Would platinum rolex price drop below gold rolex?

[purelife]

Platinum as a metal has dropped significantly below gold in value for some time.

This has percolated to the jewelry industry. A platinum ring/necklace now costs no more than gold, if not less.

But it seems in the watch world, among major brands, of which Rolex is one of, Platinum as a metal still denotes the top tier in precious metallergy and the "top of the food chain" for lack of a better phrase.

My personal take is that firstly it does not matter. Watches could be but should not be used as investments, so the value aspect should not be the most important focus.

Secondarily though, it is a rather awkward legacy that is yet pending a correction. The jewelry business already corrected to pricing gold more than Platinum. Obviously, historically, the biggest watch brands mostly made their precious metal watches in Gold. Then came the proliferation 80's period where there was a economy boom and demand for even more luxurious metal, which co incideded with the rise of platinum at that time as being more valuable than gold, so bam, suddenly the watch makers began offering a platinum as the new king.

But the rare metal world is ever so mercurial, fast forward to today, platinum is no longer worth as much as gold. The jewelry industry simply corrected it by charging less for platinum pieces; but Rolex is left with the rather awkward situation where the platinum line has been given its own unique secondary narrative of being available with ice blue, a color associated with top tier rolex pieces through its connection to platinum, which is now a less valuable metal.

I do wonder if platinum continues to drop, there will come a time when new generations of watch enthusiasts will begin to ask some tough questions that may force a correction of some kind.

Patek on the other hand is bound enslaved to the same problem because their platinum watches do not have special colors; so they can simply price plat below gold. But for Rolex, I do wonder if they will put ice blue on gold or leave ice blue be as the exclusive color of the 2nd most expensive metal lol.

[ExplorerI]

The cost of the actual metal makes up so little percentage of the total price I’m not sure they will really make changes based on spot prices of the metals
Platinum is also way more rare in the Rolex world so that may help to prop up secondary market prices.

[Burlington]

It’s sometimes been said that platinum is harder to machine than gold, so manufacturing cost may come into it too (especially if they produce fewer Pt models as a result)

Certainly it’s the case for Jewellry now as you’ve said. I was quoted quite a bit less for a platinum tennis bracelet as a gift for my wife than an identical 18k white gold just last week.

Can’t see Rolex changing pricing strategy that rapidly though on this one.

[jrinTX]

Platinum fluctuates more than gold, and can spike pretty quickly. I remember first looking at platinum rings when my enlistment bonus hit shortly after the S. African mining issue, was priced over $2200. Gold is up any time there is economic fears, the a.m. radio guys don’t pitch platinum for your IRA.

To your question, price aside, platinum is way more rare on earth than gold and because of this, platinum will remain top tier. If not, I’ll need Amex to prorate my annual fee!

[Emc2ir]

Just wear a Platinum Daydate 40 for a few days…. Then you will appreciate why the platinum version is so much more expensive

[fsprow]

I believe demand by purchasers is more a factor in determining price than the cost of the materials.

[kkqd1337]

Originally Posted by ExplorerI

The cost of the actual metal makes up so little percentage of the total price I’m not sure they will really make changes based on spot prices of the metals
Platinum is also way more rare in the Rolex world so that may help to prop up secondary market prices.

I agree with your general point

But - am I right at current prices that the raw metal gold price for a DD would make up approx 5-10% of it’s retail price?

(If I am right) that to me seems to be a very significant %

[Jack T]

If luxury goods were nothing more than the cost of materials, labor and a nominal markup then this whole thing would go "poof"

[Daytonaman799]

Originally Posted by Emc2ir

Just wear a Platinum Daydate 40 for a few days…. Then you will appreciate why the platinum version is so much more expensive

This….

[Kevin of Larchmont]

The price of luxury items isn’t based on actual value as much it’s based on perceived value and irrational desire. As long as there are limited platinum options in limited numbers at high prices in the Rolex lineup then they’ve created their own definition of value above and beyond the cost of the materials.

[MILGAUSS88]

Most platinum is alloyed with iridium, which is $5,600/ ounce the last time I checked.
So, 900 platinum is actually more expensive than the 950 platinum that Rolex uses.
So add $460/ounce for to the platinum price for 900P and $230/oz for 950P.

2nd platinum is much harder to work with. I have a friend who is a jeweler and makes settings in house. He hates working with platinum. Said it takes twice the time to make the same ring in platinum compared to gold, and you can't make mistakes with platinum. No problem with gold. (Palladium is even worse.)

I checked prices for platinum settings and necklaces on line and they appear to be 3 times their comparable gold counterparts, so not sure where you are seeing them cheaper than gold?

[Calatrava r]

Platinum is the king of metals in the watch industry. They will always charge a huge premium for it no matter what it costs them. The cost of any Rolex, or other luxury watch brand, far exceeds its cost of actual production in terms of materials and labor.

[purelife]

Originally Posted by MILGAUSS88

Most platinum is alloyed with iridium, which is $5,600/ ounce the last time I checked.
So, 900 platinum is actually more expensive than the 950 platinum that Rolex uses.
So add $460/ounce for to the platinum price for 900P and $230/oz for 950P.

2nd platinum is much harder to work with. I have a friend who is a jeweler and makes settings in house. He hates working with platinum. Said it takes twice the time to make the same ring in platinum compared to gold, and you can't make mistakes with platinum. No problem with gold. (Palladium is even worse.)

