There is more to identifying a fine watch than the manufacturer, style and serial number.

Manufacturers of luxury watches, (Rolex, Omega, Cartier, etc.) identify each model of watch by style and serial number. In addition, most manufacturers have separate model numbers for parts of the watch, such as the dial, bezel or band. All these numbers should be listed on the appraisal.

Watches may contain gemstones, and the gems (as well as the metals) can differ on bezel, case, dial, and strap. These variations may or may not be reflected in the style number, so an appraisal should describe in detail the metals and gems on each of these watch parts.

But this still begs the question, is the watch, and each of its parts, genuine?

Counterfeits and Clones

The most common fake is made by using a popular name-brand watch, such as Rolex, Omega, or Cartier, for example. Counterfeiters then dress it up by adding on non-Rolex parts, such as gemstone bezel, dial or strap.

Consider the following example based on personal experience: a popular model Rolex, the DateJust, is made of steel and gold. Counterfeiters might buy a steel watch and substitute some of its parts with gold, like the bezel or some links in the band, but the counterfeiters often use 14-karat gold, rather than 18-karat. Or, they might change the inside, for instance putting a 40-year-old Rolex movement into a recent-model watch case. The case appears new and bears a recent model number, but the old movement does not have today's quick-adjust features. Watches with any such after-market modifications are not regarded by the manufacturer as genuine Rolexes, and they don't have the value of authentic Rolexes. Or, in other cases, the entire watch is counterfeit. These are often fabricated in countries that don't recognize U.S. patents, copyrights, or intellectual property rights.

Watch manufacturers spend millions of dollars each year in efforts to foil counterfeiters. The market for fake watches is so abundant that there is even a sub-market, consisting of books and web sites, on how to recognize counterfeit watches. Most high-end manufacturers sell their products only through authorized dealers. Sometimes these authorized dealers, pressed for cash, may sell down their inventory to retailers who are not authorized. However, the watches sold by unauthorized dealers are regarded by the manufacturer as "used," even though they have not been previously worn.

Most fine-watch manufacturers do not allow their watches to be sold on the Internet. They explicitly state this on their web sites, and direct potential customers to authorized retailers. Nonetheless, counterfeit watches are blatantly and openly sold on the internet. Typically these watches are heavily discounted, but they do not carry the manufacturer's guarantee. The seller may give a limited warrantee on working parts, but does not warrant that all parts of the watch are genuine. Should the watch need repair at a later date, the owner will again be settling for second best. Fine-watch manufacturers will not work on watches "of questionable origin," that is, not from an authorized dealer.