Luxury Watch Owners Melt Down Timepieces for Gold as Prices Soar
Gold prices have surged to record highs in recent months, driven by geopolitical concerns and trade worries. This has led to a surge in demand for gold as an investment and safe-haven asset.
As a result, some luxury watches are being melted down for their gold content, rather than sold on the market. According to traders and industry experts, this is particularly true of mid-range models from brands like Omega, TAG Heuer, and LVMH's TAG Heuer.
Jon White, a British dealer at Gold Traders, said that he had melted down dozens of mainstream luxury watches this year due to the high demand for gold. In one case, an 18-carat late-1970s Omega Constellation watch was melted down, despite being in excellent condition and estimated to be worth between £4,000 and £4,500 at auction.
However, the gold content of the watch was worth £5,750, making it more valuable to melt down than sell on the market. According to James Lamdin, founder of Watches of Switzerland's Analog Shift unit, melting is primarily happening with contemporary pre-owned and older vintage watches that are not already collectible.