Classic luxury watches once treasured as status symbols are increasingly being sent to the melting pot rather than the auction room, as soaring gold prices mean the precious metal inside some timepieces is now worth more than the watches themselves.
Models including Omega’s Constellation, famously worn by George Clooney and Nicole Kidman, are among those being scrapped for their gold content, according to insights gathered by Reuters from more than a dozen traders and industry experts. The trend is particularly affecting used watches from prestigious but less exclusive brands such as Omega and LVMH-owned TAG Heuer.
British dealer Jon White, of Gold Traders, melted down an 18-carat late-1970s Constellation in May despite its excellent condition, one of dozens of high-end watches he has scrapped this year as demand for investment gold has surged. “Beautiful watch. But in reality, had the customer consigned that to auction, what would they have achieved?” White told Reuters. He said the gold content of that particular Constellation was worth £5,750, around 35 per cent more than its estimated £4,000 to £4,500 auction value.
James Lamdin, founder of Watches of Switzerland’s second-hand unit Analog Shift, said melting was “primarily happening with contemporary pre-owned and also with older vintage watches that are not already collectible.” He added that significant numbers of unsold, brand-new watches are also being destroyed for their metal content. “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. But when you have something that’s vintage and rare and has some story or some patina, that’s where it becomes a short-sighted tragedy.”
The driving force behind the trend is the gold price itself, which surged to a record $5,600 an ounce in January amid geopolitical tensions and trade concerns, and now hovers around $4,200 an ounce — almost double its 2024 average. The market value of used watches has not kept pace with this increase. Watches can contain anywhere from a sliver of gold to more than 200 grams, found in cases and straps alike, meaning their scrap value can run into tens of thousands of dollars. With gold prices forecast to reach between $5,400 and $6,300 an ounce this year, pressure to dismantle certain models is expected to continue, particularly as resellers must factor in the cost of providing warranties.
World Gold Council data shows overall gold recycling rose 5 per cent to 366 tonnes in the first quarter, while the value of gold jewellery demand rose 31 per cent to $47 billion over the same period, though no official figures exist specifically tracking how many luxury watches are being melted down.
Adrian Hailwood, a specialist in horological history, expressed regret at the trend. “I find it very sad, because obviously once something has been melted, it’s gone forever,” he said. He noted that for some owners, the prospect of a watch being destroyed after sale is simply too difficult to accept. “It may be a family piece, it may be their first watch,” he said. “They don’t like the idea of it being destroyed, so they keep it.”
The pressures vary significantly between brands. Privately owned manufacturers that tightly control production, such as Patek Philippe and Rolex, continue to command substantial premiums over their melt value. “The wait lists are astronomical. You’re talking anything from two to eight years,” said Simon Lazarus, head of PR and content at online luxury watch platform Chrono Hunter. According to Vontobel, Rolex accounted for 61 per cent of the sales value of new Swiss watches priced above 3,000 Swiss francs last year, up from 57 per cent in 2023, despite selling fewer units. Less exclusive brands such as TAG Heuer, Breitling and Omega, by contrast, struggle to maintain high retail prices when buyers can purchase comparable second-hand models for considerably less, with three experts noting that models like Omega’s Speedmaster often depreciate sharply once sold, leaving them particularly exposed to scrapping.
For some, rising gold prices have proven a straightforward financial opportunity. Retired New York engineer Mitchell Talisman sold two gold watches and a chain containing a combined 35 grams of gold at 58 per cent purity for $2,660 in cash in December. “I’d had a bunch of stuff sitting in a safety deposit box for over 10 years,” he told Reuters.
Spokespersons for Swatch and Rolex declined to comment for this story, while LVMH, Richemont, Patek Philippe and Audemars Piguet did not respond to requests for comment.
