normally close to table edges, door handles, and sometimes concrete floors.  And while it is not the end of the world if you do scratch your watch, it will cost up to £200 to get it polished and back to looking new again.

We would recommend keeping one of our Clam Single Watch Travel Cases with you just in case you are doing anything that might cause you to damage your watch or if you need to secure your watch while in storage.

This might seem like an obvious tip, but you will be surprised at how many people throw away the box, receipt, and even the paperwork for the watch. But if a secondary market dealer was to tell you that the box, papers, and purchase receipt could be worth 10-20% of the value of the watch, you would defiantly think differently!

This is why we would recommend you keep hold of everything that comes with your watch which would normally consist of:

• The Watch (Obviously)
• Green Presentation Box (with cushion)
• Cream outer Box
• White sleeve with sticker
• White hangtag
• Green certified tag
• All links (If any are removed from the watch)
• Bezel protector (Sometimes these are excluded)
• Rolex manual
• The warranty card with the Rolex green wallet
• Original Purchase Receipt

Another tip that might be obvious to the seasoned collector but keeping your watch original is vital to value retention.

When we say ‘original’ a secondary market dealer would say ‘factory’. This would mean that all parts of the watch including the bracelet, dial, and hands remain with the watch even if it goes in for a service. Rolex has been known to replace dials, bezel inserts, and original bracelets on vintage models when they come in for a service. While it is nice to have something new and, in most cases, improved on your watch after a service, collectors go mad for original parts even if they are heavily worn.

So, if the watch does go in for a service, be sure to keep all original parts for your watch. This will increase the value by a possible 30% on certain models.

Very similar to tip number 4, we would recommend staying clear of anything that is considered aftermarket. This includes adding gems to the watch by drilling holes into the metal itself. Other things we would recommend staying clear from are after-market bezels or dials. While these are not permanent, they are unnecessary and will require you to keep hold of the original parts later.

One of the costliest repairs for any Rolex watch is the frequent mistake to not screw the crown down properly before entering the water. I have unfortunately seen many watches that have had water creep into the movement and to put it simply, water and oil do not mix at all. This will lead to an extensive repair cost of around 7-10% of the value of the watch.

As mentioned in tip number 2, a professional polish can cost between £100-£200 (depending on the metal), and frequent polish can create a domed mirror effect instead of a flat mirror effect. This is one of the few ways you can tell a watch has been over-polished or not polished correctly.

Another unfortunate outcome of amateur polishing is rounding the edges of the lugs. Some secondary market dealers would refer to the watch as being ‘sharp’. This generally means that the edges of the watch are sharp and have either not been polished or had a professional polish.

It’s hard to say if polishing affects the value as some buyers like their watch looking new, however, depending on the model and age, we would advise asking a second opinion before polishing your watch.

The general rule of thumb is to enjoy your watch but be mindful that keeping it in great condition will help you reduce any potential costs later on. After all, no one likes unexpected services or costly repair bills so by following these 7 tips you should be able to keep your watch in top condition for yourself to enjoy or move on to the next potential owner.