whit
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I don't think you will see much difference in the spread
between platinum and gold even with gold prices and platinum prices so close. Years ago when platinum and gold were within dollars of each other, the spread was still very substantial, about $8-10,000. As I was told then, the reason was in machining and case work and I feel certain the same issues exist today. Although, with CNC and computer controlled machining capabilities, I would have thought there would be some cost savings and maybe there were...just not passed on to the retail level. If the market will bear the spread, I guess the prevailing thought would be ...why change it?
Interesting tidbits from Thierry Stern interview
Some interesting tid-bits and macro observations by Mr. Stern in an interview that was published by Bloomberg today. Story reprinted below. Can't find link to video interview but perhaps this is published later today: What does he mean by "when he's not w...
Hmmm, that is somewhat surprising...
That is indeed somewhat surprising. Thierry Stern not wearing a watch to tell the time.
Sorry but I don't get it
When people buy a Patek the cost of the gold is just a little fraction of the watch. Even when speaking about the cheapest Patek you still have to pay more or less 13.000 euro for a simple Calatrava. How much gold does a calatrava use ? 60 grams ? It won'...
That's obviously not the way the industry counts
Hi, Add to the gold content value of a watch and this added value is then multiplied by the standard factor. So if a production cost is let's say 3 000 (purely theoretical ) and then multiplied by 5 to arrive to a retail price of 15 000, then if you add 5...
5-fold on the gold?
So the industry wants to make a 5-fold markup on the gold too? Then, they shouldn't be surprised if they loose the market touch ... Eric09
I understand your point
but the price of gold is only one off the several things that make the price. And if not all the separate items rise with 30% it is imo unnecessary to raise the total cost by 30 %, I know they would want to but if they can't because otherwise the watch wo...
Yes but...
Hi, Michelin costs are much more linked to raw materials than Mercedes. The more manufactured the product is, the lesser the influence of raw materials. Cheers Dje
Let's have some Stainlees Steel!
I myself would love to own several referances in Stainless Steel. I am sure that I am not alone. I suspect Patek could add this metal in large numbers to many of their referances if gold became cost prohibitive. Maybe the profit margin could be maintained...
I agree with your thoughts to a point,
but this presents itself, to many manufacturers, as an opportunity (justification) to increase prices which most folks can understand. What happens when gold levels drift back to the $400-500/oz levels? Folks have a much more difficult time understanding ...
Effect on Platinum
Almost as interesting is what this means for platinum. With gold trailing closer and closer to platinum, how will the watch companies be able to place such high retails on platinum pieces, specifically high complications, when the retails between their go...
I don't think you will see much difference in the spread
between platinum and gold even with gold prices and platinum prices so close. Years ago when platinum and gold were within dollars of each other, the spread was still very substantial, about $8-10,000. As I was told then, the reason was in machining and c...