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24 October 2017, 07:15 AM | #1 |
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Why are platinum Rolex watches more expensive than gold ones when platinum is cheaper
As of October 23 2017, gold is $1,282 an ounce while platinum is only $927.
Yet platinum Daydate 40's seem to be about $10,000 more expensive than the gold models. |
24 October 2017, 07:18 AM | #2 |
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I believe the amount of platinum in the world is a mere fraction of the amount of gold available in the world.
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24 October 2017, 07:19 AM | #3 | |
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Why are platinum Rolex watches more expensive than gold ones when platinum is cheaper
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Because it’s not pure gold. Gold is mixed with other metals so there’s actually less gold in a gold watch than platinum in a platinum watch. Sent from my iPhone using Tapatalk |
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24 October 2017, 07:19 AM | #4 |
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its not just about metal values.... but even if it was, a Pt watch is 950 which is 95% platinum and a gold watch is 750 which is 75% gold. There is more Pt in a Pt watch than gold in a gold watch.
And of course my favorite all time answer is there isn't 8K of steel in a steel watch so why does that cost so much? Platinum is more exclusive, its both more rare in the earth as well as for a material in watches vs gold, it's harder to work with, and feels more substantial. All of which contribute to the extra bit of exclusivity of a platinum watch and influences the price.
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24 October 2017, 07:19 AM | #5 |
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24 October 2017, 08:08 AM | #6 |
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Platinum also weighs more so pound for pound there is more actual metal (grams) in a platinum watch than a gold watch, then there’s 95% platinum and 75% gold, then there’s the old addage that Platinum ‘is the most noble metal’.
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24 October 2017, 08:18 AM | #7 |
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Platinum is less common and more rare. Exclusivity factor.
Has nothing to do with the value per ounce. There are many threads on this topic. |
24 October 2017, 08:49 AM | #8 | |
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24 October 2017, 08:54 AM | #9 |
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Prices of goods are based on what the market will allow and seldom reflect the actual hard-value of materials.
Plenty of folks pay over a hundred bucks for torn Levi's when you can get the untorn version for 20.
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24 October 2017, 09:01 AM | #10 | |
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24 October 2017, 09:13 AM | #11 |
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From a mfg standpoint, Platinum is a much more difficult metal to work with, in creating a watch
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24 October 2017, 10:44 AM | #12 |
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People perceive platinum as the superior metal, and when that changes so will prices, all the other maths is largely insignificant in what the market will bear.
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24 October 2017, 10:56 AM | #13 |
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There is an old expression regarding why a dog licks himself....
In this case it's not that they can, it's because people will pay for it. Fair question and I think it is because consumers prefer the subtlety of white medals but want the weight and prestige of platinum. It creates a relatively small, but well funded group of consumers who are more than willing to pay up. |
24 October 2017, 11:04 AM | #14 |
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Platinum is very difficult to work with.
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24 October 2017, 11:06 AM | #15 |
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It’s harder to machine
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24 October 2017, 11:19 AM | #16 | |
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Quote:
Plus, I would say it's also influenced by the fact Platinum has historically always been more expensive than gold. Could you imagine the revolt from Platinum owners if brands just dropped prices to account for PM prices? Watch prices are far removed from actual PM prices - it may be used as an excuse to raise prices, but the amount of actual metal in them is so low relative to the price of the watch that there is almost zero correlation between PM prices and watch MSRPs. |
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24 October 2017, 11:29 AM | #17 |
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Untorn Levis are A$100. here, never mind torn ones.
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24 October 2017, 11:35 AM | #18 |
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I think the primary reason Rolex does this is to drive such discussions into the ground...
Maybe ask why Rolex doesn’t make a Sterling Silver-based watch? It’d be easier than Pt and look the same. Sent from my iPad using Tapatalk
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24 October 2017, 11:42 AM | #19 | |
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About all you need to answer this question. Sent from my iPhone using Tapatalk
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24 October 2017, 11:48 AM | #20 |
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24 October 2017, 12:19 PM | #21 |
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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. |
24 October 2017, 12:22 PM | #22 | |
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Quote:
I would want a watch made out of just about anything other than silver. |
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24 October 2017, 12:23 PM | #23 | |
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24 October 2017, 12:36 PM | #24 |
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Also—
Forgot to add. The movement accounts for about 10 to 15% of the weight of the watch so in order to find out the exact metal content you would have to find the weight of a presidential movement and subtract it from the gold and platinum melt value. |
24 October 2017, 12:44 PM | #25 | |
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Quote:
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24 October 2017, 12:57 PM | #26 |
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24 October 2017, 01:41 PM | #27 |
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Aliens want our platinum. When they come, and they will, all those wearing platinum Rolex will be spared. Fact.
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24 October 2017, 01:46 PM | #28 |
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24 October 2017, 01:50 PM | #29 |
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Because it's the best metal for silencing haters
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24 October 2017, 02:19 PM | #30 | |
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Quote:
While it's definitely not an apples to apples comparison, the pet rock nonsense from the '70's shows that when the marketing and public desire coincide you can sell dirt to farmers at a premium. |
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