Key facts
- Gold prices have surged to near record highs, prompting some luxury watches to be melted down.
- The scrap value of the gold in watches now often exceeds their resale market worth.
- Models from brands like Omega and TAG Heuer are particularly affected.
- An 18-carat Omega Constellation watch's gold content was valued at £5,750 in May, significantly more than its auction value.
- Gold recycling increased 5% to 366 tonnes in the first quarter.
- Gold prices are expected to reach between $5,400 and $6,300 per ounce this year.
Gold prices have surged to near record highs, prompting a trend where some luxury watches are being melted down for their metal content. Brands like Omega and TAG Heuer are particularly affected, as the value of their gold often exceeds their resale worth. An 18-carat Omega Constellation watch, for example, had a melt value of £5,750 in May, significantly higher than its estimated auction value of £4,000-4,500. This trend is primarily impacting contemporary pre-owned and older vintage watches that are not yet considered collectible.
Overall gold recycling increased by 5% to 366 tonnes in the first quarter, according to World Gold Council data. While gold prices reached a record $5,600 an ounce in January and now hover around $4,200, the market price for used watches has not kept pace. Experts express sadness over the potential loss of collectible timepieces, noting that some watches can contain over 200 grams of gold. Gold prices are expected to continue their upward trend, potentially reaching $5,400 to $6,300 an ounce this year, which could further pressure owners to dismantle watches for their metal value.