Britain's gold rush is very bad news for vintage and luxury watches
The high price of gold is melting horological history, finds Amie Elizabeth White.
The surge in gold prices is prompting the melting down of vintage and luxury watches as the value of the component metal exceeds that of the timepiece.
At the time of writing (July 1), the value of gold per troy ounce is about £3,153, up from £1,842 in June 2024.
‘The increase in scrapping this year has been substantial,’ says Jon White, founder of Gold Traders in Wiltshire and manager of a local auction house, ‘particularly for mid-tier luxury watches not yet considered collectors’ items.’
'What could emerge is a tussle between the value of craftsmanship, sentimentality and fiscal expediency'
Jon explains that a number of additional factors is driving people to the scrap heap over the salesroom: some strap designs are difficult and costly to adjust; the time it takes to value and sell on the second-hand market; the fact that dealers typic-ally offer about 30% below market value; and how readily available the model is.
Scrapping can prove more practical and may now yield a better sum. Meanwhile, for dealers, costs of servicing, operating and warranties required for resale make melting down more commercially viable.
Although top-tier investments (Patek Philippe is a sure bet) remain largely insulated, what could emerge is a tussle between the value of craftsmanship, sentimentality and fiscal expediency. ‘On the flipside,’ Jon says, ‘as the supply of particular models on the market reduces over time, one can assume the collectible value will increase. Still, it is awful to dismantle something of significance.’
