Why the dive in pre loved WG and YG watch prices?

[cruvon]

I was looking at prices of pre loved Yellow Gold 16618 blue subs and White Gold 116519 Daytonas and though they are good looking watches, they seem to have dropped nearly 50% in value to todays RRP after a few years, instead of keeping up with inflation or being just a few K's less than todays RRP as is normally thought about Rolexes. Still perplexed why, would love to hear your thoughts on why the market prices them as such!

[jay1988]

It's not just "pre loved". Precious metal Rolexes can be had at a good 20% discount from your AD if you have a good relationship. I've heard as high as 25%.

As to why? Well maybe there isn't that much demand. If you want a gold watch, I doubt you want it to be second hand. Kind of diminishes the wow factor for some people. I would happily take a 5th hand gold Rolex though but I'm trying to think from the perspective of someone super rich. If you're showing off in front of your friends you don't want to be saying you bought your gold Rolex used.

I was talking to a SA at an AD who said that some precious metal watches sit in cases for years. He knew that my budget was £6k so it wasn't like I was a potential customer for those watches.

[AK797]

Originally Posted by jay1988

As to why? Well maybe there isn't that much demand. If you want a gold watch, I doubt you want it to be second hand. Kind of diminishes the wow factor for some people. I would happily take a 5th hand gold Rolex though but I'm trying to think from the perspective of someone super rich. If you're showing off in front of your friends you don't want to be saying you bought your gold Rolex used.

This is what happened to me. I was initially looking for a preowned gold watch to save some money but after seeing a couple with marks and dings I then thought if youre going to spend so much cash you might as well have one unworn and new. So Ill be buying with a 30% discount from a trusted UK seller, but if I could only buy from an AD for 15-20% off I would probably go used due to the poor resale which I always factoring in when tying up my capital.

[mcorliss]

Though some precious metal feel nice and have unique dials, in general, I think a person is a dope for paying 3-4 times the price as for steel models.

Not casting stones because there are a few that I really like and may actually break down to pay up for them myself.

[looking to buy]

Originally Posted by mcorliss

... I think a person is a dope for paying 3-4 times the price as for steel models.

Hmm never thought of myself as a dope. May need to reconsider.

[Billywiz]

Originally Posted by mcorliss

Though some precious metal feel nice and have unique dials, in general, I think a person is a dope for paying 3-4 times the price as for steel models.

Not casting stones because there are a few that I really like and may actually break down to pay up for them myself.

...another awe inspiring thread ...careful who you call a dope pal..says more about you than anyone else.

[HL65]

Originally Posted by mcorliss

Though some precious metal feel nice and have unique dials, in general, I think a person is a dope for paying 3-4 times the price as for steel models.

Not casting stones because there are a few that I really like and may actually break down to pay up for them myself.

Nice!

[LightOnAHill]

Originally Posted by mcorliss

I think a person is a dope for paying 3-4 times the price as for steel models.
:

This is an absolutely immature statement! really shows a bad reflection on YOU.

So what if it costs three times the steel model.

People don't just want the watch and don't think about the metal.


I always wanted a precious metal watch, and an 18k solid gold Rolex fit the bill.

Would a stainless steel watch fit that bill? No. It wouldn't.


Gold and platinum are special elements that require a supernova to create. Having some on your wrist, as a watch, really is something special.

Don't get me wrong, having steel on your wrist is special too because steel has done so much for humanity and a watch in that alloy celebrates that, but one is not better than the other or sufficient, as you allude...


I think you should rethink your thinking ...

[Daytona-Dan]

Originally Posted by mcorliss

Though some precious metal feel nice and have unique dials, in general, I think a person is a dope for paying 3-4 times the price as for steel models.

...And you're a dope for thinking like this. In terms of mark-up percentage, Rolex makes a heck of a lot more on SS watches because the base metal is next to worthless. At least gold/platinum has some residual value, an SS watch is worth nothing to a scrap metal dealer. I purchased mine because I wanted Gold and liked the dial, I don't care about resale value as I have no intention of selling, I bought it to wear, not to try make a profit. If you ever put on a gold watch one day, perhaps you'll understand until then, think before you speak next time.

I believe most of the problem comes not from supply/demand but more from the fact that you need to bite the VAT and AD discount before you even get close.

Let me explain: A company reselling a watch is supposed to add VAT to everything they sell which in the case of the UK is 20% so in order to sell a used watch the price needs to be not only lower than the discounted rate offered by the AD but also a further 20% lower just to cover the VAT. So a 2 year old watch would need to be less 15-20% to cover AD price discounts, then less another 5-10% to cover depreciation of a used watch and then they need to remove a further 20% for VAT which gets added back on top again. Add that all up and you're at your +50% mark and they still need to make a profit!!

The additional vat obviously doesn't apply for used items so selling privately gets you the most money, but you can still expect a good 30% less which on a £20-25K watch is a lot of money, enough to buy a new from AD SS model. This is enough to put most people off, the solution is to only buy gold/plat because you like the watch and intend to wear it for many years to come!

[datejusting]

They are just not that practical for every day wear because they scratch and dent so easily. If you try to polish out every scratch or dent they soon loose their original dimensions and new look.

[Billywiz]

Originally Posted by datejusting

They are just not that practical for every day wear because they scratch and dent so easily. If you try to polish out every scratch or dent they soon loose their original dimensions and new look.

Nonsense...sorry but so misleading

[Billywiz]

The recent recession has delivered more onto the used market pace.

[zion_rasta]

Guys, sometimes it is not about "having the money".

I can buy 4 gold GMT2c right now cash if I really wanted to. But they are not practical.

