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Melanie,
Do you happen to know when the watch was last serviced?
Assuming it is water, then the watch may not be water-resistant anymore but the stains could also come from something else like an old gasket that is disintegrating or possibly some oil from the movement.
I am tagging @Archer our resident watchmaker to see what his expert take is.
PS: beautiful watch!
EDIT: I was just checking your resent posts and saw that you posted about an experience with “Armstrong Watch”. What was that about!?
It’s been serviced this week. I didn’t swim in it I promise! I paid about £400 for it. As it’s a 9ct gold watch I hope it hasn’t lost all its value - I admit I thought that was cheap.
Thank you. My leg hurts from kicking myself.