LONDON, U.K.: Surging gold prices are prompting dealers and owners to melt down some vintage luxury watches, as the value of their precious metal content increasingly exceeds what they can fetch on the resale market. Industry traders, watch specialists and investment advisers said that used gold watches from brands such as Omega and TAG Heuer are among those most affected by the trend, with some classic timepieces being scrapped despite their history and condition. British dealer Jon White of Gold Traders said he melted down
an 18-carat Omega Constellation from the late 1970s in May, one of dozens of luxury watches he has scrapped this year amid growing demand for investment gold. “Beautiful watch. But in reality, had the customer consigned that to auction, what would they have achieved?” White said. According to White, the gold contained in the Constellation was worth about £5,750 ($7,749), significantly more than its estimated auction value of £4,000-4,500. The trend highlights how sharply gold prices have risen. After reaching a record $5,600 an ounce
in January amid geopolitical tensions and trade concerns, gold remains near $4,200 an ounce, almost double its average price in 2024. Watch resale values, however, have not increased at the same pace. James Lamdin, founder of Analog Shift, the second-hand division of Watches of Switzerland, said melting was “primarily happening with contemporary pre-owned and also with older vintage watches that are not already collectible.” Industry observers say the practice is most common among brands and models that do not command strong premiums in the secondary
market. “I find it very sad, because obviously once something has been melted, it’s gone forever,” said Adrian Hailwood, a specialist in horological history. There are no official figures on how many luxury watches are being melted down. However, World Gold Council data showed overall gold recycling rose 5% in the first quarter to 366 tonnes, while gold jewellery demand increased 31% in value to $47 billion. Experts say the pressure could continue if gold prices remain elevated. Gold is expected to trade between $5,400
and $6,300 an ounce this year, increasing the incentive for dealers to dismantle watches whose resale values lag behind their metal content. Lamdin said even relatively new watches can be affected when supply exceeds demand. “I’ve seen a lot of totally mediocre watches get melted down,” he said. “There’s a lot of unsold overstock in the Swiss market. And those watches are basically brand new, unworn, and they’re just getting stripped down. they made too many of them.” High-end brands such as Rolex and Patek
Philippe remain less vulnerable because their watches often command substantial premiums above melt value due to limited supply and strong demand. Still, some owners remain reluctant to part with watches that carry sentimental value. “It may be a family piece, it may be their first watch,” said Hailwood. “They don’t like the idea of it being destroyed, so they keep it.”
gold prices, luxury watches, melting down watches, Omega Constellation, TAG Heuer, scrap metal, watch resale market, World Gold Council, investment gold