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Outside of the fact that an 8mm WW collet can hold a very small diameter shaft there is no particular advantage to the collet. The ER-16 collets function beautifully within their range and each collet can grip properly within its gripping range. This is not true with a WW collet. If the shaft is too small for the collet the part will not turn true. The situation you have now is ideal as your WW lathe is perfectly suited for small watch size work.