Crazy metal prices, but how crazy is too crazy?

[Cocosgirl]

So you''ve all probably seen my quest for the perfect ring, which led me to some setting shopping at a local B&M jeweler that several friends and my mom have been to with very happy results. I found a gorgeous setting that is a well crafted semi-mount that just might work if my FF agrees. Here''s the thing -- they quoted me $2600 for the ring in 18K white gold (lots of pave and a gorgeous art deco style gallery) as is for the one she has in the case, OR if they had to order it special depending on whether or not my (eventual) stone would fit, assuming it wouldn''t be off by too much. Here''s the kicker - just for giggles (because platinum seems out of my range for the current market pricing) I asked her for a price to do the ring in platinum -- she quotes me:

$7200????????????????????????

Now, I kinda played dumb and said "well that seems outrageous, platinum is normally maybe 750-1K over white gold and she looked at me (very very young) and said "Oh no, platinum is normall 3 times what white gold is" HELLO!?!?!?!?

Is it me, or is that NUTS?

 

[avlis]

right now platinum is a little more than 2 times the price of 24k gold.

 

[MikeRato1]

$7200 does seem a bit high, but not by much nowadays

 

[choro72]

Woah, a mark up of 177% is waaaaaay too much! My jeweler''s quote was about 44% increase. Of course, that was a month ago.

 

[diamondseeker2006]

That is absurd!!!

I recently (in Feb.) got a quote for an antique reproduction setting (with some diamonds in it) from a reputable vendor and they quoted $2800 for 18k white gold and $3200 for platinum. There isn''t all that much metal in a woman''s ring. Most of the cost is the workmanship.

My very sincere advice is to go somewhere else. You certainly want a setting made in the correct size for both your ring and finger. You could get a custom pave ring by Leon Mege for less than that!

 

[strmrdr]

$7200 is smoking dope price

 

[Missrocks]

I find it believeable that some pave' platinum settings could be 7200, depending on how complicated the design (ie. three-sided pave'), being handmade or how much carat weight.
But obviously this is not the case, being the white gold version is 2600. Assuming diamonds and labor being the same, that would be a 5000 addition for just the cost of platinum??? The only way I could see this possible is if they were using A LOT of metal weight in that ring, and from the designs that you have been looking at, that doesn't sound the case. Agreed with Strmrdr- smoking dope price!

 

[MoonWater]

Are you sure the setting was not made solely of diamonds? Molded in such a way that they gave the appearance of seamless metal?

 

[FrekeChild]

Date: 3/11/2008 12:06:02 AM
Author: MoonWater
Are you sure the setting was not made solely of diamonds? Molded in such a way that they gave the appearance of seamless metal?

Hee hee hee MoonWater...You made me giggle.

 

[arjunajane]

lol strm and woonwater

 

[denverappraiser]

$7200 is a pretty pricy ring. They certainly exist but what gets you up there is the other components like additional diamonds, the labor to build the piece and the genius of the designer. That said, a $5000 differential between 18k and platinum is huge. In certain ways platinum is a bit more difficult to work than white gold, so the labor component will go up as well as the metal cost but, presumably, the designer will and other materials used will remain the same. Even at today’s prices, $1000 will get you enough metal for a typical ring. Unless this is an EXTREMELY heavy design, something else is responsible for the price differential.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[Gummybear]

I think some places are using the Platinum increase to hose people. My fiancee picked out his platinum wedding band and I called four places that carried the line, the most expensive was 3550 the least expensive was 2600. The least expensive quote was about two weeks after the other quotes. that is a 950 difference, some people do have "smoking dope" prices.

 

[lotsofsparkle]

That is a huuuuuuuge discrepancy. My platinum Tacori semi-mount was $7300, they quoted me the price of 18k white gold as only $1000 less.

 

[SYC]

That is crazy!!

But I have definitely noticed that most jewelers are charging more for their settings now with gold hitting $1000 an ounce, and platinum well over $2000 an ounce.

Does anyone know if diamond prices have gone up over the past year too relative to a couple years back? I don''t know, but with all other commodity prices surging, I would guess they may have too.... gah.

 

[CaptAubrey]

Date: 3/13/2008 10:58:15 AM
Author: SYC
But I have definitely noticed that most jewelers are charging more for their settings now with gold hitting $1000 an ounce, and platinum well over $2000 an ounce.

It''s not just current prices that are driving this but also fears of future increases (remember, retailers have to factor in restocking costs when pricing inventory). The prices of both gold and platinum are skyrocketing in large part because mines in South Africa are having to shut down because of a crisis in power generation that isn''t going to improve anytime soon. The national power monopoly in SA recently ordered the mines to reduce power usage by 10%, and the only way they can do this is by reducing their operations. Worse, there is no relief on the horizon because the power grid is already over capacity and there are a) no sources of alternative power to purchase elsewhere in Africa and b) no new capacity under construction.

Add that to the weak dollar and ever-increasing demand in China and India, and things are only likely to get worse. Gold at $1500 and platinum at $4000 within a year or two would not surprise me.

 

[SYC]

Date: 3/13/2008 1:27:59 PM
Author: CaptAubrey

Date: 3/13/2008 10:58:15 AM
Author: SYC
But I have definitely noticed that most jewelers are charging more for their settings now with gold hitting $1000 an ounce, and platinum well over $2000 an ounce.

It''s not just current prices that are driving this but also fears of future increases (remember, retailers have to factor in restocking costs when pricing inventory). The prices of both gold and platinum are skyrocketing in large part because mines in South Africa are having to shut down because of a crisis in power generation that isn''t going to improve anytime soon. The national power monopoly in SA recently ordered the mines to reduce power usage by 10%, and the only way they can do this is by reducing their operations. Worse, there is no relief on the horizon because the power grid is already over capacity and there are a) no sources of alternative power to purchase elsewhere in Africa and b) no new capacity under construction.

Add that to the weak dollar and ever-increasing demand in China and India, and things are only likely to get worse. Gold at $1500 and platinum at $4000 within a year or two would not surprise me.

I hadn''t thought of that! That makes sense that retailers consider future increases when pricing their products.

As for gold and platinum at $1500/$4000, I wouldn''t be surprised either! I''m happy I''m invested in the GLD ETF, but with prices as they are now, wishing I had bought more of it... and even though the prices might be somewhat good for some investment purposes, they are very, very bad for jewelry acquisition purposes!

 

[niceice]

I''m curious, did the jeweler happen to have the 18k version of the ring in-stock for $2600.00 in which case, they might be selling it at the original price since they had the ring in-stock before the price of precious metal started to sky rocket?

Here is a little insight into comparative prices of platinum and 18k white gold designer rings (I''m not providing specific style numbers to avoid tripping on any rules which may apply to the marketing of specific items by vendors on the forum):

Tacori setting in platinum $7,540.00 drops down to $5,770.0 in 18k white gold (diamond accents)

D. Vatche setting in platinum $2,036.00 drops down to $1,026.00 in 18k white gold (blank setting)

I''d shop the price of the setting you found online if you can identify the manufacturer, be sure that the total weight and quality of the diamonds is the same since many manufactures offer their production in a variety of diamond qualities.