By now you probably know that the Rolex Day-Date is one of our favorite models. Even within that legendary lineage, however, certain configurations stand out. This is unquestionably one of them.

Introduced in 1988, the 182xx generation marked an important evolution of the Day-Date. The present reference 18338, dating to 1989, is powered by Rolex's caliber 3155, featuring the highly practical double quickset function that allows the day and date to be adjusted independently. It is housed in the classic 36 mm 18k yellow gold Oyster case which, in our opinion, remains the perfect size for a Day-Date. Rather than the familiar fluted bezel, this example is fitted with a factory diamond-set bezel, complemented by matching diamond-set lugs that give the watch a far more opulent appearance without sacrificing the unmistakable proportions of the model.

As spectacular as the case may be, the dial is what truly defines this watch. Rolex produced only a very small number of these lavish factory pavé dials, and this example is among the most attractive we've encountered. The surface is entirely set with brilliant-cut diamonds, while the quarters are highlighted by baguette-cut sapphires, creating a beautiful contrast in texture and color. The applied gold cartouches carrying the Rolex signature and Day-Date designation seem to float above the sea of gemstones, while the correct closed-set hands complete the composition exactly as Rolex intended.

Condition is equally impressive. The case retains full, thick lugs with strong proportions, while the President bracelet shows virtually no stretch. Additionally, the watch is accompanied by an exceptional set of accessories: its original box, guarantee papers, regional sales receipt, and original hangtag. The receipt and (pricetag), issued in Germany in 1990, still displays the astonishing original retail price in Deutsche Marks. Adjusted for inflation, the watch would have retailed for approximately €85,000 today; a remarkable figure that illustrates just how extraordinarily expensive this configuration was when new. It also confirms that this lavish pavé sapphire dial was fitted by Rolex from the outset rather than added later. As the watch was originally delivered in Germany, it is fitted with the German day disc, adding another charming detail to an already exceptional package.