Pre-owned Rolex prices 'could rise by 30%'

The cost of buying a pre-owned Rolex watch could be set to rise by up to 30 per cent before Christmas as gold prices continue to remain high.

The pre-owned luxury timepieces market is more buyer-friendly than purchasing a new watch because supply cannot be held back to inflate prices.

According to San Franciscan gemologist Avi Dayan, jewellers are able to restrict the inventory of Rolex watches they put on sale at any one time when merchandise costs are high but sellers in the used watch market do not have the same luxury.

"While the price of pre-owned 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," Mr Dayan explained.

"There is just no incentive for a used Rolex dealer to hold back. Typically there is lag time between rising prices in gold and higher costs for watches but eventually the lag time ends and the higher prices begin," he added.

Rolex has been making high-quality watches since 1905 and is widely regarded as the benchmark for luxury timepieces around the world. Many of the manufacturer's most famous designs are presented in gold.