20% to 30% below list price – you can get many luxury watches significantly cheaper on the gray market. Even the famous Omega Speedmaster Professional Moonwatch (ref. 310.30.42.50.01.001) costs about 28% less on the gray market than it does from the manufacturer. But rare and sought-after models can cost more than three times the official retail price. In this article, we explain why this is the case, what the gray market actually is, and which watches are particularly popular.
What is the gray market?
In relation to luxury watches, the term “gray market” refers to the trade in original watches outside the manufacturer’s official distribution channels, such as authorized dealers. Watches traded on the gray market thus bypass official distribution channels via “gray dealers.” Sounds dubious? It’s not, because trading platforms, also known as secondary markets, often offer lower prices and faster availability without waiting lists. In the luxury segment in particular, however, watch brands want to exert as much influence as possible on the distribution of their products. In practice, this means that manufacturers traditionally supply their authorized dealers and often determine which models are allocated and in what quantities. Only these authorized dealers can officially sell the watches in their retail stores or online stores.

Dealers and jewelers usually have to purchase large quantities of watches from the manufacturers and are also obliged to include less popular watch models in their inventory. This often means that authorized dealers are left sitting on their stocks.
How do gray market transactions work?
In order to be able to sell the surplus watches, dealers bypass the authorized distribution channels and sell the goods to other dealers who are not officially authorized. They then offer the new watches on their own sales channels at significant discounts – for example in their own stores or on online platforms such as Chrono24 – thus opening up the gray market. Gray market dealers frequently source watches from abroad. This offers several advantages. For example, particular models are less popular in certain locations and some countries have lower VAT, making it profitable to purchase a watch abroad and import it. The trade in second-hand watches also takes place on the gray market, and there is little or no regulation. For some years now, brands such as Rolex and Audemars Piguet have been buying pre-owned watches in order to service them and sell them to customers as “Certified Pre-Owned” watches with a manufacturer’s warranty. This business model is similar to the used car market, where major car dealerships also buy, refurbish, and ultimately resell their used vehicles. Important to know: In contrast to black market trade, every watch on the gray market is traded legally. The watches are genuine and often come with original papers and boxes. With second-hand watches, however, it is possible that individual parts, papers, or boxes have been replaced over the years or are no longer available. That’s why it’s particularly important in the vintage segment to do thorough research before buying and to contact the dealer if anything is unclear. Watches sold on the black market, on the other hand, are illegal and are usually counterfeit or even stolen. You should, of course, stay away from them.
Scenario 1: Cheaper Than at the Jeweler
Many watches are significantly cheaper on the gray market than at an authorized dealer. Depending on the model and reference, you can find discounts of 20-30%. The Carrera chronograph from TAG Heuer (ref. CBS2216.BA0041) presented in 2024 officially costs $6,870. The gray market price for this reference is around $5,450, which is more than 20% below the list price. A TAG Heuer Autavia with the in-house caliber Heuer 02 (ref. CBE511A.FC8279) is available on the gray market for a good $5,450. Compared to the official retail price of $7,180, you save around $1,730.

Non-limited standard models from Omega are also often cheaper. You can buy the Seamaster 300M diving ref. 210.30.42.20.01.001 on the gray market for just over $5,000. At an authorized dealer, however, you should plan on paying the list price of $6,800 – a hefty increase of 35%. If you’re interested in a Breitling AVI Ref. 765 1953 Re-Edition (ref. AB0920131B1X1), you’ll have to put $8,700 on the counter at official dealers. On Chrono24, this model sells for around $6,600 in unworn condition, a savings of around 25%.
Scenario 2: More Expensive Than at the Jeweler
Rolex sports models have been so desirable for years that their gray market prices are sometimes significantly higher than the official list prices. Stainless steel versions of the Daytona, GMT-Master II, and Submariner are particularly popular with watch enthusiasts. If you want to buy a particular Rolex, either you’ll be offered a model that is less in demand or you can expect long waiting times. If you can’t or don’t want to wait, you’ll have to pay a considerable surcharge. The current stainless steel Daytona with ceramic bezel (ref. 126500LN) officially costs $16,300 (as of December 2024). On the gray market, the model is more than twice as expensive, changing hands for roughly $33,000. The watch’s white gold counterpart with the reference number 126509 is “only” $2,900 more expensive at around $49,800.

The iconic Submariner diving watch officially cost $9,800 in the No-Date version (ref. 124060) at the end of 2024. At around $12,600, the gray market price for an example in mint condition is around 28% higher than the list price. The price performance of the GMT-Master II with blue and black bezel, popularly known as the “Batman,” is also remarkable. The variant with Oyster bracelet released in 2019 costs $11,500 at an authorized dealer. Gray market dealers sell this ref. 126710BLNR at an average price of $17,500 – a premium of more than 52%. Even more extreme is the price performance of the stainless steel Patek Philippe Nautilus. The list price for the three-hand ref. 5711/1A-010 was $29,000 shortly before it went out of production. On the gray market, you’ll often find offers between $118,500 and $147,000 now, a development that cannot be explained rationally.
How do manufacturers feel about the gray market?
In the luxury industry, manufacturers and brand owners like to maintain control. Upward or downward price fluctuations contradict this need for control, which is why the gray market is generally a thorn in their side. However, it’s a self-inflicted phenomenon that arises due to the large number of watches available. Some manufacturers such as Rolex, Patek Philippe, and Audemars Piguet have developed strategies in the past to combat the gray market and dry it up. The family-run brand Audemars Piguet – known for the legendary Royal Oak, among other things – has opened its own boutiques in recent years to break away from traditional distribution channels. Rolex bought out its own authorized dealer, Bucherer, in 2023. If you purchase a Rolex from Bucherer and already own a model from the manufacturer, they will offer to trade in your model. After an in-house overhaul, your old Rolex returns to Bucherer as a “Certified Pre-Owned” watch. This way, fewer unworn watches end up on the gray market. Furthermore, some companies are said to have blacklists of customers who immediately resell their newly acquired, rare luxury timepieces. Once you’ve made it onto such a blacklist, you slide way down the waiting lists. Some authorized dealers even wait a few months before issuing the watch’s warranty card, which is also meant to prevent a quick resale.
Can I buy a watch on the gray market?
The good news is: yes, you can access it without a second thought. Watches traded on the gray market are original and legal. With vintage and second-hand watches, however, you should get comprehensive information about the listed item before buying. Are the case, caliber, bracelet, dial, hands, and crystal still in their original condition? With older vintage watches, it’s especially common for parts like the strap or plexiglass to have been replaced at some point. Manufacturers like Rolex also replace damaged parts or polish scratches out of the case during servicing, which should be done every five to seven years. For some enthusiasts, this is already tarnishing the original condition of the watch. You should also be aware that some manufacturers do not provide warranties for gray market watches. Each brand can trace the exact country of origin of a watch and thus draw conclusions about the purchase. So brands can be pretty sure whether you bought your watches from an authorized dealer or on the gray market. However, it should be possible to pay for repairs, if needed.