Why are platinum Rolex watches more expensive than gold ones when platinum is cheaper

[JR16]

Originally Posted by Kevin O'Brien

As someone who trades gold, silver, and platinum bullion on a daily basis I find this an interesting topic.



The actual gold value in watches is quite minimal (usually 20% or less) however there is a significant premium for gold and platinum watches because it is a gold or platinum watch. It is the status, the heft, and everything else associated with owning precious metal watches. There is very little reason why platinum presidential costs almost $25,000 more than the gold counterpart.



About platinum: it is harder to use and make watches out of but it does cost less than gold. Yes, it is true that it is rarer but there is significantly less demand for it. For a while, the price was artificially pumped up to around $2,000 an oz. During this period platinum gained status over gold because costed significantly more.



The math:



Vale of a 18k gold presidential - $5,646.23 basis $1282 gold melt oz

Weight 235 grams



Value of a 95% platinum presidential - $7,777.83 basis $923 plat melt oz

Weight 275 grams



Difference in metal value $2,131.60

Difference in retail price $24,950



So does it cost $22,819 more to make a Rolex presidential out of platinum? I would highly doubt it! But hey you are getting platinum and an amazing dial color.

Brilliant ! Thanks


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[beshannon]

Because this is luxury jewelry.

[Wcdhtwn]

Pure gold is 24 karat. Rolex gold is 18 karat. However the platinum is nearly 100% pure. So the correct way to compare the metals based on current value is gold price x .75. That doesn't level the playing field but from what I understand, mostly from previous threads on the same topic, is that platinum is harder to work with and more is lost in the building process.

[MILGAUSS88]

Historically platinum has sold at a 2 to 1 premium to gold. Platinum selling less than gold is a recent phenomenon, one that has me still scratching my head.
Either gold is too expensive or platinum is too cheap.

Rolex didn't adjust there prices accordingly. They have kept the same historical pricing difference between there gold and platinum watches.

In addition, platinum is suppose to be more difficult to work with.

[Art 1]

I guess the real reason is that people are willing to pay the extra. People will do that with luxury items, pay extra, separate themselves from others.

[Tangier11]

[QUOTE=Bryant Park;7991237]There is an old expression regarding why a dog licks himself....

[Tangier11]

Along these lines, in terms of Rolex what is the percentage of Gold in YG, Rose and White?

[JManuel]

Originally Posted by Kevin O'Brien

As someone who trades gold, silver, and platinum bullion on a daily basis I find this an interesting topic.

The actual gold value in watches is quite minimal (usually 20% or less) however there is a significant premium for gold and platinum watches because it is a gold or platinum watch. It is the status, the heft, and everything else associated with owning precious metal watches. There is very little reason why platinum presidential costs almost $25,000 more than the gold counterpart.

About platinum: it is harder to use and make watches out of but it does cost less than gold. Yes, it is true that it is rarer but there is significantly less demand for it. For a while, the price was artificially pumped up to around $2,000 an oz. During this period platinum gained status over gold because costed significantly more.

The math:

Vale of a 18k gold presidential - $5,646.23 basis $1282 gold melt oz
Weight 235 grams

Value of a 95% platinum presidential - $7,777.83 basis $923 plat melt oz
Weight 275 grams

Difference in metal value $2,131.60
Difference in retail price $24,950

So does it cost $22,819 more to make a Rolex presidential out of platinum? I would highly doubt it! But hey you are getting platinum and an amazing dial color.

[Onikage]

As has probably been said several times 'spot price' or melt value of the metal doesn't come into it. Platinum is the more prestigious and rarer metal. A Rolex made out of it is even rarer - If you want one be prepared to pay for it. It is also more difficult to machine and finish which also makes the watches more special.

[tomchicago]

With platinum you're just getting more of a cheaper metal. In fact, platinum is second only to SILVER for being the cheapest of all precious metals!! See for yerself:

http://www.kitco.com/market/

[Chiboy]

Originally Posted by Tangier11

Along these lines, in terms of Rolex what is the percentage of Gold in YG, Rose and White?

I believe it's right around 75%, 75% and 75%, respectively.

[tamiya]

Springing a spanner... I hear R's gold formula involves adding 2% Pt supposedly?

[returntorolex]

Platinum has three syllables, whereas gold has but one.

[DCGuy1965]

Platinum is so stunning. I also believe it's a bit more scratch resistant and stronger than gold. I know it's less expensive in the metals market but I still want one

[Brad Clissold]

If you start deconstructing the value of a Rolex by the sum of its parts, we're all going to have a bad Wednesday.

[kunlun]

Originally Posted by DCGuy1965

Platinum is so stunning. I also believe it's a bit more scratch resistant and stronger than gold.

No to the scratch resistance part, for the alloys used in watches.

[tyler1980]

Originally Posted by Chiboy

I believe it's right around 75%, 75% and 75%, respectively.

18K = Au 750 = 75%

i also think the term "solid gold" leads to confusion as solid 18K gold means it is solid to that percentage all the way through vs being plated or something, not that the gold itself is solid gold (pure). You would be surprised at how many have that expectation and think yellow gold is more pure than the others because of the color.

[regnant]

Great replies, thanks for your insights
Platinum has also a wow factor that a gold can't when you handle it. It's because it's denser and it makes it heavier.
Platinum also never looses in weight but other metals do when they go in for refurbishment

[Rocket_Man]

If density, weight, scratch resistance is what people seek, can't wait to buy my first Tungsten Carbide Rolex. But I'm not going to hold my breath.

Rolex sells the Platinum versions at a premium because people pay it.

[wristmatic]

platinum looks nicer than white gold and stainless steel, only if you have the eye for it.