Which watch brands are most impacted by this melting trend?

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Omega and TAG Heuer Brands Are Most Affected by the Trend of Melting Luxury Watches

The trend of melting down luxury watches for their gold content is primarily impacting brands such as Omega and TAG Heuer. This phenomenon occurs when the intrinsic value of the gold in a watch, especially in used models, surpasses its resale market value. This situation is exacerbated by high gold prices and the depreciation of certain watch models after their initial sale.
Omega's Constellation and Speedmaster Models Highlighted

Specific models from Omega, including the Constellation and Speedmaster, are frequently cited as being significantly affected. For instance, an 18-carat Omega Constellation from the late 1970s, in excellent condition, had its gold content valued at £5,750, which was 35 per cent more than its estimated auction value of £4,000–£4,500. This discrepancy highlights how the metal's value can outweigh the watch's collectible or resale worth.
TAG Heuer Also Faces Challenges in the Second-Hand Market

LVMH-owned TAG Heuer, along with other brands like Breitling and Omega, struggles to maintain high new retail prices for their timepieces. This is largely due to the availability of second-hand models at considerably lower prices. Consequently, when these watches are no longer considered highly collectible or when their market value depreciates sharply, they become candidates for being melted down.
Factors Driving the Melting Trend

The current market conditions, characterized by gold prices near record highs, are a primary driver for this trend. Gold prices surged in January due to geopolitical and trade concerns, pushing investors towards safe-haven assets. While gold prices have fluctuated, they remain significantly elevated, making the melt value of watches increasingly attractive compared to their depreciated resale market value. This economic pressure encourages the dismantling of watches, particularly those that are contemporary pre-owned or older vintage pieces not yet deemed collectible.

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Which watch brands are most impacted by this melting trend?

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