“Inherent value” of precious metals?

[cerendigit]

In the world of watches I sometimes hear things such as:

“I would never pay such a markup for a steel watch, I’d rather add a bit more and get something made of gold”

“Id rather save up and get the blue dial Pepsi. Because it’s made of gold”

“.... People didn’t feel like spending that much money on a watch that is not made of precious metal .... “

I don’t share these opinions, but maybe I’m missing something.

Do you think that a watch made of gold is “better” (all else being equal of course) and thus justifies a higher price. Whereas a high price for a steel price is “not justified”? If so why?


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[locutus49]

All metals are made of atoms, just rearranged differently. Humans assigned values to each metal. Objectively one does not cost more than another: humans long ago decided which metals they value more. If you value steel more than gold, great. Now you have to convince the rest of civilization to go along with you.

[UK_]

Originally Posted by locutus49

All metals are made of atoms, just rearranged differently. Humans assigned values to each metal. Objectively one does not cost more than another: humans long ago decided which metals they value more. If you value steel more than gold, great. Now you have to convince the rest of civilization to go along with you.

‘Cost’ means nothing - the price of something is all a kit supply and demand.

Water is precious for life but we have lots of it, gold is scarce but has a high demand.




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[wach16]

Originally Posted by UK_

‘Cost’ means nothing - the price of something is all a kit supply and demand.

Water is precious for life but we have lots of it, gold is scarce but has a high demand.




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Exactly!

[YGRLX]

Originally Posted by locutus49

All metals are made of atoms, just rearranged differently. Humans assigned values to each metal. Objectively one does not cost more than another: humans long ago decided which metals they value more. If you value steel more than gold, great. Now you have to convince the rest of civilization to go along with you.

Congrats! You won the most ignorant comment of the day!

[4 Aussies]

One pound of SS 304 2B grade is $1.58 a pound

One pound of pure 24K gold is valued at $21,000.00

You tell me what metal is worth more????

[TswaneNguni]

Rolex is the new gold standard .

[cerendigit]

Originally Posted by 4 Aussies

One pound of SS 304 2B grade is $1.58 a pound



One pound of pure 24K gold is valued at $21,000.00


:

Interesting. Are you saying that you are more willing to pay a high price for a gold Rolex because you know that the base material costs more _to_ Rolex?

So does that mean that if the wages in certain parts of Switzerland were higher you would be willing to pay more for watches from that region because you know they cost more to make?

(This is a different opinion than “I like gold because it looks good and it’s rare”)



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[4 Aussies]

Originally Posted by cerendigit

Interesting. Are you saying that you are more willing to pay a high price for a gold Rolex because you know that the base material costs more _to_ Rolex?

So does that mean that if the wages in certain parts of Switzerland were higher you would be willing to pay more for watches from that region because you know they cost more to make?

(This is a different opinion than “I like gold because it looks good and it’s rare”)



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Yes and Yes! Bottom line, you get what you pay for!!

[Andad]

Originally Posted by YGRLX

Congrats! You won the most ignorant comment of the day!

And I thought it was one of his more intelligent posts.

[Jona]

Originally Posted by directioneng

And I thought it was one of his more intelligent posts.

That's how I feel about your post.

[locutus49]

Gee, thanks. I appreciate the insight.

Originally Posted by YGRLX

Congrats! You won the most ignorant comment of the day!

[mountainjogger]

Originally Posted by YGRLX

Congrats! You won the most ignorant comment of the day!

And yours wins the comment for the rudest I have read this morning. Surely you can present your opinion without name calling a fellow member, who, by the way put the time and thought into expressing his opinion without insult. Might want to put the effort in an give this another try.

[joli160]

Originally Posted by locutus49

If you value steel more than gold, great. Now you have to convince the rest of civilization to go along with you.

This made me spill my coffee

[beshannon]

Originally Posted by locutus49

All metals are made of atoms, just rearranged differently. Humans assigned values to each metal. Objectively one does not cost more than another: humans long ago decided which metals they value more. If you value steel more than gold, great. Now you have to convince the rest of civilization to go along with you.

