Amid a Market Slump, an Unlikely Performer

Photo credit: Fratello

Prices for used Rolex watches fell to fresh two-year lows on the secondary market last month, a Bloomberg article reported this week. “Rolex prices have now been declining for 20 months, and they've dropped 30% since their peak,” according to a recent WatchCharts video titled "When Will Rolex Prices Stop Falling."

One Rolex that has completely beaten the market is not your typical hype-watch: a five-digit, yellow-gold, 36mm Day-Date. The Rolex Day-Date 36 ref. 18238 has never stopped increasing in value during the secondary market's biggest slump in recent memory.

According to ChronoPulse, a market tracker by Chrono24, the Day-Date 36 ref. 18238 was continuously the best performer of the past three years.

The value of the 18238 has appreciated 17.75% in the past three months alone based on actual Chrono24 sold prices, not just list prices; 16.99% in the past six months. If you bought a 18238 a year ago, your watch value would have gone up 8.45%; if you bought it three years ago, 68.63%. Four years: an astounding 88.86% increase in value.

Don Walsh, Ultimate Deep-Sea Diver, Dies at 92

Photo courtesy: Rolex

Retired Navy Capt. Don Walsh, a renowned explorer who traveled to the ocean’s deepest point with an experimental Rolex strapped to the bathyscaphe, passed away Sunday. He was 92.

Walsh, a native of Berkeley, Calif., enlisted in the Navy in 1948 and worked as an aircrewman before he attended the U.S. Naval Academy. He became a submarine officer, commanding USS Bashaw (SSKS-241), and later became the Navy’s first deep submersible pilot.

Walsh was a Navy lieutenant on Jan. 23, 1960, and in command of the bathyscaphe Trieste when he and Swiss oceanographer Jacques Piccard dove deep into the Mariana Trench, the deepest known depression on the Earth's surface. An experimental Rolex Oyster watch, the Deep Sea Special, was attached to the outside of the Trieste.

Rolex gifted Walsh, in 2010, an engraved Submariner “Hulk” 116610LV for the 50th anniversary of the historic dive. The caseback engraving read: “Don Walsh. Deepest Dive. 1960-2010. In Appreciation.” Walsh said in a Rolex video he was very proud of the watch. “It never leaves my sight,” he said.

Rolex Files Patent for New Yacht-Master II Movement

The Rolex dedicated to sailing and built for the timing of a regatta start, the Yacht-Master II, has one of the most complicated movements of Rolex's lineup. Also nicknamed “the other Rolex chronograph,” the Yacht-Master II has a countdown timer which can be set between 1 to 10 minutes, allowing skippers to time their start on the water.

According to a recent patent filed by Rolex, the Yacht-Master II will soon get a refresh, and the new movement will be easier to use. The countdown programmation can be easily done by repetitively pushing the button at 4 o’clock while the chrono is stopped. No need to use the command bezel or to unscrew the crown. (When the button at 4 o’clock is pushed while the chrono is running, the flyback function remains as in previous models.)

The movement design stems from 2007, when the Yacht-Master II was first introduced. A decade ago, Rolex introduced the steel version of the Yacht-Master II and renamed the movement from 4160 to 4161. The reference number of the Yacht-Master II is one of the last to still start with “11”. A new Yacht-Master II that is easier to use will likely put pressure on prices for the discontinued model.

Rolex Perpetual 1908 to Hit Stores in November

One of the biggest news coming from Geneva in March was Rolex’s decision to discontinue an entire line of Classic watches. The 55-year-old Cellini line was replaced with the Perpetual 1908 at Watches and Wonders.

The new dress watch, named after the year the Rolex name was trademarked, touts a completely revamped design. Rolex equipped the 1908 with an exhibition case back — a first for the brand in decades — and a minimalist design with a so-called observatory-style hour hand.

Since March, the Perpetual 1908 had been rarely spotted. Roger Federer was the first to wear it, at the Met Gala, a month after its release, a perfect match for his black tuxedo. Last week, tennis pro Iga Świątek strapped an 1908 after winning the WTA Finals in Cancun. Still, more than seven months after its official release, the dress watch by Rolex was nowhere to be seen at authorized dealers.

Following my article about Ms. Świątek, a public relations official at Rolex SA in Geneva told me the 1908 is coming to the U.S. market in November. The watch will be hitting the stores right in time for Christmas.

It’s too soon to gauge the demand; Rolex is a brand known for impossible-to-get sports model. Still, Rolex is expected to announce more complications to the Perpetual 1908 line at Watches and Wonders — slated to start on Apr. 9, 2024 — perhaps a second time zone or a moonphase.

