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Old 22 January 2019, 05:42 PM   #1
APAP
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Patek and Platinum Premium

So platinum price has gone down at least 20% since a year ago. It's now 35% cheaper than gold.

How is it that watch makers still charge a much higher premium on platinum pieces? Does it require more man-days for crafting and finishing?
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Old 22 January 2019, 05:56 PM   #2
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So platinum price has gone down at least 20% since a year ago. It's now 35% cheaper than gold.

How is it watch makers still charge a much higher premium on platinum pieces? Does it require more man-days for crafting and finishing?
Watch manufacturers like to say platinum is harder to work on (and hence the premium), but it's not really true, you just need the right tools and equipment.

But in lux biz price only goes up or stay up, doesn't matter if the cost went down. You won't find any that will come out and say, oh the cost of acquiring platinum is down xx%, so lets discount our platinum watches.
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Old 22 January 2019, 06:38 PM   #3
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Watch makers charge a premium because it still seems to work, i.e. buyers will pay a premium for a platinum watch. Just look at the huge premium for the platinum Daytona.
But, you are correct, it makes no sense.
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Old 22 January 2019, 06:45 PM   #4
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Watch manufacturers like to say platinum is harder to work on (and hence the premium), but it's not really true, you just need the right tools and equipment.

But in lux biz price only goes up or stay up, doesn't matter if the cost went down. You won't find any that will come out and say, oh the cost of acquiring platinum is down xx%, so lets discount our platinum watches.
It is not true that PT is harder to work with? - it wears out tools faster? - it behaves very differently when worked? - it scratches in a totally different way? - and finally it is so much whiter than WG and hence desirable?
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Old 22 January 2019, 07:04 PM   #5
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regardless of price its a more "exclusive" metal. Both in nature and in watches.

Metal prices have no direct bearing on the final watch price difference anyway as there isnt that much steel in a steel watch or gold in a gold watch. Its harder to work with too, but im guessing that isnt related to the premium vs gold as its not that much harder to work with.

You also have to consider a Pt watch is 95% Pt and a gold watch is 75% gold
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Old 22 January 2019, 07:48 PM   #6
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Exclusively is directly linked to price - supply and demand.

I read somewhere that demand on platinum has substantially decreased as its main use is in Diesel engines which is dying, especially after VW scandal. I wonder what it will look like on the long run.
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Old 22 January 2019, 08:25 PM   #7
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It is not true that PT is harder to work with? - it wears out tools faster? - it behaves very differently when worked? - it scratches in a totally different way? - and finally it is so much whiter than WG and hence desirable?
Thatís why I said you need the right tool and equipment. The cost of making a platinum case isnít really higher than a gold case. And I never say platinum isnít desirable.
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Old 22 January 2019, 08:31 PM   #8
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You also need more Pt in weight to make the same sized gold case as its denser, this also needs to be factored in.

That is why a Pt model is heavier than gold. meaning more material cost.
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Old 22 January 2019, 08:35 PM   #9
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Exclusively is directly linked to price - supply and demand.

I read somewhere that demand on platinum has substantially decreased as its main use is in Diesel engines which is dying, especially after VW scandal. I wonder what it will look like on the long run.
sometimes... but Pt is a more rare precious metal. I would rather have a Pt watch vs a WG one for no reason other than the feel and the metal is more rare.
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Old 22 January 2019, 08:49 PM   #10
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regardless of price its a more "exclusive" metal. Both in nature and in watches.

Metal prices have no direct bearing on the final watch price difference anyway as there isnt that much steel in a steel watch or gold in a gold watch. Its harder to work with too, but im guessing that isnt related to the premium vs gold as its not that much harder to work with.

You also have to consider a Pt watch is 95% Pt and a gold watch is 75% gold
Yes, 5004a was sold at a higher price than the platinum version.

Unless one is in the manufacturing world, you wouldnít believe how cheaply things can be made and yet through ingenious marketing, sold at a high price.
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Old 22 January 2019, 10:05 PM   #11
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Public think Plat is more valuable than gold and until that changes there will remain this reflected price differential, so spot price and even difficulty of manufacture are largely immaterial at the luxury level, perception and revenue are supreme.
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Old 22 January 2019, 10:27 PM   #12
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Public think Plat is more valuable than gold and until that changes there will remain this reflected price differential, so spot price and even difficulty of manufacture are largely immaterial at the luxury level, perception and revenue are supreme.
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Old 23 January 2019, 03:51 AM   #13
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Platinum is more rare but, importantly, watch manufacturers typically make fewer platinum copies so the watch is more rare by design and hence the price can reflect that to a consumer/collector public who prizes exclusivity.
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Old 23 January 2019, 09:50 AM   #14
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I don't think it's any of the above. As a material Platinum is much harder to work on, hence more expensive to utilise for manufacturing.
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Old 23 January 2019, 04:43 PM   #15
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Why is no one asking the question: Why the heck is Gold trading much higher than Platinum?
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Old 23 January 2019, 04:50 PM   #16
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Why is no one asking the question: Why the heck is Gold trading much higher than Platinum?

industrial demand is down which was chewing a big % of global production.
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Old 23 January 2019, 05:10 PM   #17
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industrial demand is down which was chewing a big % of global production.
But isn't industrial demand also the reason why Gold is able to maintain such a high value? (Other than speculation and the fake safe-haven nonsense, of course.)
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Old 23 January 2019, 06:44 PM   #18
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Why is no one asking the question: Why the heck is Gold trading much higher than Platinum?
Platinum is chiefly an industrial metal, if industry usage goes down so does the price. Gold is a monetary metal, the original Bitcoin, if you will. Add to this the fact that platinum is just another white metal whereas gold distinguishes itself by its color.
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Old 24 January 2019, 01:42 AM   #19
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Platinum metal is harder to work with. You can also see it by comparing the Platinum cases with the gold ones of Patek wich are hand made. The platinum versions are really less refined and look like polished gold watches compared to the sharper polished/rounded edges.

And a higher price is more desirability and more exclusive.
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