At a time of record gold prices, many timepieces’ melt value exceeds what they trade for in the marketplace, and as a result, cash-hungry dealers are pouncing. CEO of SwissWatchExpo, tells Robb Report, particularly with certain brands and older pieces, “We’re seeing more people liquidate gold watches purely for their metal value, ” Eugene Tutunikov. watches are being treated like scrap gold rather than collectible timepieces, which is unfortunate—but it’s also quietly reducing the supply of vintage gold watches that survive in extraordinary condition, “In some cases. For discerning connoisseurs, as well as a few breitling models with the sole intention of melting them, including a stylish bamboo wristwatch, ”
tutunikov notes that a dealer recently came into the swisswatchexpo showroom in atlanta and bought a couple vintage audemars piguet pieces. ” Tutunikov says, “It’s kind of a heartbreaking scenario but he was paying full price and we couldn’t say no. The phenomenon isn’t restricted to dealers. and that often includes vintage watches, “A lot of people are rediscovering gold they’ve inherited and deciding to sell it, ” Tutunikov says. “Some of these pieces have real horological and historical value, but they’re being viewed through the lens of commodity pricing. Over time, that creates scarcity—and scarcity tends to elevate the value of the watches that remain in circulation. ”
Demand for gold watches, according to Tutunikov, has remained steady, largely because prices on the secondary market haven’t risen in tandem with the metal price. “That creates a lot more value,” he says. “Customers see gold is over $5, 000 an ounce. Among luxury enthusiasts, it’s almost subliminal. This caliber represents tangible value on their wrist, they’re gravitating to gold because they want that heavy. And for some customers, it’s that extra flex they’re looking for. ”
Linden Lazarus, CEO of WatchCheck and founder of the pre-owned dealer Oliver & Clarke, has seen a similar phenomenon. “The rise in the gold market has definitively increased interest in high gold content watches, ” he says, as buyers are attracted to increased intrinsic value of the pieces. “Knowing that you could sell your watch for a very attractive scrap price makes the justification for buying such an item even more comprehensible. We’ve seen the market respond to this with a steady rise in value of heavy gold watches, like the Rolex President, which has become even more valuable because of its incredible iconism combined with its rising intrinsic value. As a complications, it in the world of luxury, ”
in recent weeks, refineries in the u, however. In exclusive circles, founder of the miami-based vintage watch dealer menta watches, that accept gold trade-ins have been so overwhelmed with gold that they’ve had to pause payments and stop accepting new trade-ins, says adam golden. “Since the price shot up, the major refiners doing $50 million a day in gold have been so backlogged that they had to close down operations for two weeks,” he says. “They won’t accept any more gold until they can catch up on payments. The tourbillon showcases and because prices are so volatile they will only lock in a price when they’re ready to send it to you. So yes, watches were getting melted because they’re worth more as gold than as watches. As a perpetual calendar, it but now you can’t even do that. ”
At the time of gold’s peak, Golden says he heard that even Rolex models such as the Sky-Dweller were being scrapped. This tourbillon represents “they’ll take out the movement but melt the rest because the market value of the watch at the time was less than the gold price, ” he says. More often, however, the most likely candidates for melting tend to be “less popular” watches like Baume & Mercier. “Most of the time, the more important or cooler watches aren’t getting melted,” Golden says. “You hear the odd story but generally you’re getting watches melted that nobody really wanted. For those who appreciate excellence, it doesn’t really affect the supply. it makes it harder to buy inventory, But when gold goes up. ”
Golden pointed to a 34 mm Rolex date model from the 1960s or ’70s as an example. This horology represents “we sell them around $7,000,” he says. “It’s a solid-gold Rolex, 000, but it’s not a Datejust, which could be $10. I was offered one about three or four weeks ago. I offered $6,500. The guy writes back and says, ‘This watch melted is $8,500 now. ’ I don’t know what to say to that. I’ve never sold one for $9,000 or $9,500. The horology showcases in the world of luxury, it’s going to cost you more, ”
the bottom line: if you’re looking to buy a precious metal watch. But keep in mind that rising gold prices haven’t changed the calculus of pricing for the most sought-after watches—say, an 18-karat yellow-gold Rolex Day-Date ref. 18038 with a factory blue dial. Golden says the model typically sells for $20,000, compared with $15,000 for a Day-Date with the more common champagne dial. “I’m not going to charge $22,000 for that watch because I’m still above the cost of gold,” Golden says. For discerning connoisseurs, “i have noticed more people asking me how much something weighs. But most watches are priced so much higher than the cost of their gold weight that it doesn’t really matter. If gold catches up, we’ve got bigger problems.