jp884
3220
Will we see a point when gold watches surpass the price of PT watches?
Given that Gold is much more expensive as a commodity than PT. I know PT watches are more pure and harder to mill but if the raw material is 3x the cost of PT. When will we see gold be more expensive than PT?
Will we see a point when gold watches surpass the price of PT watches?
Given that Gold is much more expensive as a commodity than PT. I know PT watches are more pure and harder to mill but if the raw material is 3x the cost of PT. When will we see gold be more expensive than PT?
Good question! Hard to say.
PT is 95% pure in most watches. Gold is only 75% pure. Platinum is also more difficult to machine and polish (the metal reacts to shaping, burring, and tools differently). We'll see the premium in the jewelry industry erode faster than in the watch indust...
I hope you have it the wrong way round., and really platinum watch prices should come down not gold watch prices go up.
As you say gold is now and has been far more expensive than platinum for a long time. It started back in 2008 and the financial crisis when platinum plunged by over 60% due to it no longer having a huge demand for industrial uses especially in the auto in...
Things rarely come down unfortunately...
The watch industry has much more price increases than price decreases. Over a decade ago, AP did have a price decrease which they attributed to lower gold prices, but those in the industry knew that AP's inventory was building up and it was more about get...
What you are not taking in to account is
that for a same shaped case you use much more platinum then gold in weight. In one cubic cm you are using roughly 14.5gr of pure gold but 20.3gr of pure platinum. Although I mean yes precious metals are costly but do they require that much mark up to thei...
I think…
It needs to read, ‘Prices have no relation to the costs of production and are a reflection of what we think the market can bear’ 😉
The material cost of a 18k palladium white gold watch will be about 1.5x that of a platinum watch, going by spot prices
Assuming Au 750 + Pd 150 16 g/cc (117 $/g * .75 + 37 $/g * .15) = $1,494/cc Assuming Pt 950 + Ru 50 21 g/cc (45 $/g * .95 + 40 $/g * .05) = $940/cc
We have to factor in the wear & tear
of tools on platinum as platinum is harder and more difficult to work with, and thus tools deteriorate quicker than those used on softer gold.
If watches were being priced according to the precious metal content, I think we would have already seen it happen.
With current prices between the two metals, I highly doubt a platinum day-date is more expensive to make than a gold one. The pricing is more for the exclusivity of having a rarer model. The premium on a platona for example of course has relatively little...
Remember not so long ago, before Covid, a PT Daytona was $45K on the secondary market?
I doubt that will ever happen…