There was a time when one had to take a trip to New York City to cross paths with a fake Rolex for $25. It was practically a tourist attraction: See the Statue of Liberty, catch a Yankee game, get offered a fake Rolex from a petty criminal. It used to be exciting to buy one when they were $25--the purchase was half the fun and it made for great cocktail party conversation. The problem is now they're everywhere: Online auctions, pawn shops, vintage second-hand shops and good charlatans are scamming people for real thousand-dollar Rolex prices.
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Take a look at the second hand. Is it ticking or is it sweeping? If it's ticking, that's your fake. A Rolex second hand sweeps around in one continuous motion. But beware, as of 2005, the good fakes have caught up to this technology.
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Look for the small engraved crown at the 6 o'clock mark on the crystal. Most fakes will have some sort of large, obvious version of a crown, but this mark on a real Rolex is almost impossible to spot with the naked eye.
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Look for the word "Rolex" and the watch's serial number engraved at 6 o'clock under the crystal on the area between the crystal and the dial. While many fake Rolex watches post-2005 have this feature, they're usually printed, not engraved.
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Most new Rolex models have an added model number engraved at the end of the watch end-link. This engraving includes the band model and two tiny Rolex crowns. Your good fakes will have something similar, but not all three indicators.
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If you're being sold an authentic Rolex (in good condition and in perfect working order) for anything less than $500, become suspicious. If it's in nice shape, it doesn't really lose a lot of appreciation, and in some cases, it increases in value.
