Reuters · Bangkok Post
Gold fever has people melting down luxury watches
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LONDON - The Omega Constellation watch has been flashed in campaigns, movies and at the Met Gala by stars like George Clooney and Nicole Kidman, turning it into a symbol of luxury and glamour.
Key facts
- Rolex accounted last year for 61% of the sales value of new Swiss watches priced above 3,000 Swiss francs ($3,770), up from 57% in 2023 despite lower volumes, according to Vontobel.
- The gold content of the Constellation watch, one of many models produced by Swatch-owned Omega, was worth £5,750 ($7,750), 35% more than its estimated auction value of £4,000 to £4,500 value, White said.
- World Gold Council data shows overall gold recycling in the first quarter rose 5% to 366 tonnes, while gold jewellery demand rose 31% in value to $47 billion.
- Higher gold prices motivated retired New York engineer Mitchell Talisman to sell two gold watches and a chain containing a combined 35 grammes of gold with 58% purity for $2,660 cash in December.
- Gold now hovers around $4,200 per ounce, almost double its 2024 average.
- LONDON - The Omega Constellation watch has been flashed in campaigns, movies and at the Met Gala by stars like George Clooney and Nicole Kidman, turning it into a symbol of luxury and glamour.
Summary
But with gold prices near record highs struck in January, some such classic watches are being melted down as the value of their metal content outstrips their resale worth.
Used models by the likes of Omega and TAG Heuer are hardest hit by the trend, according to Reuters interviews with over a dozen traders, industry experts, and investment advisers.