HOW USED LUXURY WATCHES BECAME A $20 BILLION INDUSTRY

Fake Rolexes can be tricky to identify. Veteran watch dealer John Buckley buys sells, and repairs used Rolexes, which sometimes sell for hundreds of thousands of dollars. The market for used watches is estimated to be worth 20 billion dollars and is growing fast. Watches have become increasingly popular because they are an excellent way to store money. Rolex outperformed the stock market, real estate, and gold between 2011-2021. However, like any good investment, there are risks involved. For one, there are counterfeits- U.S Customs has shown us how 150,000 fake watches are seized yearly. Moreover, even experienced sellers like John must be careful- sometimes it takes work to spot a fake, even if dealers like John know what to look for. The reputation of a seller can be ruined if they get stuck with a counterfeit watch.

John walks through Manhattan's famous Diamond District and deals in a competitive market. This section of 47th Street has over 2600 businesses selling gems, jewelry, and luxury watches. John usually buys and sells about a dozen weekly watches from stores and other collectors. Despite the high price tags, John says he rarely makes more than a few thousand dollars per watch. He makes more money selling obscure parts than actual watches. Since 2017, the demand for Rolex components and timepieces has surged. At that time, a Paul Newman-owned Rolex Daytona set a record by selling for $15.5 million plus fees. Because of this significant bull run, many individuals have started purchasing watches due to their reputation for excellence and rarity. Retail sales of Rolex are anticipated to surpass those of all other five brands combined in 2021. Why, then, are they so in demand? A few new models seldom hit the market because they have a reputation for excellence, and many of their pieces are made of materials like 18-karat gold, platinum, and stainless steel, which increases their worth.

Rolexes are some of the most popular watches, with an estimated 1 million annually produced. Prices for Rolexes have historically increased due to high demand, and many professionals and skilled individuals still preferred their quality over other brands' products. However, prices for Rolexes can vary depending on the condition of the watch, as older models may resist more extreme conditions. For example, Rolexes were initially designed for professional use and were not meant for sale to ordinary people. These were professional quality timepieces for those who needed exact measurements; they were not collector watches back then. They started creating extremely useful timepieces built to travel underwater, on top of mountains, and jets planes. Some of these expensive timepieces, costing six and seven figures, went for as little as $100 in a military PX.

During his 1953 trip, Edmund Hillary, one of the pioneers to summit Everest, wore a Rolex Oyster Perpetual. In the 1960s, Rolex started supporting tennis tournaments, auto races, and high-end luxury activities. Additionally, Rolex began to appear in movies far more frequently. James Bond star Sean Connery wore one. During the 1980s, Marlon Brando wore one also. A Rolex Daytona model is so sought-after that getting on a waiting list is nearly impossible. However, purchasers are ready to pay an extra amount to avoid waiting, so pre-owned Rolexes can sell for two to three times their original sticker price.

Steve Nethersole, a customs officer, demonstrated how they detect and confiscate fake watches at JFK Airport. CBP receives intelligence about the airplane and container the sender uses before an item arrives in the United States. When it initially arrives, the nation of origin is listed first. The Louis Vuitton comes from France, the watches are from Switzerland. When it is coming from China, then that should be one's first red signal. Sometimes it is impossible to detect with the unaided eye, but when it is awful, one can see the scratches and how poorly it has been machined to a good finish. Rolex exclusively sends to their retail outlets more than 90, not to people in the United States. Steve seizes counterfeit goods after discovering them and uses the internal database of CBP and the brand's website to determine the MSRP of the item. After 25 years in the business, John typically understands what to look for and can determine whether a Rolex is fake. The possibility of fake goods has yet to deter sellers and purchasers. With the launch of its program to sell pre-owned Rolexes, Rolex is likewise making inroads into the used watch industry. Younger generations are fuelling this increased need.