History of Rolex

Rolex has a long and successful history and it is only just over a century old. In 1905 Hans Wilsdorf set up shop as a watch merchant in London's famous Hatton Garden. He formed a partnership with his brother in law Alfred James Davis to create Wilsdorf & Davis. The two men traded in specialist watches and frequently introduced new products to the market. They created watches using imported movements from Switzerland, with the cases made in London. At this time it was often the retailer's name that was signed on the dial and movement of a watch, but Wilsdorf recognized the need for a trade name to continue the success of his business. So in 1908 he came up with the name Rolex, chosen because it was a short word that would not take up too much room on the dial, was memorable, and more importantly recognizable and pronounceable in any language. After the First World War the company moved to Geneva because it was too expensive to import movements from Switzerland due to import tariffs. It was then that the company officially became The Rolex Watch Company.

Rolex have also helped to develop the wristwatch to what it is today. In their time they have registered many patent designs. One of their biggest accomplishments was in the early 1920s with the design of the 'Oyster' case. This was one of the first waterproof watch cases and the patents for the 'Oyster' case and waterproof crown were granted in 1926. These designs can be seen throughout many of today’s Rolex models.

What to look for when buying a Rolex

Collector's looking to purchase their first Rolex do not necessarily need to have a large budget. A vintage stainless steel Rolex Precision from the 1940s and 1950's can be picked up from auction at a starting price of £400–500 (with commission), in good condition.

Whilst the watch market has historically been considered a man's world, women too are now at the forefront of watch buying and collecting. For several years now, it has been the height of fashion for women to own and wear man sized watches. One result of this has been that small ladies watches from previous decades and fashion eras can now be picked up for a song. A delicate ladies 9 carat gold Rolex bracelet watch from say the 1960s or 1970s watch can be purchased for a little over £300. This is a fraction of the price of a modern day equivalent watch, making it an attractive opportunity for someone who wants to own and wear a gold vintage Rolex.

Before making a purchase it is imperative to do some research first, by checking current prices being asked by dealers as well as auction house estimates and sales results. Due to the massive appeal of Rolex watches, they are always highly competed for at auction, so bagging a cheap bargain is not very likely, with the most popular models making hammer prices not far below dealer retail prices. Conversely this adds to the appeal of Rolex watches, as they continue to hold their value as well as, if not better than, many other asset classes.

This leads to fierce competition in the sale room, especially for modern Rolexes, where buyers can hope to pick up examples for about a third of the retail price. Sports models such as Submariners, GMT-Masters and Daytonas are highly sought after and demand higher prices. However, basic models such as the Datejust can be easily overlooked. The Datejust is a recommended entry level model to new collectors. It's classic design is timeless, can be worn for any occasion and will never go out of fashion.

The downsides for the unwary buyer is that the popularity of Rolex watches means there are many traps to fall into. Rolex is one of the most commonly faked and copied brands of all. Fakes and replicas of current models are very common, but those looking to collect vintage examples also need to be wary. Rare vintage models can be a lot more valuable than the current model, and it is not unknown for movements to be married to the wrong cases, or highly rare and desirable enamel dials to be used to embellish the wrong model, or reference numbers to be altered in attempts by the unscrupulous to bag a huge profit from the unwary. If something sounds too good to be true, then it usually is.

Thanks to the internet there are a great deal of resources available to new and experienced collectors alike. There are many websites and forums dedicated to Rolex and their specific models. Forums are a great place to ask questions as collector's are keen to share their knowledge. This knowledge pool helps collectors and watch industry professionals protect the market and limit the number of fakes and made up vintage models on the open market. You can also look to see how much similar watches sell for to make sure you are spending your money wisely. Alongside the internet, there are many well researched reference books about Rolex which can provide a foolproof guide, as well as detailing the history behind the development of Rolex models and highlighting those models with limited production numbers.

There really is no better experience than handling Rolex watches in person. This gives you the best idea of how a Rolex should look and feel. An auction house is a great place to visit for this experience. The auctioneer will have already done all the research and authentication for you, and auction house watch specialists will only be too happy to share their knowledge with you.