Stainless steel looks good and can take a beating.

Same reason I drive a $42k Toyota SUV, instead of a $70k SUV, but ride a $15k bicycle instead of a $2k bike.

It is all in what you like...

[Billywiz]

Originally Posted by zion_rasta

Guys, sometimes it is not about "having the money".

I can buy 4 gold GMT2c right now cash if I really wanted to. But they are not practical.

Stainless steel looks good and can take a beating.

Same reason I drive a $42k Toyota SUV, instead of a $70k SUV, but ride a $15k bicycle instead of a $2k bike.

It is all in what you like...

Why not practical...I dont understand...sure its softer that SS but it is not soft in the literal sense and yes I wouldn't dig up the roads in one however I wear this one every weekday for last 5 years...I travel extensively and work regularly 60 hours a week of those about 16 only behind a desk...I think it holding up well.

[zion_rasta]

Originally Posted by Billywiz

Why not practical...I dont understand...sure its softer that SS but it is not soft in the literal sense and yes I wouldn't dig up the roads in one however I wear this one every weekday for last 5 years...I travel extensively and work regularly 60 hours a week of those about 16 only behind a desk...I think it holding up well.

Impressive!

You must have your arm tied to your body ;-)

BTW that is a beautiful watch.

[Billywiz]

Originally Posted by zion_rasta

Impressive!

You must have your arm tied to your body ;-)

BTW that is a beautiful watch.

:)... Thats the point I dont.

[Daytona-Dan]

Originally Posted by Billywiz

Why not practical...I dont understand...sure its softer that SS but it is not soft in the literal sense and yes I wouldn't dig up the roads in one however I wear this one every weekday for last 5 years...I travel extensively and work regularly 60 hours a week of those about 16 only behind a desk...I think it holding up well.

I intend to buy my wife a YG 36mm DD hopefully before the end of the year and I can assure you, that will be the real test of how well gold holds up. I plan to post pics from new, then at 1 week, then 1 month, then 3, then 6, then 1 year etc.

She's particularly hard on her SS DJ and basically goes about her day as if there is nothing on her wrist at all, much to the demise of the poor watch. It still looks ok with lots of dings and scratches but nothing you can see from more than a foot away. Her WG bezel has a few bumps but nothing that deforms the shape of any of the grooves.

[Soflobusinessman]

Originally Posted by zion_rasta

Guys, sometimes it is not about "having the money".

, but ride a $15k bicycle instead of a $2k bike.

It is all in what you like...

I'd like to see what a $15 k bike looks like, post a pic!

[beshannon]

Originally Posted by Soflobusinessman

I'd like to see what a $15 k bike looks like, post a pic!

I spent more on my bike than I spent on my Sub

If you omit precious metals which do nothing for a bicycle, this one is probably worth its cost much like the watches we buy

Beru Factor 001
Price: $27,750
Beru’s Factor 001 bike boasts the latest technologies from motor sport, from aerospace and from the world’s top materials research laboratories for the F1 sort of experience on its two wheels unlike conventional bicycles. The high-tech bike features a fully integrated, multi-channel ergonometric data recording system to track your athletic performance by collecting and analyzing laboratory-quality data in a real-world environment.

[LightOnAHill]

Originally Posted by zion_rasta

Guys, sometimes it is not about "having the money".

I can buy 4 gold GMT2c right now cash if I really wanted to. But they are not practical.

Stainless steel looks good and can take a beating.

Same reason I drive a $42k Toyota SUV, instead of a $70k SUV, but ride a $15k bicycle instead of a $2k bike.

It is all in what you like...

+1

[superdog]

It's about the market. There are less buyers for the more expensive precious metals.

Not as much demand = lesser resale.

I've two WG pieces. Pure love for me. Much better value than my SS because I won't flip them. Ultimately it's helping me save money.

[kieselguhr]

Originally Posted by superdog

It's about the market. There are less buyers for the more expensive precious metals.

Not as much demand = lesser resale.

I've two WG pieces. Pure love for me. Much better value than my SS because I won't flip them. Ultimately it's helping me save money.

Seth hit the nail on this one. Supply and demand.
I personally have a preference for precious metal models.
The low resale value will suit me just fine.

[HL65]

I love non practical watches especially vintage ones with tropical/sunburst dials.

[Billywiz]

Originally Posted by SteelerFan65

I love non practical watches especially vintage ones with tropical/sunburst dials.

Ouch....Me to

[mrhy]

Originally Posted by SteelerFan65

I love non practical watches especially vintage ones with tropical/sunburst dials.

Wow that's precious no matter what its made out of..........beauty

[T. Ferguson]

I'd say it is a little misleading to make the comparison between used prices and MSRP. The biggest reason is that TT and precious can be had at a pretty good discount new, and this has been for a while. There just aren't as many players for the more expensive versions of the SS watches and Rolex certainly gets a big premium over and above the actual precious content so there is some wiggle room to discount. So MSRP is not a good reference point for the precious models.

Take a look at the TRF classifieds and check what discounts are on NIB SS versus those with precious content and I think you'll get my point.

[cruvon]

Originally Posted by SteelerFan65

I love non practical watches especially vintage ones with tropical/sunburst dials.

Now that's one that will always be higher than mrsp Ken, surely keeping rare variants of vintage Rolexes is one option.

[kilyung]

The real question is why aren't you buying gold watches if they're 50% off!?

[versatile1]

Originally Posted by kilyung

The real question is why aren't you buying gold watches if they're 50% off!?

Good point!

[cruvon]

Originally Posted by kilyung

The real question is why aren't you buying gold watches if they're 50% off!?

+1, that was what I thought too:)