Platinum prices

[dolceman81]

Given the economic conditions are the prices for pre-owned PT watches lowering? Or in the foreseeable future? Is it a buyers market, or is it static?

[Fleetlord]

Originally Posted by dolceman81

Given the economic conditions are the prices for pre-owned PT watches lowering? Or in the foreseeable future? Is it a buyers market, or is it static?

Currently market prices are rising on PM Rolex, especially gold references.

Platinum seems a bit less inclined, but they certainly aren’t dropping.

[peterpl]

Originally Posted by Fleetlord

Currently market prices are rising on PM Rolex, especially gold references.
Platinum seems a bit less inclined, but they certainly aren’t dropping.

Spot on.

Platinum aint dropping anytime soon since all the gold pieces are rising.

[beshannon]

Originally Posted by dolceman81

Given the economic conditions are the prices for pre-owned PT watches lowering? Or in the foreseeable future? Is it a buyers market, or is it static?

The price of a raw commodity has little to do with the retail price of a piece of high end luxury jewelry

[omx5o]

Originally Posted by beshannon

The price of a raw commodity has little to do with the retail price of a piece of high end luxury jewelry

That's fair enough, but a demand for raw precious metals could also increase demand for luxury items in that metal. For example, the gold watches that were popular in the 80's followed a 20x rise in the price of gold in the 70's.

[csaltphoto]

Originally Posted by peterpl

Spot on.

Platinum aint dropping anytime soon since all the gold pieces are rising.

Also Platinum pricing is less speculative/more stable since it has a lot of common industrial uses (as does gold) but is less popular as jewelry or an investment. The price is unlikely to drop unless a replacement is found for it.

The funny thing is the absolute value of platinum in Rolex watches is about the same as in the gold versions. Roughly 8K per watch. You see the older gold DD's going in the low teens and even lower, about the value of the gold+any working Rolex. Platinum versions rarely dip below 20K. So the platinum seems to hold more intrinsic value even if it's absolute value is about the same as the gold.

In any case the big depreciation hit is from new to anything other than new with the non sports/professional models. As much as a 50% drop on some models or even more. I was looking a WG 36 DD at an an AD and price was 38K + tax. I found the identical model online for 16.5k. And Platinum models that go for 60K at an AD can be found for 30K-ish.

[904VT]

More difficult to work than Gold and more costly per unit/weight than SS. Those 2 factors, mean nothing is changing LT. The price/value in secondary markets of PM jewelry has very little correlation to precious metal commodity prices. Those are usually driven by 1. Monetary pressures and/or 2. Industrial sectors using the PMs as inputs. When price does move in jewelry, it's due to short-term cognitive errors being a factor in supply/demand. Can't predict irrationality, but behavioral economics says to be aware of its influence.

[jlovda]

Originally Posted by 904VT

More difficult to work than Gold and more costly per unit/weight than SS. Those 2 factors, mean nothing is changing LT. The price/value in secondary markets of PM jewelry has very little correlation to precious metal commodity prices. Those are usually driven by 1. Monetary pressures and/or 2. Industrial sectors using the PMs as inputs. When price does move in jewelry, it's due to short-term cognitive errors being a factor in supply/demand. Can't predict irrationality, but behavioral economics says to be aware of its influence.

This sounds like an abstract for a technical paper written by a college economics professor.

[G.D.BeanCounter]

It seems to me that prices on PM Rolex pieces are just restoring to pre-March prices, just a lot slower than the hot SS pieces.

[fixinbones]

Originally Posted by Fleetlord

Currently market prices are rising on PM Rolex, especially gold references.

Platinum seems a bit less inclined, but they certainly aren’t dropping.

I could have bought a PT Daytona 3 years ago for under 60k. Now they are going for 70k.

[peterpl]

Originally Posted by G.D.BeanCounter

It seems to me that prices on PM Rolex pieces are just restoring to pre-March prices, just a lot slower than the hot SS pieces.

No Way.

They are higher. There was no way in the past that a RG DD40 would sell above $35k. Now pretty much all of them NIB are asking minimum that.

Pre March they were still around $32-$33k or less and I thought that was high already as I got mine for $28k.

[904VT]

Originally Posted by jlovda

This sounds like an abstract for a technical paper written by a college economics professor.

Why thank you

If we must talk entry points and in terms of valuations. When in Rome

[uhren917]

1- Platinum is ~30x more rare than Gold in nature. Gold has gone up 30 to 50% in a few months. Platinum spot prices have stayed about the same or even slightly gone down. IMO Platinum is undervalued on a relative basis.

2- While the amount of Gold value is low relative to the melt weight of a Gold Day Date Watch, the fact Rolex has to pay more for raw PM materials, suggests to me they may/will likely follow in raising their prices. When that happens is anybody's guess, but it stands to reason if the price of Gold/Silver/Platinum PMs stay at this level beyond 2020, the watch prices will likely follow.

[tx02ag]

Over-simplification below:
Gold is used in electronics. Stable and growing demand.
Platinum and palladium are used in catalytic converters. Weak demand currently due to COVID and possibly long term demand destruction as Europe and potentially other electrify their auto fleets.

[904VT]

Originally Posted by uhren917

1- Platinum is ~30x more rare than Gold in nature. Gold has gone up 30 to 50% in a few months. Platinum spot prices have stayed about the same or even slightly gone down. IMO Platinum is undervalued on a relative basis.

2- While the amount of Gold value is low relative to the melt weight of a Gold Day Date Watch, the fact Rolex has to pay more for raw PM materials, suggests to me they may/will likely follow in raising their prices. When that happens is anybody's guess, but it stands to reason if the price of Gold/Silver/Platinum PMs stay at this level beyond 2020, the watch prices will likely follow.

Solid points. Rolex has a great team of economists, little known to most of the public. I have a feeling they saw a long running bull market and currency pressures, and decided it was time to make a move and that is why they upped the price of their PM models at the start of 2020 in many markets.

[Polarexplorerii]

Originally Posted by uhren917

1- Platinum is ~30x more rare than Gold in nature. Gold has gone up 30 to 50% in a few months. Platinum spot prices have stayed about the same or even slightly gone down. IMO Platinum is undervalued on a relative basis.

2- While the amount of Gold value is low relative to the melt weight of a Gold Day Date Watch, the fact Rolex has to pay more for raw PM materials, suggests to me they may/will likely follow in raising their prices. When that happens is anybody's guess, but it stands to reason if the price of Gold/Silver/Platinum PMs stay at this level beyond 2020, the watch prices will likely follow.