I checked prices for platinum settings and necklaces on line and they appear to be 3 times their comparable gold counterparts, so not sure where you are seeing them cheaper than gold?

I used mene.com as reference for jewelry as well as my local jeweler.

mene.com has a very solid reputation.

[csaltphoto]

It might be more work for a jeweler to work with Platinum but on the level that Rolex makes stuff that explanation doesn't hold any water. Rolex is a factory. There are factories all over the world routinely machining stuff like Inconel and Tungsten and they are way harder to work with than Platinum.

[881]

No they won’t for Rolex or PP

[SS Oyster]

I agree with others points - more exclusive, more rare (fewer made), fewer options in platinum, and harder to machine.

One point missed is that Platinum is .950 while gold is .750, so that has to be factored into the strike price math.

Finally, I think all watch brands will continue to place platinum at the top of their watch pyramid just because of perceptions and the pure quality feel (heft) of wearing platinum vs anything else.


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[2000-NJDEVILS]

Originally Posted by purelife

Platinum as a metal has dropped significantly below gold in value for some time.

This has percolated to the jewelry industry. A platinum ring/necklace now costs no more than gold, if not less.

But it seems in the watch world, among major brands, of which Rolex is one of, Platinum as a metal still denotes the top tier in precious metallergy and the "top of the food chain" for lack of a better phrase.

My personal take is that firstly it does not matter. Watches could be but should not be used as investments, so the value aspect should not be the most important focus.

Secondarily though, it is a rather awkward legacy that is yet pending a correction. The jewelry business already corrected to pricing gold more than Platinum. Obviously, historically, the biggest watch brands mostly made their precious metal watches in Gold. Then came the proliferation 80's period where there was a economy boom and demand for even more luxurious metal, which co incideded with the rise of platinum at that time as being more valuable than gold, so bam, suddenly the watch makers began offering a platinum as the new king.

But the rare metal world is ever so mercurial, fast forward to today, platinum is no longer worth as much as gold. The jewelry industry simply corrected it by charging less for platinum pieces; but Rolex is left with the rather awkward situation where the platinum line has been given its own unique secondary narrative of being available with ice blue, a color associated with top tier rolex pieces through its connection to platinum, which is now a less valuable metal.

I do wonder if platinum continues to drop, there will come a time when new generations of watch enthusiasts will begin to ask some tough questions that may force a correction of some kind.

Patek on the other hand is bound enslaved to the same problem because their platinum watches do not have special colors; so they can simply price plat below gold. But for Rolex, I do wonder if they will put ice blue on gold or leave ice blue be as the exclusive color of the 2nd most expensive metal lol.

The simple answer is NEVER!
Ain’t gonna happen.
Gold is $1500 an ounce MORE than an ounce of Platinum - and since The Crown hasn’t really jacked the MSRP of the gold watches up - it’s pretty safe to say they will not adjust the price of any Platinum watch down……

[Devildog]

Originally Posted by purelife

Platinum as a metal has dropped significantly below gold in value for some time.

This has percolated to the jewelry industry. A platinum ring/necklace now costs no more than gold, if not less.

But it seems in the watch world, among major brands, of which Rolex is one of, Platinum as a metal still denotes the top tier in precious metallergy and the "top of the food chain" for lack of a better phrase.

My personal take is that firstly it does not matter. Watches could be but should not be used as investments, so the value aspect should not be the most important focus.

Secondarily though, it is a rather awkward legacy that is yet pending a correction. The jewelry business already corrected to pricing gold more than Platinum. Obviously, historically, the biggest watch brands mostly made their precious metal watches in Gold. Then came the proliferation 80's period where there was a economy boom and demand for even more luxurious metal, which co incideded with the rise of platinum at that time as being more valuable than gold, so bam, suddenly the watch makers began offering a platinum as the new king.

But the rare metal world is ever so mercurial, fast forward to today, platinum is no longer worth as much as gold. The jewelry industry simply corrected it by charging less for platinum pieces; but Rolex is left with the rather awkward situation where the platinum line has been given its own unique secondary narrative of being available with ice blue, a color associated with top tier rolex pieces through its connection to platinum, which is now a less valuable metal.

I do wonder if platinum continues to drop, there will come a time when new generations of watch enthusiasts will begin to ask some tough questions that may force a correction of some kind.

Patek on the other hand is bound enslaved to the same problem because their platinum watches do not have special colors; so they can simply price plat below gold. But for Rolex, I do wonder if they will put ice blue on gold or leave ice blue be as the exclusive color of the 2nd most expensive metal lol.

At current 18ct and 950pt UK prices, if we assume the movement, dial and crystal weigh 50g, there's circa £8k of 18ct gold in a full gold Daytona and circa £6k of 950pt in a platinum Daytona (less for the 12 series with its exhibition caseback)

So the gold "value" is circa 21% of RRP for an 18ct Daytona and the platinum "value" is only circa 9% of RRP.

Whilst its absolutely true that Pt is much harder to work than Au at every stage of the process (my friend is a jewellery maker and confirms), that is not the reason that a Pt Daytona is nearly twice the price (at retail) with a lower raw material value. But luxury goods are rarely priced based on raw material value.

She made me a bespoke ring recently out of platinum. The cost of material to her was significantly less than it would have been had it been (any) 18ct gold. The appraisal value, however, is significantly higher.

Rolex charges nearly twice the price for a Pt watch than an Au one simply because it can. And because the market accepts the price delta. Because a platinum watch is perceived to have a higher value, higher desirability and higher exclusivity than a gold one.