Rolex Day-Date 36 Yellow Gold Strap Cognac (118138-0005)

WORLDTEMPUS - 16 August 2012

Dials deserve special mention when talking about the originality of vintage watches because, in my opinion, an original dial comprises approximately half to three-quarters of the watch's overall value. For example, a vintage Rolex Daytona with a normal original dial is worth only half of the same watch with an original Paul Newman dial. A Rolex Submariner from the 1950s with its original unmodified dial is worth double the same watch with a later Rolex replacement dial. Naturally, very few such early watches survive to this day with original perfect-condition dials, but such pristine original dials exist. These perfect watches command a substantial price premium over watches with degraded, but otherwise original, dials. Degraded original dials command more value than OEM (original equipment maker) replacement dials.

I mentioned last week how dials can be modified for aesthetic or functional reasons - known in the jargon as re-painted, as re-dialed, re-lumed, etc. - and dials that fall into this category have the least value. Fake dials, fairly prevalent on otherwise valuable original watches, have no value and are considered a serious demerit to the watch for obvious reasons. However, the other real parts of the watch have value, which is to be remembered for the serious collector who may have a collection of original parts accumulated over many years, which he or she can combine to form a watch comprising all original parts. So-called "put-together" watches are less than optimal because they are not original. As the years go by, however, and parts and/or entire watches get damaged, discarded or become otherwise unavailable, these spare original parts can result in a complete original watch that would otherwise be a broken or less-than-original watch. 

It's not surprising that the dial is the most important part of the watch because the dial is how the wearer interacts with the watch. A compromise with the dial is a compromise in the enjoyment of the watch, and ultimately in its value.
Cases and movements are also often less than completely original and, again, this can be for various reasons. Both are still critical factors in arriving at the value of a watch, however. Ideally, both the entirety of the case and movement will be original. Hopefully, the movement will have been serviced over the years and be running. If the movement needed or needs parts, OEM parts are preferred. However, the bottom line is that the watch is running. An original movement with some non-original parts is preferred to a broken movement that doesn't run. In more complicated watches, especially vintage Rolex Daytonas, the movements are sometimes not original. Vintage Daytonas were powered by Valjoux movements that were commonly found in other quality chronographs of the era. A vintage Daytona may have the Valjoux movement numbers 72B, 722, 722-1 or 727. Rolex made their own modifications to these movements and, of course, engraved the bridges. Given the value of vintage Daytonas, resourceful crooks have "put together" vintage Daytonas using real Valjoux movements from non-Rolex watches (without the Rolex modifications or with faked modifications), and a combination of other real or faked parts. Watch cases are not usually counterfeited, but you may find a Universal Geneve case masquerading as a Daytona case.

One other point needs to be made about cases and movements: Rolex stocks replacement cases and replacement movements for watches received for servicing with irretrievably compromised parts. These cases often have a distinct serial number starting with the numeral 44. Likewise, the movement in a vintage watch may be a replacement movement if the original was rusted or somehow destroyed. Knowing which movements belong in which watch is a matter of experience and building an excellent resource library; so many part numbers can get confusing for anyone.
The condition of the watch is the next most important variable in determining the watch's value, and sellers grade condition. Some sellers will use a number scale with 100 percent condition meaning the watch is as perfect as new. Other sellers use words like mint, mint+, near mint, excellent, etc. I like to believe most sellers make an honest attempt to describe their watches accurately. Not surprisingly, the seller often describes the condition of the watch more optimistically than the buyer will describe it once receiving it. So if you are buying a watch, make the guarded assumption that the seller's condition assessment is probably optimistic.
Obviously, the better the condition of the watch, the more valuable it is. As such, there are some specific things to pay attention to and there are tradeoffs. Every collector has to decide what is most important to him or her in this regard.

Specifically, when a watch case leaves a factory it is new, shiny and not diminished from being polished. Some collectors put a premium on a watch that has been polished so that its surfaces are clean enough to give the appearance of being like new. Other collectors prioritize originality over appearance. A watch case has a specific finish when it is new, and many watches have a combination of alternating finishes like mirror-polished, matte, sandblasted, or brushed surfaces. If a watch returns to its manufacturer for service, the watchmakers will restore the original finish, which is important. Using Rolex once again as an example, many Oyster cases are brushed on the top surfaces of the case, mirror-polished on the sides, and the case back is mirror-polished on its outer ring and brushed in the center. The center may be concentrically or laterally brushed. Send a watch to Rolex for service and it will come back looking perfect.
However, careless watchmakers have ruined hundreds of thousands of watches by applying a mono-finish when working on a case. I have seen far too many fully mirror-polished Rolex cases and all brush-finished Panerai cases that should have been polished. Fortunately, this is reversible, but remember: each and every time a watch case is polished, metal is eroded and lost forever. Also, check the case for serial and model numbers and other engraving or printing that should be on the watch. All should be crisp and legible. Many cases have been polished to the point where original markings are either illegible or removed altogether. On precious metal watch cases, look to make sure that the metal's hallmarks are present. If you are looking at what appears to be a gold or platinum watch, the case should have hallmarks. Finding a crisp, deep hallmark means the case is both made of the metal it purports to be made from and has only been lightly or never polished.

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COLLECTING - Vintage Value Equation (1)
COLLECTING - Vintage Value Equation (2)
COLLECTING - Vintage Value Equation (4)