“Time. The enemy of us all. Hold a watch to your ear and listen. Tick tock, tick tock... those are the hoof beats of the Reaper's pale horse. "Half past eight, he's at your gate. Quarter to four, a knock on the door." Unwinding is the mortal coil that drives the gears to tick and toil, until at last, it rests, unwound, and we lay silent in the ground.”
–Ford Cruller
The Gold Watch is a Scavenger Hunt item located atop the statue of Houston Thorney outside the Asylum in Psychonauts.
According to one of Boyd Cooper's memory vaults, Coach Oleander seems to have used a similar pocket watch to hypnotize him into guarding the gate to the asylum, which might explain its current location so far from the campgrounds, where the scavenger hunt is meant to take place.
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