Luxury watches, once symbols of glamor and status, increasingly face a grim fate: the melting pot. Iconic watches like the Omega Constellation, made famous by George Clooney and Nicole Kidman, are being scrapped for their precious metal content as gold prices soar.
With gold prices hovering around all-time highs, the metal's intrinsic value in some classic models now exceeds its resale value. This trend is particularly affecting pre-owned watches from prestigious brands such as Omega and LVMH's TAG Heuer, according to information gathered by Reuters from more than a dozen dealers and industry experts.
British trader Jon White of Gold Traders exemplified this shift in May when he melted down an 18-karat Constellation from the late 1970s, despite its excellent condition. This was one of dozens of high-end watches it scrapped this year, driven by growing demand for investment gold.
“Beautiful watch. But really, if the client had auctioned it, what would he have achieved?” White, who also runs an auction house, told Reuters.
The gold content of the Constellation watch, one of many models produced by Swatch-owned Omega, was worth £5,750 ($7,749), 35% more than its estimated auction value of £4,000 to £4,500, White said.
James Lamdin, founder of Watches of Switzerland's second-hand unit Analog Shift, said the melting was “mainly occurring with contemporary used watches and also with older vintage watches that are not yet collectible.”
Spokespeople 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.
Gold prices rose to a record $5,600 an ounce in January as geopolitical and trade concerns pushed investors toward precious metals as a safe haven. Gold is now around $4,200 an ounce, almost double its 2024 average.
However, the market price of used watches has not evolved in the same way.
“I find it very sad, because obviously once something melts, it's gone forever,” said Adrian Hailwood, a specialist in horological history. There are no official figures to show how many luxury watches are being melted down. Data from the World Gold Council shows that overall gold recycling in the first quarter rose 5% to 366 tonnes, while demand for gold jewelery rose 31% in value to $47 billion.
Watches can contain anything from a sliver of gold to more than 200 grams, meaning their scrap value can run into the tens of thousands of dollars. On an Omega Constellation, the gold is found on the case and strap.
With gold expected to reach between $5,400 and $6,300 an ounce this year, pressure to dismantle some watches will continue, especially as dealers who resell them must cover the costs and expense of providing a warranty.
New watches that are overproduced could also melt down.
“I've seen a lot of totally mediocre watches melt down,” Lamdin said. “There is a lot of unsold excess stock on the Swiss market. And those watches are basically new, unworn, and they are just being dismantled… they made too many.”
“But when you have something that's old and rare and has some history or some patina, that's where it becomes a short-sighted tragedy.”
High-end brands that closely manage new production, such as privately held Patek Philippe and Rolex, command the highest premiums on merger value, three industry experts said.
For some models, “the waiting lists are astronomical. We're talking two to eight years,” said Simon Lazarus, head of public relations and content at online luxury watch platform Chrono Hunter.
Rolex accounted for 61% of the sales value of new Swiss watches priced above 3,000 Swiss francs ($3,770) last year, up from 57% in 2023 despite lower volumes, according to Vontobel.
However, less exclusive brands such as TAG Heuer, Breitling and Omega are struggling to reach new high retail prices, as buyers can purchase a pre-owned watch for much less.
Models like Omega's Speedmaster often depreciate sharply once sold, exposing them to scrapping, three experts said.
Higher gold prices motivated retired New York engineer Mitchell Talisman to sell two gold watches and a chain containing a combined 35 grams of 58% pure gold for $2,660 in cash in December.
“I had had a lot of stuff stored in a safe deposit box for more than 10 years,” he told Reuters.
However, for some owners, the idea of selling a watch only to have it melted by a dealer is too much to bear.
“It may be a family piece, it may be your first watch,” Hailwood said.
“They don't like the idea of it being destroyed, so they keep it.”
