Gold fever pushes some vintage luxury watches to the melting furnace

Rising gold prices have led to more cases of vintage luxury watches being dismantled and melted for their gold content. Some watches contain solid gold or gold-plated parts, prompting dealers and individuals to scrap them for bullion. Collectors and brands are concerned about impacts on the market and the availability and valuation of rare models.

Higher gold prices boost demand for scrapping gold-bearing items, which can support bullion markets. The dismantling of vintage watches raises concerns for collectors and brands, potentially weighing on the secondary market and related equities. Effects on FX and crypto are judged limited and indirect.