Rolex Releases Sustainability Policy

Rolex.com

Rolex added for the first time details of its sustainability policy on rolex.com, wanting "to meet the needs of the present without compromising the ability of future generations to meet theirs."

Will future Rolex watches include climate-friendly features? Rolex said it is committed to use "innovation and pioneering spirit" to "adapt to tomorrow's challenges." It also wants to reduce its environmental impact in the process, from manufacture to sale.

For the first time, the watchmaker has also built an alert system for anyone to register concerns linked to harmful effects by Rolex’s supply chain related to minerals or metals sourced from high-risk areas or involving child labor.

Earlier this year, Rolex trademarked the name and logo for “Rolex Impact and Sustainability.” In 2019, it launched the Perpetual Planet Initiative.

Jörg Bucherer Dies Months After Selling Business to Rolex

Photo courtesy: Bucherer

Jörg G. Bucherer, the billionaire third-generation scion of the largest Swiss watch retailer in the world, has died just months after agreeing to sell the business to Rolex. He was 87. The Swiss newspaper Handelszeitung was first to report the news, which was confirmed Tuesday by the Lucerne-based Bucherer group.

Mr. Bucherer took over his father's business in 1977 and pursued a policy of expansion in Austria and Germany. He also opened the world's largest watch and jewelry store in Paris and made acquisitions in the U.K. and U.S. He launched into the second-hand luxury watch business and was first to take part in Rolex’s certified pre-owned program. Today, the brand has more than a hundred specialized jewelry stores around the world and 2,400 employees.

On August 24, 2023, Rolex issued a press release announcing it had decided to acquire the watch retailer “following the choice made by Jörg Bucherer, in the absence of direct descendants, to sell his company’s business.” Rolex said it wanted to preserve the close partnership ties that have linked both companies since 1924.

Mr. Bucherer was the last businessman to personally know Rolex founder Hans Wilsdorf and work with him. 

The Rolex 1908 Makes an Appearance... on the Tennis Court

Photo courtesy: Rolex

Real-life sightings of the Rolex Perpetual 1908, Rolex's newest collection, have been rarer than Daytona Le Mans'. But that's the watch Polish tennis pro Iga Świątek chose Monday to celebrate her WTA Finals win, in Cancun, re-capturing the world No. 1 ranking in the process.

The very first spotting in the wild of a Perpetual 1908 line was at this year's Met Gala, when Roger Federer who was co-chairing the event, wore the white-gold, black-dial version, just a month after its release.

Since then, the Perpetual 1908 — the 39mm gold watch with an exhibition caseback named after the year the Rolex brand was created — has been seen extremely rarely.

Ms. Świątek was signed by Rolex back in January 2021, at the age of 19. She had been the highest-ranked teenager in women's tennis singles and the first Polish player to win a Grand Slam singles title in history. On Monday, the 22-year-old selected a yellow-gold, white-dial 1908 to celebrate her win.

Rolex CPO Inventory in U.S. Reaches New High

Photo credit: Govberg Jewelers

WatchBox, Govberg, Radcliffe and Hyde Park Jewelers announced last week they have merged into a single organization called The 1916 Company, named after the year Govberg Jewelers was founded in Philadelphia. The four entities will sell all their pre-owned Rolex watches through the Rolex Certified Pre-Owned program only.

Executive chairman of The 1916 Company Danny Govberg said the new merged company has around 1,000 Rolex watches that have been through the Rolex CPO process and will be sold with the new international guarantee. He believes the company “will probably be one of, if not the largest certified pre-owned Rolex jeweler in the world.”

Meanwhile, Boston-based and family-owned jeweler Long’s Jewelers, founded in 1878, also announced on Nov. 1st it had started offering CPO Rolex watches for the first time at two Long’s Jewelers stores and online at longsjewelers.com.

Rolex’s U.S. rollout of its certified pre-owned program began in the spring at Tourneau/Bucherer. Watches of Switzerland’s U.S. stores started selling certified pre-owned Rolex watches in August.

Rolex Partners With Wildlife Photographers

Photo courtesy: Cristina Mittermeier

Rolex said it is now supporting two wildlife photographers in their efforts to document the issues facing the world’s oceans through visual storytelling.

Award-winning photographers Cristina Mittermeier and Paul Nicklen — who cofounded SeaLegacy, a non-profit that brings together filmmakers, photographers, marine and climate experts to build engagement and protect the oceans — are the latest addition to Rolex’s expanding portfolio of partnerships.

