Molten gold poured from crucible into ingot mold, scrapped luxury watch parts nearby.
The escalating price of gold is leading to an unusual trend in the luxury watch market: the scrapping of high-end timepieces for their intrinsic metal value. Watches from brands like Omega and TAG Heuer, particularly older or less sought-after models, are reportedly being melted down as the value of the gold content surpasses their resale market worth.
This phenomenon is driven by a surge in demand for investment gold, making the raw material more attractive than the finished product for some dealers and owners. While iconic brands such as Rolex and Patek Philippe, known for their strong brand equity, consistent demand, and lengthy waiting lists, appear less affected by this trend, mid-tier luxury watches are becoming targets.
The practice highlights a shift in market dynamics where the commodity value of precious metals can override the luxury and craftsmanship appeal of certain high-end goods. This situation poses a concern for collectors and enthusiasts who view these watches as valuable assets beyond their material composition.
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