As many of you pawnbrokers and jewelers know, Rolex is basically one of the only watch companies where new and used product has a "market value" and fluctuates similar to the stock market. Collector trends, production levels controlled by the brand owner, and exchange rates are all variables that drive Rolex prices. Knowing basic fundamentals as a store owner and purchaser of pre-owned Rolex will allow for you to capitalize on buying opportunities and increase the number of pieces you have a chance to acquire.
We offer our members up-to-date trade prices for Rolex....this goes a long way with buyers that may not have a significant pulse on the market, and know the price ups and downs from model to model. If you do not have a resource but you are still actively pursuing the purchase of Rolex, a good general rule of thumb in valuing is as follows:
Sport Models (Current OYSTER CASE Models):
(include Submariner, Seadweller, Explorer, GMT, Yachtmaster, and Daytona models)
45%-55% of the retail for current models in All Steel
40%-45% of the retail for current models in Steel & Gold
40%-45% of the retail for current models in All Gold
Non-Sport Models (Current OYSTER CASE Models):
(include Date, Datejust, Day-Date, Pearlmaster, Masterpiece, President Variations etc)
40%-45% of the retail for current models in All Steel
40%-45% of the retail for current models in Steel & Gold
40%-45% of the retail for current models in All Gold
EXAMPLE: % of the retail = LADY DATEJUST, MODEL 179173 = $7,150 Retail x .40%-.45% of retail = $2860 to $3200 range. This is the estimated range a wholesale buyer at a trade show would offer = YOUR LIQUID PRICE!
The above "Quick Reference" is only a resource for:
-giving you an estimated "Trade" price indicating a general range where a pawnbroker could sell product to a wholesale buyer (within these estimated price points).
-Pieces equipped with diamond accessories do not apply to this quick estimation pricing.
-only a quick reference for "current" product meaning product that is still in production with the relevant model number. You wouldn't value a 15 year old model 69173 lady Datejust as you would a current 179173 lady Datejust. A quick rule of thumb for models that are not the current models found in the most recent price list tends to be 25-33% of the current retail depending on year & condition (EXCLUDING PLASTIC CRYSTAL, CELLINI MODELS AND VINTAGE SPORT MODELS).
We know first hand that there are some pawnbrokers that could increase their exposure if they had a better pulse on true market value, and increase their opportunities. Also, we have seen first hand many pawnbrokers that just look at profit margin and leave a significant amount of money on the table for the wholesaler. We want to help you stop counterfeits, but also it is important for us to guide you with the resale, disclosures, and increased profit opportunities that buying and selling pre-owed Rolex provides.
Tuesday, May 11, 2010
Wednesday, April 14, 2010
How to Evaluate a Rolex Diamond Bezel
Determining if a diamond bezel on a Rolex is original is key if you are laying out a significant amount of money. It's common to hear of pawnbrokers or jewelers purchasing a Rolex with the assumption that a diamond bezel was the original product, only to find later that it was switched out with an aftermarket product. This also applies to retail shoppers purchasing from shady dealers.
Here are some important tips for verifying if a bezel is genuine Rolex vs being aftermarket:
Fig.1
.jpg)
Figure 1. With a 10x loupe, verify that there are 4 bead sets per diamond. These bead sets should be uniform and perfect with no tool marks on the inside rim of the bezel blank. Also loupe the diamonds for flaws as Rolex only uses VVS1 grade, colorless diamonds.
Figure 2. Review the side profile of the bezel i.e. thickness. In this illustration, we laid a non-genuine bezel (top) over an original Rolex bezel (bottom - installed on the watch). Notice that the aftermarket bezel is significantly higher or thicker in comparison to the original. Any thickness or overhang over the side of the case and winding crown is a simple "alert" that the bezel is aftermarket.
.JPG)
Figure 3. If you have the capability, have the bezel removed and verify the presence of the Rolex coronet (crown engraving) on the bottom of the bezel. This coronet must be present for you to capture the genuine value out of the diamond bezel.
Figure 4. Original Rolex diamond bezels will have smoothly finished radial lines on the bottom of the diamond bezel (underside). These radial lines are the result of the milling process. If the bottom of the bezel is flawed with finish imperfections, chances are it's an aftermarket.
Fig. 5
.JPG)
Figure 5. Notice the lack of radial lines and imperfect drill holes on the bottom of this non-genuine diamond bezel. Drill holes for the diamond settings if present, should be perfect and not off-center or oblong as pictured above.
Many pawnbrokers may cut there risk and offer "break-out" value for the diamond bezel. This is a safe process but you are almost guaranteed to lose a significant number of Rolex buying opportunities. And, as you all know, buying & selling pre-owned Rolex is a very profitable venture, increasing revenues significantly.
Here are some important tips for verifying if a bezel is genuine Rolex vs being aftermarket:
Fig.1
Figure 1. With a 10x loupe, verify that there are 4 bead sets per diamond. These bead sets should be uniform and perfect with no tool marks on the inside rim of the bezel blank. Also loupe the diamonds for flaws as Rolex only uses VVS1 grade, colorless diamonds.
Fig. 2
Figure 2. Review the side profile of the bezel i.e. thickness. In this illustration, we laid a non-genuine bezel (top) over an original Rolex bezel (bottom - installed on the watch). Notice that the aftermarket bezel is significantly higher or thicker in comparison to the original. Any thickness or overhang over the side of the case and winding crown is a simple "alert" that the bezel is aftermarket.
