Gold has been on an extraordinary run. Between early 2024 and late 2025, prices surged from around $2,000 per ounce to over $3,000: a 50–60% jump in a relatively short window. By October 2025, gold crossed $4,300 per troy ounce for the first time in history.

For collectors, dealers, and manufacturers in the luxury watch space, this is more than a financial headline. It represents a structural shift that is reshaping how watches are priced, produced, and perceived.

Immediate Impact on Retail Pricing 

The effects were felt almost immediately at the retail level. Gold models from major Swiss brands saw far steeper increases than their steel counterparts.

Rolex gold references, for example, experienced price increases of up to 14% for 2025, compared to roughly 3% on steel models. The brand’s June 2024 adjustment closely followed a 17% rise in gold prices since January of that year, and increases have continued since.

Across the industry, most Swiss watchmakers have now planned price hikes of approximately 4–5%, directly tied to rising raw material costs.

The Hidden Pressure on Manufacturer Cash Flow

Retail pricing, however, only tells part of the story. The more severe pressure is happening behind the scenes in manufacturer cash flow.

Watchmakers must pay upfront for the full amount of material used in production. To manufacture 100 cases weighing 40 grams each, just 4 kilograms of gold, brands must typically commit five times that amount at the start of production. That equates to 20 kilograms of gold purchased before a single watch is delivered.

At historic gold prices, these upfront capital requirements become massive, placing real strain on production planning and liquidity.

Opportunity in the Secondary Market

For participants in the pre-owned and secondary market, these dynamics create a notable window of opportunity.

Historically, when brands raise retail prices, the secondary market adjusts with a six to nine month delay. During that gap, buyers can acquire gold watches before pre-owned prices fully reflect the increased underlying material value. Some investment-focused collectors are already leveraging this timing mismatch to their advantage.

Shifts in Material Strategy

Gold volatility is also influencing product development decisions. To manage risk while maintaining premium positioning, brands are placing greater emphasis on alternative materials such as ceramic, titanium, and carbon composites.

These materials allow watchmakers to sidestep gold price swings while still delivering exclusivity and innovation. Expect this trend to accelerate as brands seek balance between desirability and cost predictability.

Changing Buyer Psychology

At the consumer level, a psychological shift is underway. High networth buyers increasingly view gold watches not only as luxury items but as investment assets with intrinsic value.

When gold itself is appreciating, owning it in the form of a Rolex Day-Date or an AP Royal Oak becomes a dual proposition: brand prestige combined with exposure to the underlying metal.

What this means for you?

Gold is not disappearing as a cornerstone material in luxury watchmaking. However, its volatility is forcing adaptation at every level: from manufacturing and pricing to how collectors define value.

Brands, dealers, and buyers who understand these dynamics will be best positioned to navigate what is likely to remain a turbulent environment for years to come.