Used Rolex Watches: San Francisco Gem Expert Says Rising Gold Prices Could Affect Holiday Costs in Pre-owned Rolex Market

San Francisco, CA – Used Rolex watches - not just new ones – may be impacted by the rising price of gold,” says San Francisco gemology expert Avi Dayan. “With gold topping out at more than $700 an ounce last month – and forecasters predicting higher valuations ahead – jewelers who trade in used Rolex watches may be forced to raise prices as much as 30 percent long before the Christmas buying season begins,” he says.

Dayan says climbing interest rates, the weak U.S. dollar and the war in Iraq have made gold and other precious metals more valuable than they have been in more than 25 years. “Experienced Rolex collectors are keeping their eyes on the price of gold,” he says.

“Some consumers believe it’s only new Rolex watches that are affected by soaring gold prices – but that’s not the case,” says Dayan. “The cost of merchandise in the pre-owned market is directly affected by activity in the new Rolex arena.”

Rolex SA, the Swiss company that has manufactured luxury timepieces since 1905, vigilantly controls the market, says Dayan. “Rolex never floods the market. You won’t see an oversupply of Rolex watches in jewelry stores.”

Such controls make the new watches scarce, says Dayan, a graduate of the Israeli Gemological Institute. “As a result, some jewelers deliberately ‘hold back’ their Rolex inventory during unstable times banking on a better price later. If the price of gold continues to go up, by Christmas, those same retailers will be pulling their Rolex merchandise out of the case, adjusting the price upward and making a bigger profit.”

Dayan says there is no scarcity of http://www.aandewatches.com/. “While the price of used Rolex watches is impacted by steeply higher gold prices, inventory is not held back because a worldwide network of buyers is continually providing a quality supply to dealers. There is just no incentive for a used Rolex dealer to hold back,” he says.

“Typically, there is lag time between rising prices in gold and higher costs for watches,” says Dayan, “but eventually the lag time ends and the higher prices begin.” When jewelers who buy used Rolex watches are forced to pay from10 to 30 percent more than they paid for a similar timepiece even a couple of months earlier, the higher cost will be passed on, says Dayan.

“Not long after, the increased cost filters down to the doctor’s wife who wants to surprise her husband with a Rolex on Christmas morning.” Dayan says prices on a used Rolex President could go up as much as 10 percent and 30-50 percent on various gold and stainless steel styles.

“Jewelers must answer this question: ‘Should I charge the consumer what I paid for the watch, or should I charge what it’s going to cost me to replace it?’ The gold market is putting pressure on the Rolex market and consumers may see higher prices before summer’s end,” says Dayan.

For more information about the impact of rising gold prices on the used Rolex watches and the preowned market, contact Avi Dayan, owner of San Francisco-based A&E Watches at (415) 437-3263.

Focus: Used Rolex watches