Does adding diamonds reduce a Rolex’s value? to a Rolex can transform the precision timekeeper into a work of art. While some argue that a watch with aftermarket diamonds can depreciate in value, this is not always the case. In fact, Rolex diamond encrusted watches are sought after by many collectors.

The key is the quality of the diamonds and the craftsmanship of the customization. While a well-executed Rolex with diamonds may increase in value, the opposite is true for low quality, aftermarket diamonds that are poorly placed and damage the watch. Additionally, modifying a Rolex without the proper authorization from Rolex can void the warranty and decrease its value.

Having said that, a Rolex with factory diamonds can still increase in value over time. This is largely due to the fact that Rolex’s grading system for their diamonds is stricter than that of the aftermarket, and a genuine diamond from Rolex will have a higher quality grade.

Diamonds and Values: Debunking the Myth of Rolex Depreciation

This is evident when looking at historical retail prices for Rolex watches over the years. For example, the Rolex Explorer I Steel & Gold (with a refinished dial) has increased in value far more than the average inflation rate over the last 50+ years. Similarly, a Rolex Datejust two-tone with a new Caliber 3035 and original sapphire crystal has seen a significant price jump as well. This is due to the rarity of the reference, combined with the upgrade to a modern movement and a sapphire bezel.