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I'd suggest a used watch. As an example, I just sold a vintage 14K yellow gold Longines for under $700. It was very small, had a diamond bezel and kept surprisingly good time. As noted, used ladies watches are not big sellers, so there are deals to be had. In my opinion, you won't find many small, elegant watches for a woman from the mass market brands and they aren't anything special in terms of their construction. It will be hard to find a decent Rolex in your price range, so I'd suggest looking at the less popular brands.
JR
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