Fig. 3
Figure 3. If you have the capability, have the bezel removed and verify the presence of the Rolex coronet (crown engraving) on the bottom of the bezel. This coronet must be present for you to capture the genuine value out of the diamond bezel.
Fig. 4
Figure 4. Original Rolex diamond bezels will have smoothly finished radial lines on the bottom of the diamond bezel (underside). These radial lines are the result of the milling process. If the bottom of the bezel is flawed with finish imperfections, chances are it's an aftermarket.Fig. 5
Figure 5. Notice the lack of radial lines and imperfect drill holes on the bottom of this non-genuine diamond bezel. Drill holes for the diamond settings if present, should be perfect and not off-center or oblong as pictured above.___________________________________________________________
These are a few quick tips for verifying the presence of a diamond bezel on a Rolex watch at the point of purchase. Rolex retail prices for diamond bezels are approx. $4,000 per carat. Ladies and Gents bezels will retail at approx. $6,000- $13,500 depending on the style. These values are why you must evaluate all Rolex accessories or you could take a significant loss.
Just FYI, in terms of valuations (and I am talking to the retail jewelers and pawnbrokers), value original bezels at approx. 25% of the retail (assuming good condition and it's a popular model). In doing so, you will be liquid if you need to flip to the trade for a profit quick, as well as being in a good position for a great retail profit. Make Money!
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Tuesday, April 6, 2010
Careful - Don't Strip That Watch Case Back!
Many of our pawnbroker accounts have been leery of opening high end watches coming across the counter for loan or sale. Inspecting the inside of a watch is an absolute necessity when verifying authenticity. It's a necessary evil and damage of the customer's product can easily be avoided with the right policy.
First, verify that there are no external red flags that indicate a fraud i.e. bad printing on the dial, filed edges on the bracelet clasp, poor case back stamping etc. Things look good, then approach the deal within the following guidelines:
A) Establish and agree on a price for loan or purchase with the client.
B) Once the terms of the deal are confirmed, then and only then agree to opening the watch case.
C) Indicate that you will not be liable for the re-sealing or waterproofing of the item.
This last element of your policy is critical as most watches are not damaged on the opening of the timepiece. Rather, the damage occurs when an untrained evaluator does not gently line up the case threads of the case back with the case itself, and cranks it home....never to be opened in one piece ever again! Many Rolex watches have gone to the parts graveyard for such an event and its cost the store owner thousands. Don't be that guy!
Case opening is a simple process:
1) Purchase a good case opener from Casker.com. Spend the money for a nice Bergeon with a variety of opener rings....it will pay for itself over and over.
2) Run a line with a sharpie from the case back across to the case. This is your reference point when closing.
3) With the case opener evenly leveled with the case back threads of the watch, firmly apply downward pressure and turn counter clockwise.
4) After internal verification of the watch, make sure the case gasket is in place and with two fingers, gently line up the case & case back threads. Close until finger tight. At this point, you pass the liability for water resistance testing to the client if they return to claim the item (as agreed) and the case is undamaged. All pawnbrokers take a sigh of relief!
5) Now, for whatever reason, if you choose to close that case back tightly with the case tool (that was finger tightened), you need to reference that Sharpie line you marked prior to opening. Tighten the case back evenly until those guidelines match up.
These are processes that will make do when you have:
No experience / No watchmaker / No manager on the floor / No pressure tester
You can make the deal, avoid liabilities while verifying the watch, and pass the end responsibility on to a list of local watchmakers assuming your client returns to claim the product and needs it sealed. This process (not allowing your staff to tighly close product) will protect you from damaging those expensive pieces.
First, verify that there are no external red flags that indicate a fraud i.e. bad printing on the dial, filed edges on the bracelet clasp, poor case back stamping etc. Things look good, then approach the deal within the following guidelines:
A) Establish and agree on a price for loan or purchase with the client.
B) Once the terms of the deal are confirmed, then and only then agree to opening the watch case.
C) Indicate that you will not be liable for the re-sealing or waterproofing of the item.
This last element of your policy is critical as most watches are not damaged on the opening of the timepiece. Rather, the damage occurs when an untrained evaluator does not gently line up the case threads of the case back with the case itself, and cranks it home....never to be opened in one piece ever again! Many Rolex watches have gone to the parts graveyard for such an event and its cost the store owner thousands. Don't be that guy!
Case opening is a simple process:
1) Purchase a good case opener from Casker.com. Spend the money for a nice Bergeon with a variety of opener rings....it will pay for itself over and over.
2) Run a line with a sharpie from the case back across to the case. This is your reference point when closing.
3) With the case opener evenly leveled with the case back threads of the watch, firmly apply downward pressure and turn counter clockwise.
4) After internal verification of the watch, make sure the case gasket is in place and with two fingers, gently line up the case & case back threads. Close until finger tight. At this point, you pass the liability for water resistance testing to the client if they return to claim the item (as agreed) and the case is undamaged. All pawnbrokers take a sigh of relief!
5) Now, for whatever reason, if you choose to close that case back tightly with the case tool (that was finger tightened), you need to reference that Sharpie line you marked prior to opening. Tighten the case back evenly until those guidelines match up.
These are processes that will make do when you have:
No experience / No watchmaker / No manager on the floor / No pressure tester
You can make the deal, avoid liabilities while verifying the watch, and pass the end responsibility on to a list of local watchmakers assuming your client returns to claim the product and needs it sealed. This process (not allowing your staff to tighly close product) will protect you from damaging those expensive pieces.
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