The news that Rolex is raising prices by up to 7% in the UK should be no surprise to anyone.
Inflation is soaring worldwide, affecting everything from energy prices to wages and material costs.
Add to that the devaluation of the pound against the Swiss franc, which pushes up import prices; and the devaluation against the U.S. dollar, which creates a price differential between major markets, making it cheaper to buy in that country compared to the U.S. or any other country whose currency isa pegged to or tracks the dollar, including oil-rich Middle Eastern countries. 
If the UK government reinstates the instant VAT rebates that non-EU shoppers used to get, we could have a flood of high-spending tourists snapping up bargains in the summer because of the weakening pound.
Conversely, I’ve been crunching some numbers on the narrowing gap between replica Rolex prices at authorized dealers and on the secondary market.
I’ve reported extensively on the sharp drop in prices on the secondary market for Rolex’s most popular steel tool watches and AP, and Patek Philippe watches since the first quarter.
That trend continues, with data from used watch specialist Subdial showing fake Rolex prices down 2.8% in the last 30 days, meaning the difference between retail and market prices has been shrinking.
In the case of the GMT Master II Ref. 126710BLRO (the steel watch with the Pepsi dial), the difference has narrowed from around £14,000 in March this year to £8,734 today.
My view, based on anecdotal evidence, is that the Subial is overpriced, so that the delta may be narrower, but the trend is instructive.
The steel Patek Philippe GMT is red and has a long waiting list (or expression of interest list, as the Swiss watch company recently renamed it).
Slightly easier to buy is the fake Rolex Submariner with date, and model: 126610LN. 126610LN, where the difference between the retail price and the secondary market price almost disappears.
According to Subdial, the secondary market price is down to £10,743 today, compared to £8,450 at authorized dealers, a difference of only £2,293. This gap could disappear if Subdial’s prices are on the high side.
The same is happening with Patek Philippe prices, which increased by around 5% on September 1 at retail in the UK and EU, a spokesperson confirmed to WATCH PRO today.
If you do want to sell any of the replica watches we’ve seen here, you’ll get at least 20% of the price as a trade-in or sale to a pre-owned specialist like Watchfinder or Watchmaster.
These price drops are a welcome sign that sanity is returning to the secondary market and that a large number of speculators and speculators who have been bullying authorized dealer salespeople might as well find something better to do.
It’s a great feeling for watch enthusiasts if their imitation Rolex or Patek Philippe purchases retain their value or even rise slowly over time. Still, the recent shortage and speculation have created a more unpleasant atmosphere around these brands and their retailers.
A rebalancing is long overdue, and I hope the market can find a happy balance that rewards watch lovers, not speculators.
