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Horological Meandering

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Comments:

Platinum now $200 less than gold, yet platinum watches fetch same premium

 
 By: fallanden_ch : February 7th, 2012-21:49

The watch business is just fun to watch. Yes, I am aware that platinum is slightly harder to work with than gold, however, it is no longer a more expensive metal. In fact, the $200 spread between the two is quite large!

Will we see platinum be perceived as less exclusive? I doubt it.

Does it make any sense that the same model in platinum is usually priced close to twice as high as gold?? Not anymore.

 

 

Tapping onto your excellent point

 
 By: flamenco : February 7th, 2012-22:48

Am always under the impression that platinium is harder to fashion than gold.

Fact or Fiction ? And if so, have I listed an excuse for the premium ?

Density of Platinum Exceeds Gold Therefore More Oz's Used

 
 By: George Ab : February 7th, 2012-22:53
The density of platinum exceeds gold.  So the same watch case manufactured out of platinum will weigh more then its gold counterpart.  Since price is denoted in troy ounces it will therefore cost more.  That is one factor that affects the difference in price.  

We had this discussion just recently...

 
 By: Ornatus-Mundi : February 7th, 2012-23:50
here with some excellent inputs: CLICK ME!

To sum up:

  1. raw material costs (which includes the greater purity of Platinum (95%) vs. Gold (75%)
  2. machining costs
  3. 'marketing costs' (that is what captures the status of the precious material)

Thanks,
Magnus

Thanks for sharing.

 
 By: VMM : February 8th, 2012-01:57

Best.

 

Vte smile

Look at it this way

 
 By: Mostel : February 8th, 2012-09:17
Gold still costs less in a watch, so buy gold.

A lot has to do with the perceived status of platinum...

 
 By: Emil Wojcik : February 8th, 2012-11:17
...but of course, as others have already posted, it's also more difficult and considerably more costly to machine.

Platinum will also wear better than gold due to it's hardness, which makes it less susceptible to damage from use. That's an added benefit in my eyes and may justify a bit of the difference.

I don't think the status issue will change unless gold prices rise considerably more and then stay that way for a very long time. But that's just my opinion.

And don't forget, a gold watch can cost $10K or $20K+ more than the same watch in stainless...that's the real puzzle in my eyes. What, other than status, can possible make a gold watch that much more costly than it's steel counterpart?
This message has been edited by Emil Wojcik on 2012-02-08 11:19:00

Density alone of platinum is 11% higher plus 95% platinum or more vs. 75% (18k)

 
 By: Dave G : February 8th, 2012-21:51
Means generally more than 30% more platinum by weight than gold for the same case.  Add the significantly higher machining costs and you see the economics.

and ounce is and ounce

 
 By: fallanden_ch : February 9th, 2012-16:45

Yes, platinum may be more dense, but an ounce is and ounce and platinum is priced in the same troy ounces as gold. Bottom line, buying the same amount of platinum costs less right now.

The machining is a bit more difficult, but with a $200 difference in metal costs, I'll bet that more than makes up the difference in machining costs.

Platinum is not actually harder than gold. I used to think so also, but I read that it is in fact a bit softer. Rather than scratch where the metal actually comes off though, it tends to gouge or push the metal back into itself.

 

 

 

 

An ounce is an once, but for a given volume...

 
 By: Dave G : February 10th, 2012-02:27
Like in a watch case there will be more platinum by weight.  Platinum will be 21.45 grams per cubic cm and gold will be 19.3 grams for the same volume.   This of course would be if we were talking 100% platinum and 24k gold.  Factor in the big difference in alloy mix typically 95% platinum and 75% gold, and there is much more weight in platinum than gold in the same size case.

True, platinum is technically softer but...

 
 By: Emil Wojcik : February 10th, 2012-09:21
...it has greater tensile strength, so it wears much better than gold. And although it will scratch slightly easier, its tensile strength allows it to be polished more without wearing down the case, which means a sharp edge will stay sharp even with repeated polishing. This is not the case with gold.

And, as Dave posted, since its specific gravity is greater than gold, a platinum case of any given model will weigh more than a gold case of the same model.
This message has been edited by Emil Wojcik on 2012-02-10 09:21:52

Rarity is a physical reality...

 
 By: bjacknot : February 10th, 2012-11:17
World platinum production is ~6% of gold production.  The earth has far greater (proven) gold reserves than platinum reserves, so it is our declining faith in fiat currency and economic conditions around the world that drives the value of gold rather than availability and industrial uses.  I tip my hat to the more noble metal but I love the look of gold more.  I'll still refrain from melting my (Pt or Au) watches and turning them into (tiny) ingots.  The intrinsic value would be far less than the value of the watches.  If anyone with Patek Philippe, Audemars Piguet, etc., want to sell their watches at the spot price in weight of either metal, I am a willing buyer!