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Luxury Timepieces Scrapped as Gold Soars
14 Jun
Summary
- Gold prices near record highs are causing watches to be melted.
- Used models from Omega and TAG Heuer are most impacted.
- High-end brands like Rolex and Patek Philippe are less affected.
With gold prices nearing record highs, luxury watches, including models like the Omega Constellation, are being melted down. The intrinsic value of the gold content in these timepieces now frequently surpasses their market resale worth.
This trend primarily impacts pre-owned and older vintage watches that are not yet considered collectible. Dealers report that the gold in an 18-carat Omega Constellation could be worth significantly more than its auction value. Some industry professionals note that many "mediocre" or overproduced watches are being scrapped.
However, exclusive brands such as Rolex and Patek Philippe are less susceptible to this practice. Their tightly managed production and substantial waitlists for new models ensure their resale value remains robustly above melt value. Less exclusive brands may see their models depreciate, making them more vulnerable to being dismantled.
While official figures are unavailable, the rise in gold recycling indicates a broader market shift. For some owners, the emotional or familial value of a watch prevents them from considering such a fate, regardless of its scrap worth.
