Focus: Gold fever sends some vintage luxury watches to the melting furnace

Swatch groupAG

13/06/2026 09:00

    * Value of a watch's gold content can outstrip its resale
price
    * Gold price is double the average of 2024
    * Mid-priced models from Omega, TAG Heuer more exposed than
high-end Rolex, Patek watches
    * Some experts rue the loss of classic timepieces 

    By Alessandro Parodi and Ben Makori
    LONDON, June 13 (Reuters) - Omega's Constellation watch has
been flashed in campaigns, movies and at the Met Gala by stars
like George Clooney and Nicole Kidman, turning it into a symbol
of luxury and glamour.
    But with gold prices near record highs struck in January,
some such classic watches are being melted down as the value of
their metal content outstrips their resale worth.
    Used models by the likes of Omega and LVMH's  LVMH.PA  TAG
Heuer are most hit by the trend, according to Reuters interviews
with over a dozen traders, industry experts, and investment
advisers.
    British dealer Jon White of Gold Traders melted down an
18-carat late-1970s Constellation in excellent condition in May,
one of dozens of mainstream luxury watches he has had scrapped
this year as demand for investment gold has risen.
    "Beautiful watch. But in reality, had the customer consigned
that to auction, what would they have achieved?" White, who also
manages an auction house, told Reuters.
    The gold content of the Constellation watch, one of many
models produced by Swatch-owned  UHR.S  Omega, was worth £5,750
($7,749), 35% more than its estimated £4,000-4,500 auction
value, White said.
    James Lamdin, founder of Watches of Switzerland's  WOSG.L 
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."
    Spokespersons for Swatch and Rolex said they would not
comment for this story. LVMH, Richemont, Patek Philippe and
Audemars Piguet did not respond to requests for comment.
    
    LIQUID GOLD
Gold prices surged to a record $5,600 an ounce in January as
geopolitical concerns and trade worries pushed investors towards
safe-haven precious metals. Gold now hovers around $4,200 per
ounce, almost double its 2024 average. 
    The market price for used watches has not moved in the same
way, however.
    "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 showing how many luxury watches
are being melted. World Gold Council data shows overall gold
recycling in the first quarter rose 5% to 366 tonnes, while gold
jewellery demand rose 31% in value to $47 billion. 
     
    Watches can hold anything from a sliver of gold to more than
200 grams, meaning their scrap value can run into tens of
thousands of dollars. In an Omega Constellation, the gold can be
found in the case and the strap.
    With gold expected to reach between $5,400 and $6,300 an
ounce this year, the pressure to dismantle some watches will
continue, especially as traders that resell them must cover
costs and the expense of providing a warranty.
    New watches that are over-produced might also be melted
down.
    "I've seen a lot of totally mediocre watches get melted
down," said Lamdin. "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 RESALE TRAP
High-end brands that tightly manage new production like
privately owned Patek Philippe and Rolex command the highest
premiums over melt value, three industry experts said. 
    For some models "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. 
    Rolex accounted last year for 61% of the sales value of new
Swiss watches priced above 3,000 Swiss francs ($3,770), up from
57% in 2023 despite lower volumes, according to Vontobel.
    Less exclusive brands like TAG Heuer, Breitling and Omega
struggle to command high new retail prices, however, as buyers
can buy a second-hand timepiece for much less.
    Models like Omega's Speedmaster often depreciate sharply
once sold, exposing them to scrapping, three experts said.
     
    TO SELL OR NOT TO SELL
    Higher gold prices motivated retired New York engineer
Mitchell Talisman to sell two gold watches and a chain
containing a combined 35 grams of gold with 58% purity for
$2,660 cash in December.
    "I'd had a bunch of stuff sitting in a safety deposit box
for over 10 years," he told Reuters.
    For some owners however, the idea of selling a watch only
for it to be melted by a dealer is too much to bear.
    "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."
     
    ($1 = 0.7421 pounds)
    ($1 = 0.7873 Swiss francs)

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Gold recycling volumes soar near COVID-19 pandemic boom    https://reut.rs/4x9KHbT
Gold rally supports Patek Philippe Nautilus' second-hand
valuation    https://reut.rs/4uG4fCp
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Alessandro Parodi in Gdansk, Editing by Lisa Jucca
and Alexandra Hudson)
((mailto:Alessandro.Parodi@thomsonreuters.com;))