Gold Pricing versus Stainless Pricing

[GMTJOHNNY]

I am sure the answer is REAL SIMPLE.
Why the HUGE jump in price when using YG?
I saw the DJ in SS $5150 2008 MSRP.
DJ in YG $19500 2008 MSRP. Big difference.

I can understand an increase for using gold but 3+ times the price?
YG is so much easier to work than the hard steel Rolex now uses.
Same movement, etc. Sure, Gold is $1000+ an ounce, but there are not THAT many ounces in a Rolex.

I couldn't find the thread that someone must have started but I am considering the YG GMT IIC and the price bump from SS to YG is a "WOW!" to say the least. Only differnce seems to be the gold.

So, someone please slam me into a reality check. Thanks!

[Green Sub]

I'm curious on how many ounces of gold or platinum are in solid precious metal Rolex watches. Any data out there?

[dsimon9]

Well, I did a bit of research on Google and came up with a site charging $9.20 per foot for a 1/4 X 3/4 Bar (.65 lbs or 10.4 ounces or $0.89/ounce) of 304 steel. It is not the same grade as the steel used by Rolex, but even if its cost was 10X you can see where it is a lot cheaper than gold.

Also, 18k gold is 75% gold, which translates into $750/ounce based on $1000/ounce for 24k gold. Add to it the added security to prevent employees from walking away with the stuff, any reclamation processes they may have in place, people's adoration of the metal, and finally greed. After all they need to make money.

Not sure this explains all of it, but maybe other members can add to the thread.

Dex

[Tools]

The only difference is usually the gold....Sometimes the gold models get any new upgrades before the SS models do though.

However, jewelry is not sold based solely on the cost of the materials used. Platinum costs 3 times that of gold, but the platinum models are not 3 times the gold.. Never-the-less, the markup on precious metals and jewels is always more than the mark-up on the basic (SS) models.

Supply and demand is the economics of sales...... High demand, high prices. low demand, low prices.. The Daytona is the perfect example. SS Daytonas go for as much as the TT models in some venues..

Besides, you can always get a good discount on the models with gold in them..sometimes as much as 15% or more... You may be lucky to see any discount on some SS models..

[springer]

If I had to guess, I'd say there is not more than 5 oz of 18k gold in that gold GMT.

[SPACE-DWELLER]

Although the below info might be dated (due to DD updates and increase of gold prices), here is what the (f)actual cost of a Rolex DD in YG is/was:

Originally Posted by padi56

The typical gents Rolex President looks rather impressive due to its large mass and weight not to mention the large price tag that goes with them.But the actual gold value is in a Rolex ? like all gold watches are in reality very poor value for money .Below is a breakdown of a 18kt President . Without the movement, the crystal and other non-gold parts. Each was weighed using a laboratory grade scientific balance.Now all the values were based on the spot price then of gold at $400.00 per troy ounce,so do your sums on todays price.

Now all precious metals are weighed using the troy system. One troy ounce contains 31.1 grams of a particular precious metal. There is 480 grains in one troy ounce.Now If for example we use the above spot price for gold at $400.00 per troy ounce, the value per gram would be $12.86. Using these standards, the actual gold value in the Gents Rolex President would be just $963.27.

The case ring weights 18.5 grams. Contains 13.875 grams of pure gold. It has a value of $178.43.

Case back weighs 7.21 grams.And contains just 5.41 grams of pure gold. It has a value of $69.57.

Bezel weighs 5.30 grams. Contains 3.98 grams of pure gold. It has a value of $51.18.

The bracelet weighs 68.85 grams. Contains 51.64 grams of pure gold. It has the largest value at $664.09.

The total value of the pure 24kt. gold in the average Rolex President is $963.27.Above is based on a 18ct watch.

[DSJ]

Originally Posted by SPACE-DWELLER

Although the below info might be dated (due to DD updates and increase of gold prices), here is what the (f)actual cost of a Rolex DD in YG is/was:

Nice paste Bo. Nice post Padi. It shows, that even in today's prices, the gold in an all gold men's Rolex does not exceed $3K in commodity value. So two words for the reason in price difference for gold watches over SS: PROFIT MARGIN.

[vjb.knife]

And that roughly $1000 worth of gold in a Rolex costs about $15000 over a similar stainless model.

Hey what can I say about it I have a two tone GMTIIC and I like it but an investment in precious metals it is NOT.

[Tony-GB]

I remember reading that Rolex don't buy other companies gold, they have their own mine(s). If this is true, then the cost of this will have to be recovered & that usually means the consumer pays...

Has anyone else heard this?

[DSJ]

Originally Posted by Tony-GB

I remember reading that Rolex don't buy other companies gold, they have their own mine(s). If this is true, then the cost of this will have to be recovered & that usually means the consumer pays...

Has anyone else heard this?

I do not think this is true. They do have their own FOUNDRY which alloys the gold in-house.

[ravster]

Originally Posted by DSJ

I do not think this is true. They do have their own FOUNDRY which alloys the gold in-house.

However, I am totally amazed at the richness and beautiful almost orange gold of my DD.
I have looked at other 18kt. items but none seem to match my Rolex!
Maybe I am looking with biased eyes?
Antony

[vjb.knife]

Originally Posted by Tony-GB

I remember reading that Rolex don't buy other companies gold, they have their own mine(s). If this is true, then the cost of this will have to be recovered & that usually means the consumer pays...

Has anyone else heard this?

That is rediculous. Do you think that gold is more expensive if you own the mine? If it was true that Rolex actually owned a mine then they would be getting their gold for far less than spot value which I am sure that they do anyway.

[artbypaul]

Originally Posted by vjb.knife

That is rediculous. Do you think that gold is more expensive if you own the mine? If it was true that Rolex actually owned a mine then they would be getting their gold for far less than spot value which I am sure that they do anyway.

AGREED! The sole reason for buying your own mine is to CUT costs. Once you realize you're not even getting $1,000 in gold in a President watch you might be wise to reconsider or buy pre-owned, which is still not a wise investment by any stretch of the imagination.

Paul

[wuzzzer]

Originally Posted by eq2675

I'm curious on how many ounces of gold or platinum are in solid precious metal Rolex watches. Any data out there?

A men's 18k Day-Date weighs around 185 grams but that includes the movement, crystal, etc.

[Art 1]

Simple answer really, people have always lusted for gold and are willing to pay a premium to have jewelry and watches that are gold. The manufacturer makes more money. There is no other reason than that.