Confused

[Mrsgardener]

I was quoted $900.00 for a platinum wedding ring setting back in Oct 2005. Now on this day(1/10/06) the price, for the same ring, is $1400.00!!!!-

-- I was told that the Platinum market goes up and down. Apparently the cost of it is up now . --- I was told that the same ring company can make me the same setting out of white Gold and Palladium, which will be nickle free. I have a nickle allergy.--- I have a chose on waiting for Platinum to go down or have the other made.-- Anyone have any suggestions?-- Thanks!

 

[Kaleigh]

The price of platinum is up right now, and I don''t see it going down any time soon. Could be wrong of course.

 

[ep6585]

Platinum is currently over $1000 per ounce. Platinum Prices

 

[ep6585]

Here''s a five year gold chart.

 

[strmrdr]

yea vendors are using the high plat prices as an excuse to jack up prices the price increase quoted would pay for plat by itself.

 

[strmrdr]

95%PT/5%/RU casting grain in 10-20 dwt quantity:
at $800 per T.O. $38.71 per dwt
at $900 per T.O. $43.30 per dwt

so $100 T.O. increase is about $4.59 increase per dwt.

so lets add it up to get an aprox price at $1000 per dwt
47.89

Lets be generous and call it $50 per dwt.

now lets find a nice heavy ring..



http://www.stuller.com/public/productdetails.aspx?grp=j&new=0&prodGrpID=bc109c0e-ac12-4e54-8b4e-687392179fab&categoryID=173478b0-5f30-426d-9759-7e20232aeb6d&iid=245821

That one looks big and heavy.

5.45 DWT x $50

There is $272.50 cost of plat in that ring if it were that specific alloy.

Now how much would it be at $800 per T.O.

5.45 DWT x $38.71 = 210.97 cost of plat in that ring if it were that specific alloy.

$50 bucks and change difference in the plat alloy cost with a $200 increase in the cost of plat per T.O.

Tell me again why the price went up $500?????????

 

[Mrsgardener]

Thanks for responsing.I agree with you, re the price must be @ it''s high.

 

[Mrsgardener]

Thanks for the useful infor!

 

[strmrdr]

Lets break down the rest of the costs.
lets add 2dwt for waste which is high.
7.45 x 50 = $372.50
A large casting house in Chicago using the latest in equipment charges
$200 for one of casts from wax.
Each additional is $100 of the same alloy.

$572.50 for one ring so far

Now printing a wax from a cad drawing they get around $50-$75 for on a one of item and if I remember right $15-$20 each one there after.
so lets say its a fairly simple ring so lets use $50

We are up too 622.50
Add 2 hours labor at $40 an hour for an employee.
$702

add 35% profit:
$947.70

add in a setting charge and what not and $1000 out the door.

Remember those are small shop one of costs volume deals cut a lot off those costs.
Where does the other $400 come in pure profit.

$900 was a nice price and $1000 to be generous would be a nice price today on that weight of a custom ring.
If yours was lighter adjust price accordingly :}

 

[Mrsgardener]

-- Yes.. I agree quite a mark up. I did call another jewelry store. They wanted $1,925.00 for the same setting that I was offered for $900.00 in Oct.

 

[Mrsgardener]

-- Wow you have a remarkable mind!----Wonder why the cost goes up---- demand or lack of the metal or both?

 

[strmrdr]

18k Palladium white Gold @ $500 T.O. is $26.70 per dwt
at $550 T.O. it would be around $28.61 per dwt

18k nikel white gold @ $500 is 23.13
at $550 its $25.04 per dwt

So dont pay a large markup for Palladium WG over standard WG :}

 

[strmrdr]

Date: 1/10/2006 11:49:09 PM
Author: Mrsgardener

-- Wow you have a remarkable mind!----Wonder why the cost goes up---- demand or lack of the metal or both?

Its a comodity market and some people are getting scared of stocks and land and buying gold and Plat as a hedge against inflation.
Also its been oversold for a long time with the mines selling the production several years in advance and there is a limit to how far out they can sell and they are getting close to it.

I think id better buy a bullet proof vest after posting this.

 

[WinkHPD]

No need for a bullet proof vest. Just get into the market and be a jeweler for a while and find out that you pay at least $175 to have a cad cam art and wax and as much as $350 if the piece is more complex and requires an RPS wax rather than something turned out on the mill. A good mill will cost well over 10k and the RPS machines START at 75k.

I normally pay between $125 and $150 JUST for the wax and cad cam is at least $50 just for the art, so the cheapest I pay for cad and wax is the $175 above.

Your costs listed above are too low, and the cost for working with platinum is higher as it takes longer to get a good polish than with gold. You can not figure your real costs just by looking at the raw cost of materials.

Even if you could we jewelers are entitled to make a decent living or we should go work somewhere else. You are usually much more on the mark with your posts, but you shot wide and short on this one.

Wink

 

[strmrdr]

Wink that ring is on the heavy side and I allowed a large amount for waste and a 35% profit I dont see them as being off.

Thanks for the info on your prices Ill add it to my knowledge base with the rest of the numbers.

Now if someone wants a MM level of finish then all bets are off on cost.
Remember that in oct the cost of the ring in the original post was $900 including cads and everything.
Now its $1400 which is not justified by the increase in Plat prices.

Why is it $1400 .. for no other reason than they think they can charge that.
Am I wrong in pointing out that the costs dont add up?