Rolex said it helped Ms. Mittermeier and Mr. Nicklen produce two films featuring the ocean as a place of discovery and exploration that supports all life on earth.

In recent years, Rolex has increasingly moved from supporting exploration for the pure sake of discovery to exploration for protecting the planet, as part of its Perpetual Planet Initiative launched in 2019.

Unpolished 70-Year-Old Rolex Surfaces at Auction

Photo courtesy: Phillips

A fresh-to-market unpolished Rolex ref. 6062 will be auctioned off in Geneva on Nov 4th. Auction house Phillips calls it "an absolutely exceptional specimen. Preserved in unpolished condition, the case is a sight to behold."

The 36mm stainless-steel Rolex manufactured circa 1953 is expected to reach between 1 million and 2 million Swiss francs. Reference 6062 is one of two Rolex models to feature a triple-calendar complication with a moon phase complication.

Phillips says this example displays completely original lines, curves and finishes with the numbers between the lugs "incredibly crisp." The inside caseback does not display any service marks of any kind; the auction house believes the watch must have seen very little wrist time since its creation.

Rolex Gives Nat Geo Record Donation

Photo courtesy: National Geographic

Rolex’s most recent donation to National Geographic is “unprecedented,” according to Jill Tiefenthaler, CEO of National Geographic Society, one of the largest nonprofit scientific and educational organizations in the world. “This is by far the largest single gift in the National Geographic Society’s 135-year history,” she said Thursday.

While neither the Society nor Rolex would disclose the amount, National Geographic said the money will be used to expand its headquarters in Washington, D.C., calling it “the most significant expansion in the Society’s history.”

The reimagined campus, slated to open in 2026, will connect the Society headquarters, an expanded museum and new public spaces, with the goal to “inspire millions to explore and learn about our world,” Ms. Tiefenthaler said.

The partnership between the National Geographic Society and Rolex started 70 years ago, with the watchmaker supporting National Geographic expeditions and explorations, including in the Mariana Trench to conduct deep-ocean research.

In a rare comment from the brand, Rolex said it wants to not just preserve the natural world, but also inspire future generations to protect it. “We’ve seen firsthand how critical the Society’s global headquarters have been as a collaboration hub, convening place, and idea incubator,” Arnaud Boetsch, Director of Communication at Rolex, said.

I listed last week some of Rolex’s most recent — and unexpected — donations in “Where Does (Some of) Your Rolex Money Go?”

New Pocket-Sized Book on Rolex Out in the U.K.

Photo credit: Rachael Taylor

A British jewelry author announced this week the release of a new book on the world’s most famous watch company. Rolex: The Story Behind the Style is Rachael Taylor's third in a series of titles about luxury brands.

Measuring just 13 x 2 x 19 cm, the 160-page self-described “pocket-sized gift book” is a welcome change from the heavy coffee-table tomes already written about the Crown.

Still, the seasoned editor, whose freelanced contributions on jewelry include The Financial Times, The Telegraph, Independent and Condé Nast publications, said she doesn't skimp on photos and information, covering the company's entire history, including the designs that made Rolex such a significant player in the watch business.

The book is available for sale in the U.K. starting Oct. 26, but won’t be available in the U.S. until Apr. 16, 2024.

Exceptional Rolex Daytona Tops €1.7M

Photo credit: Monaco Legend Group

A fresh-to-the-market Rolex Paul Newman Daytona with a tropical brown “Oyster Sotto” dial reached 1,796,000 euros at Monaco Legends Auction this week, on the higher end of its 1-million to 2-million estimate.

The “Oyster Sotto” Paul Newman Daytona is, without a doubt, a dream watch and a legend among Rolex collectors. Fewer than 20 examples have appeared at auctions, underscoring how incredibly rare these Paul Newmans are.

The names “Oyster Sotto” or “RCO” are names given by collectors when the familiar “Rolex”—“Oyster”—“Cosmograph” layout on the dial is instead displayed as “Rolex”—“Cosmograph”—“Oyster.” Oyster sotto is Italian for “Oyster underneath.”

This tropical 6263 had only had two owners in its history, Monaco Legend Group said, and came “from one of the most important and prominent Daytona collections ever assembled.”

Rolex Updates Service Card With NFC Technology

Photo by Searchart. Used with permission.

The two-year warranty card included when a Rolex watch returns from service has been updated this month and now features the same technology as the original warranty card.

