Walk into any conversation about luxury watch investment, and the steel versus gold debate won’t be far behind. It seems counterintuitive at first – surely a watch made from precious metal should be worth more, and grow faster, than one made from stainless steel? In practice, the secondary market tells a more nuanced story, and understanding it can make a meaningful difference to what you achieve when you come to sell.
The Case for Steel: Demand Drives Everything
Here’s the finding that consistently surprises people unfamiliar with the pre-owned watch market: stainless steel sports models have, over the past decade, outperformed their gold counterparts in percentage appreciation terms at many of the most sought-after brands.
The reason comes down to a simple but powerful dynamic – scarcity relative to desire. Steel sports references from Rolex, Patek Philippe, and Audemars Piguet are priced accessibly enough to attract a very large pool of buyers, yet supply from authorised dealers has remained tightly controlled for years. The result is persistent secondary market premiums that, for certain references, have been extraordinary.
Consider the steel Rolex Submariner or the ceramic Daytona. Both routinely trade well above retail on the secondary market, driven by waiting lists that stretch years at authorised dealers. A stainless steel GMT-Master II purchased at retail in 2020 for around £9,000 has traded on the pre-owned market at considerably higher figures since – a return profile that few gold alternatives from the same era can match on a percentage basis.
The discontinued steel Patek Philippe Nautilus 5711 is perhaps the most dramatic illustration. When Patek announced its discontinuation in 2021, secondary prices surged immediately, and the reference has continued to command figures that bear almost no relation to its original retail price. No gold variant of the same watch has performed comparably on a percentage basis – the steel reference is simply more coveted, more liquid, and more universally recognised.
Why Steel Attracts More Buyers
The collector preference for steel sports watches isn’t arbitrary. Several factors reinforce it:
- Wearability – Steel sports watches are genuinely daily pieces. Their versatility means a broader pool of buyers, which supports liquidity.
- Authenticity to heritage – Many iconic references were designed as tool watches, intended for divers, pilots, or explorers. Steel is true to that identity in a way gold isn’t.
- Accessible exclusivity – Steel references sit at a price point where demand comfortably exceeds supply, creating the scarcity premium that drives appreciation.
The Case for Gold: A Different Kind of Value
Gold watches tell a different story – and it’s one that is becoming more relevant.
Gold as a commodity reached record highs in 2025, and analysts at major banks have forecast continued upward pressure through 2026. This matters for watch owners because a solid gold timepiece has a material floor value that stainless steel simply doesn’t. If the gold price rises, the intrinsic value of the metal in your watch rises with it – providing a layer of protection that is entirely independent of collector sentiment or brand desirability.
This was reflected in Rolex’s January 2026 retail price adjustments, which saw yellow gold, Everose, and white gold models increase by 7–9%, compared to 4–5% for steel references. The increases were directly tied to raw material costs, and they flowed through to secondary market floors for precious metal references accordingly.
Gold watches also tend to appeal to a different buyer profile – one less focused on sports heritage and more interested in investment-grade assets, heirloom quality, and the prestige associated with precious metals. The Patek Philippe Calatrava in yellow or white gold, for example, holds strong value among collectors who value horological purity and understated craftsmanship, even if it doesn’t generate the same secondary market frenzy as a steel sports reference.
For very rare or complicated pieces – think Patek grand complications in gold, or Audemars Piguet Royal Oak perpetual calendars – gold can produce exceptional absolute returns. The ceiling is higher on these pieces than on any steel sports watch, even if the floor is harder to predict.
Two-Tone: The Often-Overlooked Middle Ground
Sitting between the two sits the Rolesor or bi-colour category – watches combining stainless steel with yellow, Everose, or white gold. This segment has quietly outperformed expectations on the secondary market, attracting buyers who want the practicality of steel alongside the material prestige of gold.
Two-tone references from Rolex in particular have seen renewed collector interest, with inventory sparse across secondary platforms and prices holding more firmly than many all-steel models in the post-pandemic correction period. For sellers, a well-preserved two-tone reference in good condition with box and papers can be a very strong proposition.
What the Current Market Is Telling Us
The post-pandemic correction of 2022–2023 was instructive. Steel sports watches – particularly those from second and third-tier brands – corrected sharply. The references that held firm or continued to appreciate were, almost without exception, either iconic steel sports models from the top three or four brands, or precious metal pieces with genuine rarity and collector standing.
The lesson is clear: material matters less than model, brand, and scarcity. A steel Rolex or Patek in a sought-after reference will outperform a gold watch from a less desirable brand almost every time. And within the top brands, steel sports references have historically appreciated faster on a percentage basis – while gold pieces can offer stronger absolute gains at the very top of the market, and increasingly meaningful commodity-backed floor values as gold prices rise.
What This Means If You’re Looking to Sell
If you own a steel sports reference from a top-tier brand in excellent condition, the secondary market in 2026 remains broadly supportive – particularly for full sets with original box and papers. Demand from collectors and institutional buyers is active, and scarcity continues to underpin pricing for the most coveted references.
If you own a gold piece, the picture is more nuanced. The commodity story is genuinely positive, and for rare or complicated references, values remain robust. For more standard gold dress watches, the market is less liquid but still capable of producing strong results with the right buyer.
Either way, understanding the long-term value of your watch before you decide to sell is essential. The team at The Watch Exchange London offers free expert valuations at our Burlington Arcade store in Mayfair – whether your watch is steel, gold, or something in between. We’ll give you an honest, data-informed assessment and, if you choose to proceed, same-day payment directly to your bank.
