When is a gold watch a “real gold watch”?

Gold – for thousands of years, this noble, shimmering metal has exerted an incomparable fascination on people. Coveted as jewelry and valued as an investment, it plays a special role in the watch industry. But if a watch shimmers gold, this does not mean that it is a “real” gold watch. We explain which variants there are for a gold watch, what needs to be considered in terms of price and value, and which models are particularly in demand.

Gold or gold-plated? You should know these terms

A gold watch can get its shine in two ways: Either it is a stainless steel case covered with a thin layer of gold, or the case is made of solid gold. While the first case is referred to as gold plating, the solid gold variant is what is usually referred to as a “real” gold watch.

The “real” is deliberately placed in quotation marks: If high-quality models are gold-plated, this layer is made of the original material and not some other substance.

However, gold plating usually has an extremely low thickness – the designation “10 micron” on the case back, for example, means that the gold layer is 0.01 mm thick. This makes it clear that gold plating means a much lower material input of the expensive metal.

If we turn to the “real” models, the unit “carat” for the fineness often appears. One carat (kt) has the same meaning as “one of 24 parts”. Consequently, 24 karat gold means that the material mixture consists of 100% of the precious metal, although due to the never perfect purity is said to be 99.99%. A “real” gold wristwatch can have different proportions of the metal, with 18 kt (750 gold), 14 kt (585 gold) and 8 kt (333 gold) being the most common sizes. So even in the “real” range, the differences are large, but this hardly explains price differences:

For example, the Tissot T-Gold collection already offers 18kt models in the low four-digit range, while much more expensive watches from other brands often feature 585 blends.

Whether yellow, rose or white gold: the variety is wide

Although a gold watch is usually associated with yellow gold, there are elegant alternatives to choose from in the form of rose and white gold. For a closer look at the varieties and their differences, the Rolex Cosmograph Daytona is an excellent example, as the legend among chronographs is available in every conceivable variation – the case, bezel and bracelet may or may not be in the royal material.

Those who want to make a statement are best advised to go for yellow or rose gold, while white gold creates a more restrained appearance. Hardly distinguishable from silver in layman’s terms, it is a special alloy that has been stripped of its golden color due to the admixture of other precious metals.

Interestingly, because of its more difficult processing, it is even more expensive than “normal” gold.

If you want your luxury watch golden, you face a difficult decision, because almost all manufacturers offer their classics in a corresponding version.

The Omega De Ville as a real gold watch proves to be particularly stylish, because the model cuts an excellent figure on fine occasions anyway. However, as with all other manufacturers, a huge price premium is due compared to the steel editions.

Vintage models, for example, the Omega Constellation, are therefore considered an insider’s tip among lovers of the noble metal, since well-preserved masterpieces are available at much lower prices than new watches.

The price markup on gold watches: Why is it so high?

Whether in the shop window or on the Internet: If you observe the luxury watches of different brands, you immediately notice the enormous price differences between steel and gold watches. For example, the Rolex Cosmograph Daytona as a gold watch is about three times more expensive than the steel model.

In the case of the Omega De Ville, even five times that amount has to be factored in. With such differences, it is certain that they are not solely due to the higher material costs for gold.

Two other aspects are necessary to explain: on the one hand, the more difficult processing, and on the other hand, the intended exclusivity. Since gold is naturally much softer than steel, special techniques are required to process the material and manufacture the watch. Of almost greater importance is the exclusivity – part of the premium is paid simply to acquire something rare that few can otherwise afford.

The gold watch as an investment – better than “normal” timepieces?

For collectors and investors in particular, the question arises as to the development of the value of gold watches – could the high price premium over steel watches pay off in the future? Unfortunately, it is not possible to say for sure, because the market value of a model depends on a variety of other factors.

The decisive factor is demand: In the case of rare, sought-after models, the value increases regardless of the material, while genuine gold watches can lose value in the case of high quantities. The Rolex Cosmograph Daytona, for example, is one of the most sought-after timepieces of all, and its steel models have increased in value considerably in recent years. A gold Omega Constellation belongs more to the second category – it exists in high quantities and an increase in value in the near future seems unlikely.

It is therefore strongly discouraged to purchase any gold watches in the belief that they will appreciate in value anyway. In the worst case, you won’t even get back the material value. If you are interested in wristwatches as an investment, it is worth going deeper – those who gain experience and a feel for the market will tend to be more successful than a beginner. Regardless of the material.