The Omega Constellation once appeared in advertising campaigns, films, and famous events alongside stars like George Clooney and Nicole Kidman. This watch model has long been a symbol of luxury. However, with the recent surge in gold prices, some classic watches are being melted down. The value of the gold within them even surpasses the watch's resale price.

A Reuters survey of dealers, industry experts, and investment advisors indicates that pre-owned watches from brands like Omega and TAG Heuer are most impacted by this trend. Last month, Jon White, a gold dealer in the UK, melted an 18K Constellation, produced in the late 1970s, despite its excellent condition. This is just one of dozens of luxury watches he has melted this year as demand for gold investment increases.

"It's a beautiful watch. But realistically, if a customer takes it to auction, how much will they get?" White told Reuters. He stated that the gold contained in this Constellation was worth approximately 5,750 British pounds (7,749 USD), 35% higher than the watch's estimated auction price of 4,000-4,500 British pounds.

A luxury watch being melted at Hatton Garden Metals in London, 6/2026. Photo: *Reuters*

James Lamdin, founder of Analog Shift, the pre-owned watch division of retailer Watches of Switzerland, said that melting "mainly occurs with modern but used watches and classic models that are not yet valuable enough for collection."

In January, gold prices hit a record 5,600 USD an ounce as investors, concerned about geopolitical and trade situations, sought safe-haven assets. Although gold cooled afterward due to the Middle East conflict, prices have since risen for three consecutive sessions, now fluctuating around 4,300 USD. This level is almost double the average for 2024.

However, prices for used watches have not increased proportionally. "This is regrettable, because once something is melted, it's gone forever," said Adrian Hailwood, an expert in watchmaking history.

There are no official figures on the number of luxury watches being melted. Data from the World Gold Council (WGC) shows that global recycled gold increased by 5% to 366 tons in Q1. Meanwhile, the value of jewelry gold demand rose by 31%, reaching 47 billion USD.

A single watch can contain anywhere from a few grams to over 200 grams of gold, making their material value potentially tens of thousands of USD. For the Omega Constellation line, gold can be used in both the case and the strap.

With gold prices projected to reach 5,400-6,300 USD an ounce this year, the demand for disassembling some watch models is expected to continue. This is especially true as pre-owned watch dealers incur additional operating and warranty costs.

Even new watches that are overproduced can be melted. "I've seen many perfectly normal ones melted. The Swiss market currently has a lot of inventory. Those watches are almost brand new, never worn, and ultimately disassembled," Lamdin noted.

However, he also warned that melting an antique, rare watch that carries a unique story or historical significance is "a tragedy of short-sighted thinking."

According to industry experts, high-end brands like Patek Philippe and Rolex strictly control their production and typically maintain resale prices significantly higher than the internal value of their gold content. "Waiting lists for some models are incredibly long. Buyers may have to wait two to 8 years," said Simon Lazarus, PR Director of the online luxury watch platform Chrono Hunter.

In contrast, less exclusive brands such as TAG Heuer, Breitling, and Omega face challenges in maintaining high retail prices. Buyers can easily find pre-owned items at substantially lower costs. Some experts indicate that models like Omega's Speedmaster often depreciate sharply after sale, making them susceptible to being disassembled for their gold.

High gold prices prompted Mitchell Talisman, a retired engineer in New York, to sell two gold watches and a necklace in 12/2025. These items contained a total of 35 grams of 58% pure gold, earning him 2,660 USD. "I've had a lot of stuff in the safe for over 10 years," he said.

Nevertheless, many people find the idea of their watch being melted after sale unacceptable. "It could be a family heirloom, or their first watch. They do not want it destroyed, so they decide to keep it," Hailwood explained.

Ha Thu (*Reuters*)