Ideally you want to inspect the watch in person before you make a purchase. This is so you can satisfy yourself with the condition and the authenticity of your planned purchase. Rolex watches are stamped with a reference number which helps to identify the model. You can research these numbers on the internet, or double check them with some of the standard Rolex reference books, helping you make sure that the watch matches other watches of the same number. Be sure to ask the seller plenty of questions to help you satisfy yourself with authenticity.

If you are lucky enough to find yourself a watch with a box and paperwork this can be a great bonus. This can add value to a watch as it helps complete the history of the watch. Be sure to check that the box is of the same period as the watch and that the serial number on the watch and the paperwork correspond. 

Provenance is another factor that can hugely affect the price of a Rolex. Knowing who the previous owner of a Rolex is or how it came into their possession is always of interest to a collector. This is why military watches usually carry a premium. The idea that a watch may have been used in military operations adds to its appeal. As these military watches are usually ordered by the military in small numbers, this makes them rare and hard to come by. Quite often these watches would have been damaged or lost, therefore limiting the number available on the open market, and adding to the premium prices they command.

A great example of this was Lot 120 from Dreweatts Fine Jewellery, Watches & Silver auction on the 15^th March 2017. This was a Military Submariner double reference 5513/5517. The vendor of this example was a scientific officer for a trials team at the Admiralty Underwater Weapons Establishment on Portland Dorset. He was issued with two Rolex Submariners for the use of himself and his team. This was to save them from damaging their own personal watches. After several trials the watches were locked away in a drawer in the laboratory for safe keeping. Months later the watches had vanished and as the vendor was responsible for them, he had to pay for their loss. When moving laboratories one of these watches was found in another locked drawer. The watch was offered for auction and was accompanied by the receipt paid for the loss of the watch. This fine example achieved a hammer price of £90,000 against an estimate of £40,000-60,000 (+fees).

Some civilian Rolex models might have been produced for a short period of time, before a change to the dial or bezel was made. One example is the Rolex 'Red Submariner', with text on the dial in red which was only produced for a two year period.

Condition can be key when considering a Rolex purchase, and applies to both vintage and current models. Some collectors will simply just want to own an example of a particular model, where others will only want the best examples for their collections.

When considering a Rolex as a potential purchase, here are some of the most important factors to take into account:

1. Are the dial, hands, movement and strap/bracelet original to the watch, or have they been replaced or modified?
2. Does the serial number tie up with the period of the watch?
3. Does the paperwork or box tie up with the watch?
4. Does the watch require any repair work and how much will this cost?
5. Does the watch appear as old as it is? The hands should wear as quickly as the dial for example.

Collectors look for the watch and its constituent parts to be original to the watch as far as possible. If anything has been replaced then this can affect the price drastically, and more often than not collectors prefer an aged original dial to a newly replaced or restored dial.

Some people buy watches for their investment opportunity, but it is difficult to predict which models will become collector’s pieces in the future. For example, when the Daytona was first released in 1963 it was not a huge commercial success for Rolex. Now early examples with the coveted 'Paul Newman' dials have become a ‘Holy Grail’ for collectors and they now fetch some of the highest hammer prices for Rolex watches at auction.

There has also become a trend for collecting items other than just watches produced by Rolex. Items such as advertising, display and gifts have also become popular among collectors. Some of these items were never produced to be made available among the public, but sometimes they were presented as gifts. For example, Lot 352 from our Fine Jewellery, Silver and Watches auction on the 27 November 2019 is an Italian silver coloured box, chased with a Hotel Particulier and sold for a hammer price of £1,100.

CONSIGN TO A FUTURE AUCTION
To consign to a future auction or to arrange a free auction valuation, please contact Nick Mann at: watches@dreweatts.com

Or complete our free online valuation form here.

UPCOMING AUCTIONS
14 October 2020 | Jewellery, Silver, Watches, Pens and Luxury Accessories
15 October 2020 | Jewellery, Silver, Watches, Pens and Luxury Accessories | Part Two
25 November 2020 | Fine Jewellery, Watches and Silver

View upcoming auction calendar