2012
02.28

The Rolex Crown

Rolex is one of the most recognizable onomatopoeic words in the world, and is considered the most known luxury watch brand in the market by many. This blog is of two true stories I can across recently and with their permission, but substituting their names with fictional names, will tell of their Rolex Experience.

Jane is a successful executive for a fortune 500 company. A few months ago she went to Abu Dabi on a business trip and decided to do some sight seeing. She traveled with her Prada purse which had her passport, credit cards, money, cell phone, keys, address to the hotel she was staying at… basically her life. While on her endeavor she lost her purse. It is possible she misplaced it, it is possible it was stolen she says, the net net was it was gone. Without a way to get back and without money she was in real trouble. She knew no one she had nothing and she was in a state of panic. Jane said she thought she was going to die alone in a land she didn’t know with only the clothes on her back, shoes on her feet and then it hit her… the Rolex on her wrist. Jane was the proud owner of a mid-size Rolex 2 tone Datejust with original Rolex diamond markers. She was able to sell her timepiece for enough money to get back to her hotel, work out her i.d. issues, book her flight back home, and buy another purse. She said it was the Rolex brand recognition which saved her from catastrophe.

Story number two; I was at a BMW dealership recently and while at the coffee maker I met a very distinguished older gentleman, I’ll call him Jack. At first glance his wrist appeared to be adorned with a Rolex GMT so I assumed because of the oyster bracelet two tone and the side view of the bezel. I commented ‘nice GMT’ and he replied ‘actually it’s a sub.’ I noticed he attempted to semi cloak his timepiece with the cuff of his sleeve as many do who own luxury timepieces when put on the spot. Recognizing his apprehension I quickly began speaking on the various aspects of the Rolex Submariner I enjoy, starting with it’s history of how Rolex implemented another carpe diem when it built a Rolex watch specifically to aid Professor Auguste Piccard and his son, Jacques on their new bathyscaphe to a world record depth of 10335ft below the ocean surface. I mentioned how revolutionary icon Che Guevara wore a Rolex Submariner. Jack opened up. I asked him what was his reason for purchasing a Rolex. This is where the amazing part begins.

Gentleman Jack, told me 3 years prior he was broke, sleeping out of his Volkswagen. He had grown children and grandchildren, and had hit rock bottom in his life. He said he reached a moment where he said enough is enough! Anyone can become successful at any time in their life. He believed his skill was in sales as it had been in his younger years. He jumped back into sales with specific goals set forth form the beginning. Goal number one was to own a Rolex because to own the brand was to say ‘I have arrived!’ His next goal was to own a house fully furnished, third was to own the most luxurious BMW with all the bells and whistles, and his last was to have a strong reserve in the bank. He said in less than three years he, a now 72 year young man, accomplished all of these goals and was never going back. Success, in his words, is setting forth personal goals and reaching them without excuse. I agree.

We, at GlobalWatchBrokers.com, hear stories everyday about the perseverance of the human spirit and the symbolism a luxury timepiece holds for the accomplished. Tell us your story so we may share it with fellow watch conosseurs. 

2012
02.26
Rolex Datejust custom

Rolex with custom dial, custom markers, and custom bezel

There is something to be said about customizing a luxury timepiece. Frank Sinatra did it his way and many watch enthusiast feel the same. Once you have purchased a timepiece it is your prerogative to do with it as you wish, however, be aware of the potential resale issues you might have.

Rolex owns a large portion of the watch market. They have a variety of models ranging from the Air King up to the Cellini King Midas, the difference in price is many thousands of dollars. Rolex, as every major brand (Patek Philippe, Audemars Piguet, Breitling, Panerai etc), invest much of their earnings into research and development, as well as the aesthetics of the timepiece. Money is poured into marketing certain features of a timepiece such as it’s water resistance, anti-magnetism,  gravity resistance,  scratch resistance etc. Customization can compromise the features of a timepiece.

There is a Rolex Day Date Mens President 18k gold, that at first glance, appears it will fetch low to mid five digit figures in its resale. However, upon further review, the crystal is not original nor is the president bracelet. This watch has been customized. Although it’s original crystal was acrylic and its new crystal is sapphire, the water resistance and the aesthetics have been compromised. Where the bezel should sit flush to the case, it now has space. Why?… because the original crystal was formed to precisely fit in conjunction with the bezel and the case. With space between the bezel and the case the opportunity for water to get in is created. Now this beautiful Rolex Day Date President is a mid four digit resale timepiece.

That story and countless others are not bad necessarily. If you choose to exercise your right to customize your luxury timepiece, then by all means do so, so long you are aware of the dangers. From a resale perspective, when you replace the original parts it can become less attractive to collectors, seeking a preserved timepiece, bringing the value possibly down. From an aesthetics stand point, you could be destroying a feature or function detrimental to the workings of the timepiece, again possibly dropping its value. Just be cognizant.

There is a basic formula for understanding customization of a timepiece:

Original Cost - Depreciation after purchase – Customization depreciation (specifically what is customized and how it affects the integrity of the timepiece) + the price of the Customization = True Timepiece Value (TTV)

So If you replace your Rolex Submariner ceramic bezel, valued intact for lets say $8000.00, with a gold diamond bezel costing you $4000.00 to pull off, you have to subtract the dollar amount for customizing the bezel to begin with, coupled with the loss of diamond value (because the value of diamonds are marked up 30-60% from jewelers). You might think your watch is worth $12000.00 ($8000 + $4000) but it’s probably worth 6-8k at best. That is of course your watch is still water resistant.

Know what you are doing or buying before hand and enjoy your luxury watch until it is time to pass it on.

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