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How can you tell a difference between a real Rolex watch and a fake one?

I was walking with my grandfather one day and I found a watch and on the inside dial it says Rolex, I'm trying to figure out how much it's worth.

http://tinypic.com/view.php?pic=33wozrc&...

could be real, but it's very old like a pensioners watch. maybe you should had it in, she could be heart broken.