People are mass selling their luxury watches due to rising gold prices

The rising value of gold has led to a surprising trend among collectors and owners of luxury watches—some are now melting down their timepieces to extract the precious metal. This phenomenon, which has gained traction over recent months, highlights how economic uncertainty and geopolitical tensions have driven investors toward gold as a safe haven asset. As the price of gold continues to climb, certain vintage and second-hand luxury watches, particularly those made from gold, have become less valuable than the raw material they contain. This has prompted some individuals to sell or even destroy these watches, turning them into a more profitable resource.

The situation has been most notable with models from brands such as Omega and TAG Heuer, where the intrinsic value of the gold used in production has surpassed the market value of the watches themselves. One example comes from a British gold trader named Jon White, who in May melted down an 18-karat Omega Constellation from the late 1970s. Despite being in excellent condition, the watch’s gold content was valued at £5,750, significantly higher than its estimated auction value of between £4,000 and £4,500. “A beautiful watch. But realistically, what would the owner get if he had sold it on auction?” White remarked, underscoring the financial incentive behind the decision.

This trend is not limited to Omega alone. Experts note that older and second-hand models from luxury watchmakers are increasingly affected. These watches, while still desirable to some collectors, often lack the rarity or historical significance needed to command high prices on the secondary market. In contrast, the price of gold has surged due to global uncertainties, including trade disputes and political instability, leading many investors to seek refuge in bullion rather than stocks or other assets. The result is a growing disconnect between the value of the gold within the watch and the resale value of the watch itself.

Adrian Hailwood, a specialist in horological history, expressed concern over this trend. “It's very sad because once something is melted down, it's gone forever,” he said. His comments reflect a broader sentiment among historians and collectors who view the destruction of vintage pieces as a loss of cultural and historical heritage. While some see the process as a practical solution—especially for those looking to liquidate assets quickly—others argue that sentimental or familial connections to these items make them irreplaceable.

Official data on the number of luxury watches being melted down remains scarce, but figures from the World Gold Council indicate that gold recycling increased by five percent in the first quarter of the year, reaching 366 tons. This suggests that the practice is becoming more widespread, though it is likely underreported. Industry experts also point out that brands with strict production controls, such as Rolex and Patek Philippe, continue to maintain a premium over the value of the gold contained within their watches. For these brands, the emotional and collectible value remains strong enough to sustain their market position despite fluctuations in gold prices.

For some owners, the rise in gold prices presents an opportunity to sell long-neglected jewelry and watches, potentially generating significant income. Others, however, resist the idea of destroying cherished possessions, especially those with personal or family significance. This divide underscores the complex emotions tied to luxury goods and the challenges faced by individuals when making decisions about their value in a rapidly changing economic landscape. As the demand for gold continues to grow, the question of whether to preserve or melt down these timepieces will remain a topic of debate among collectors, investors, and historians alike.