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15 May 2008, 12:43 PM | #1 |
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Gold Pricing versus Stainless Pricing
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!
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ROLEX DAY DATE 118238 (2007) ROLEX DAY DATE 18238 (1997) ROLEX GMT 16750 PEPSI (1987) ROLEX AIR KING 14000 (1991) ROLEX GMTIIC TT 116713LN (2008) |
15 May 2008, 01:03 PM | #2 |
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I'm curious on how many ounces of gold or platinum are in solid precious metal Rolex watches. Any data out there?
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15 May 2008, 01:26 PM | #3 |
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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 |
15 May 2008, 01:31 PM | #4 |
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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..
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15 May 2008, 01:48 PM | #5 |
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If I had to guess, I'd say there is not more than 5 oz of 18k gold in that gold GMT.
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15 May 2008, 11:46 PM | #6 | |
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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:
Quote:
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16 May 2008, 12:56 AM | #7 |
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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.
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16 May 2008, 01:03 AM | #8 |
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And that roughly $1000 worth of gold in a Rolex costs .....
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. |
16 May 2008, 01:04 AM | #9 |
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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?
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16 May 2008, 01:40 AM | #10 |
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I do not think this is true. They do have their own FOUNDRY which alloys the gold in-house.
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16 May 2008, 02:17 AM | #11 | |
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Quote:
I have looked at other 18kt. items but none seem to match my Rolex! Maybe I am looking with biased eyes? Antony |
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16 May 2008, 02:19 AM | #12 |
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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.
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16 May 2008, 02:47 AM | #13 | |
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Quote:
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 |
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16 May 2008, 08:42 AM | #14 |
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16 May 2008, 09:11 AM | #15 |
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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.
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