Completely agree

Personally I value movements over case materials so stainless suits me just fine

[Zakalwe]

It’s all about how it makes you feel.

Apply logic vigorously enough to this topic and you end up concluding, absolutely correctly, that spending more than a few hundred bucks on a wrist-mounted time-keeping device is not rational period, regardless of what it’s made.

[MTdweller]

Originally Posted by Zakalwe

It’s all about how it makes you feel.

Apply logic vigorously enough to this topic and you end up concluding, absolutely correctly, that spending more than a few hundred bucks on a wrist-mounted time-keeping device is not rational period, regardless of what it’s made.

Very true.

[aayates]

Originally Posted by Zakalwe

It’s all about how it makes you feel.

Apply logic vigorously enough to this topic and you end up concluding, absolutely correctly, that spending more than a few hundred bucks on a wrist-mounted time-keeping device is not rational period, regardless of what it’s made.

It's a hobby and it's fun, but not a value proposition. It's just great to see a watch you like on your wrist. If you're trying to justify price vs. value you won't get there from here.

[brandrea]

Originally Posted by Zakalwe

It’s all about how it makes you feel.

Apply logic vigorously enough to this topic and you end up concluding, absolutely correctly, that spending more than a few hundred bucks on a wrist-mounted time-keeping device is not rational period, regardless of what it’s made.

Pretty much

[tadbart]

The Plat:Gold ratio would indicate that a gold Daytona should cost more than a Platona.

We all know that's not the case. And I don' think it's strictly because platinum is nore difficult to work, than its yellow, more malleable counterpart.

[Brew]

I think gd is better than ss. I think this is how the real world looks at the question. Kitchen utensils are made from stainless steel. Things of value are made from precious metals.

[Boba Fett]

I feel like the OP is tired and emotional. It is a confusing post with an unclear question further muddied by the fact you can buy a new full PM Daytona cheaper than a new SS Daytona on the secondary market.

[Partagas]

Gold is quite scarce compared to steel. So it costs alot more. I can reconcile that in the cost of a watch. I'm one of those that would never pay $10-15k+ for an all stainless steel watch, but would for one in a precious metal. It just doesn't add up for me in all steel. Many of my watches have a stainless case, and some bracelet. And I love 'em all, but none of them were anywhere close to $10k+ in all stainless.

The premium for platinum is pretty steep, and while I'd love a platinum timepiece, unless I hit the Powerball I'm very unlikely to ever spend $40-50k plus for a modern platinum watch.

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[macrowatch]

So I bought a gold coin for my nephew’s piggy bank. Face value says $50 US. Does the coin have more inherit value than my $50 paper bill?

Tongue and cheek aside, if not had the same market value, paper is much more functional to use for payment and carrying around, but boy that shiny coin sure is pretty. Maybe if they both started out only being worth their face value the allure to that shiny non functional yellow would soon drive up market price and create a spread between the functional paper and less functional gold coin.

[Jabbo84]

Gold is Gold

[cerendigit]

Originally Posted by Jabbo84

Gold is Gold

This is exactly the kind of things that triggered me to ask this question.

From reading this thread all I can make is that gold is “valuable” because:
- it’s shiny and pretty
- it’s more rare than steel thus feels “special” and not so common.


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[Zakalwe]

Originally Posted by cerendigit

From reading this thread all I can make is that gold is “valuable” because:
- it’s shiny and pretty
- it’s more rare than steel thus feels “special” and not so common.

Yup. End thread.

[RJRJRJ]

Originally Posted by cerendigit

This is exactly the kind of things that triggered me to ask this question.

From reading this thread all I can make is that gold is “valuable” because:
- it’s shiny and pretty
- it’s more rare than steel thus feels “special” and not so common.


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It's been valuable for thousands of years and continues to be. Whether you agree with it or not is another story. That $20 bill you have is just a piece of paper.

[Burlington]

Gold has long been held in high regard by human civilisation - as jewellery and currency it is better than steel.

As a material for a tool, steel wins out.

Choose the right metal for the job.

[jrs146]

I hardly assign a value to the meal at all when buying a watch. I simply buy what I like. I gave steel prices that are more expensive than my gold pieces. And I care not.