The new Carte de Service Rolex includes a Near Field Communication chip, or NFC, allowing the transfer of data between the card and a device when the two are roughly an inch apart. The service card data include the watch's reference and serial numbers and the end date of the warranty.

Starting in 2020, Rolex updated the warranty card that comes with any new Rolex purchase with the same NFC technology.

Rolex’s move to update the service card is its latest counterfeiting initiative aiming to fight a $20 billion industry. According to Rolex insiders, Rolex has experimented with color shifting dials to make watches more difficult to replicate. The technology, which is already used in banknotes, would require a special light to authenticate a dial, one of the more expensive parts of a Rolex. Rolex is also mulling over assigning three serial numbers to one piece, sources say: one for the case, one for the movement and one for the dial.

Chrono24 Unveils ChronoPulse, a New Value Index

Karlsruhe, Germany-based Chrono24 unveiled last week ChronoPulse, a new valuation tool that competes against WatchCharts. ChronoPulse could be a game changer as it tracks actual sold prices, not listing prices, from its databases of 140 watches from the 14 most profitable manufacturers over the last three years.

Chrono24 calls ChronoPulse the “Dow Jones for luxury watches” and said the watches included in the calculation are in proportion to their overall transaction volumes. While the “weighing” of each watch will be updated every six months, the data in the index is updated daily.

Chrono24 said it developed the new tool with industry experts and data scientists. Among the members of its Index Committee are Dane watch specialist Kristian Haagen, Singapore-based collector Jack Wong and Economics professor Brendan Cunningham.

The German online platform founded 20 years ago has recently reached a valuation of 1 billion euros, touting a few high profiles investors, including Bernard Arnault's family office and professional soccer player Cristiano Ronaldo.

The new tracking tool confirms the overall decline in value of the watch market reported by WatchCharts earlier this month. The biggest loser of the past year among Rolex watches is the yellow Oyster Perpetual 41, a drop in value of 22%, ChronoPulse shows. Surprisingly, the biggest Rolex gain of the past six months has been the Day-Date 36, reference 18238. Its value went up 10%.

Rolex to Increase Production Before 2029

Photo credit: Jean-Christophe Bott

Rolex is moving forward with plans to set up temporary production sites, in Romont and Villaz-Saint-Pierre, until 2029, when the new 2,000-employee Bulle facility is up and running.

Renovations for the Tetra Pak halls, in Romont, began earlier this month and will top 33 million Swiss francs. The new site will have between 250 to 300 Rolex employees, who are slated to transfer to the Bulle location in six years.

Rolex getting a jump on production before the Bulle site is ready won’t help the current state of its secondary market, whose value is already in decline, according to a WatchCharts & Morgan Stanley report out last week.

Few are opposing Rolex’s move to the defunct Tetra Pak site in Romont. The Swiss non-profit bicycle organization Pro Vélo said last week the current plans didn’t include enough parking spots for bicyclists.

Premium Prices for Rolex CPO Watches Top 30%

Photo credit: Rolex

It’s been 10 months since Rolex rolled out its Certified Pre-Owned program in Europe through Bucherer.

While the program has gained momentum, especially in the U.S., sales still represent a small portion of the pre-owned inventory sold online, according to a report just out by WatchCharts and Morgan Stanley.

As of Oct. 1st, 2023, U.S.-based Tourneau totaled 1,400 Rolex watches listed online while Bucherer just over 200. This figure will likely go up as new Rolex retailers in Europe join the CPO fray: Watches of Switzerland group, for example, will soon be selling certified pre-owned Rolex watches in the U.K.

The fact Rolex’s current CPO inventory is primarily made up of references produced between 1990 and 2010 begs the question: Is there a growing demand for 13- to 30-year-old models, most of them equipped with a smaller and thinner case?

One theory is watch fashion has changed. Another theory suggests modern pieces are still more popular. But owners would rather keep their watches than accept an offer from an authorized dealer. Meanwhile, the modern pieces that are part of the CPO program tend to be snapped up at a higher rate, creating a disproportionate amount of neo-vintage Rolexes left in inventory.

Still, we continue to see a premium well over 20% when a piece is being listed through the CPO program, and that premium seems to have increased, at least in Europe, topping 30%. All that according to the report, which compares the price of each Rolex CPO listing to typical prices for the same watch sold by a non-Rolex certified dealer in the same region.

When compared to the previous quarter, Rolex CPO premiums have increased several points, from 20%-25% to 28%-30%, above non-CPO pricing, the latest sign Rolex authorized dealers involved in the program have felt little pressure from the traditional grey market.