Collectors Shift Direction: Gold Watches Now More Profitable for Recycling Than Resale

A shift in collector behavior is emerging as the price of gold surges, prompting the recycling of vintage gold watches from prominent brands. Owners and dealers are increasingly opting to melt down timepieces, particularly from brands like Omega and TAG Heuer, because the intrinsic value of the gold now surpasses the watches' market resale value.

This trend is driven by a significant increase in gold prices. Reports indicate that in 2025, gold prices rose by 44%, reaching levels not seen since 1980. The average price hit $3,432 per troy ounce, with a historical peak of $5,595 in January 2026. Analysts predict further price increases, projecting the average price could reach $4,920 per ounce in 2026, fueled by geopolitical tensions and economic uncertainty.

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Great watches. But if the owner had put them up for auction, how much would he have received?

John White, a British dealer, shared an example of melting down a late 1970s gold Omega Constellation. The gold alone was valued at approximately £5,750, about a third more than the watch's estimated auction value. "Great watches. But if the owner had put them up for auction, how much would he have received?" White questioned, explaining his decision.

James Lamdin, founder of Analog Shift, noted that both modern used watches and older models not yet considered collector's items are being recycled. Even nearly new watches from unsold inventory are sometimes destroyed. Brands like Rolex and Patek Philippe, which strictly control production and have high demand, remain more resistant to this trend, as their market value often far exceeds the gold content. However, watch historians like Adrian Haelwood express sadness, fearing the permanent disappearance of historical and rare vintage watches with unique stories and collector's value.

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I am very sad to see this, because after recycling, the item disappears forever.