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goldversusplatinum

Rough_Rock
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Dec 2, 2004
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I have been searching for a princess cut 1c total weight wedding band for my lady. As an example (they all are like this not abazias in particular- collusion I suspect) I saw this ring, which peaked my interest.

http://www.abazias.com/database/NewJewelryInfo.asp?stock=43809-wb

As you can see. Gold Price: $760.00 and Platinum Price: $1,125.00. I asked why, for the same ring, platinum is so much more expensive than gold - the answer time and time again is that platinum is twice as expensive as gold. As of 12/2 here are the gold and platinum prices Per Ounce:

Gold: 452.30
Platnium: 884.20

At first glance, Platinum is in fact twice as expensive as Gold - The platinum ring linked above is a deal (less than twice as expensive). That''s what they want you to think - Doesn''t that band contain about 5 grams of metal? (About 31 grams in a troy ounce.) That means $72 of gold in that ring and $140 of platnium. Shouldn''t the platinum ring be priced at $828.00 - or even $900 if you mark the gold-platinum increase up 100%?

I''ll eat my words if someone can explain that the manufacture of a platinum ring is much expensive process. I am not a jeweler and would love to hear why I am wrong. Thoughts? Any links to manufactures that don''t jack up platinum vs. gold prices?
 
You may be paying for the extra labor with platinum--it can be more difficult to work with.
 
another possibility?.... gold is mined in this country and platinum --anyone anyone???????know where...............the dollar has made all imports crazily expensive

example: i bought an item from cartier in may for $15, that was 12 one year earlier
 
No... not the goggles. It really takes different training, skills and experience to do platinum: sort of like having a second job if one starts working gold first.
 
No Scam, get out your knife and fork and choose which words you will eat carefully..... (some may hurt going down).

First, Platinum is more dense than gold - and a platinum ring of the same volume will weigh more. Thus even if the price were the same - a platinum ring cost more money for the same ring as there is more platinum in it (by weight). For 950 Platinum and 18K gold there is about 30% more platinum by weight for the same volumn (varies slighly depending on exact 950 and 18K alloy).

The second thing to consider is that today''s prices of gold and platinum are not the price of the gold and platinum in the rings you are looking at. Those rings were priced when they were manufactured against the cost of the gold and platinum when they were manufactured. Today, Gold is high - but I suspect that if you look at the price of Gold 6 months to a year ago that it was closer to $400 per ounce (it varies up and down from that).

Platinum has remained relatively constant for the last year at about $850 per ounce (and it varies up and down from that).

Overall, a platinum ring thus - just for the materials - cost on average closer to 2.12 times the cost of gold, but also that extra 30% in material due to the density of platinum to give you a total cost of about 2.76 the cost of gold. For the exact same ring volumn.

The third thing mentioned above is that in fact Platinum is harder to work with and takes more effort to finish (many jewelry shops won''t even try to polish your existing ring - but they will all quickly polish your gold ring). Thus, there is more manhours invested into Platinum jewelry. Almost anyone can cut and solder your gold ring to resize it - few have the tools and skills necessary to cut and reweld platinum.

Perry
 
Date: 12/2/2004 8
6.gif
4:12 PM
Author:goldversusplatinum

...

I''ll eat my words if someone can explain that the manufacture of a platinum ring is much expensive process...
Click to expand...

No need to eat your words here, this is a very valid question.

The biggest contributing factor after the difference in raw metal costs is the huge difference in finishing labor .

Platinum can easily take two to four times as long as gold to achieve an expert finish on a jewelry item.

Its as simple as that
 
First, Platinum is more dense than gold - and a platinum ring of the same volume will weigh more. Thus even if the price were the same - a platinum ring cost more money for the same ring as there is more platinum in it (by weight). For 950 Platinum and 18K gold there is about 30% more platinum by weight for the same volumn (varies slighly depending on exact 950 and 18K alloy).

We are talking small amounts of metal - Agreed that adds about 30 bucks to my example.
The second thing to consider is that today''s prices of gold and platinum are not the price of the gold and platinum in the rings you are looking at. Those rings were priced when they were manufactured against the cost of the gold and platinum when they were manufactured. Today, Gold is high - but I suspect that if you look at the price of Gold 6 months to a year ago that it was closer to $400 per ounce (it varies up and down from that).

Again, small amounts of metal. Even at the biggest spread between gold and silver my example still holds true.

Platinum has remained relatively constant for the last year at about $850 per ounce (and it varies up and down from that).


Overall, a platinum ring thus - just for the materials - cost on average closer to 2.12 times the cost of gold, but also that extra 30% in material due to the density of platinum to give you a total cost of about 2.76 the cost of gold. For the exact same ring volumn.


The third thing mentioned above is that in fact Platinum is harder to work with and takes more effort to finish (many jewelry shops won''t even try to polish your existing ring - but they will all quickly polish your gold ring). Thus, there is more manhours invested into Platinum jewelry. Almost anyone can cut and solder your gold ring to resize it - few have the tools and skills necessary to cut and reweld platinum.

This explains most of the difference- Labor probably makes up the majority of the price difference. I now understand now. I could add one more now that I have thought through the issue a bit more extensively - there is supply side competition and it would be really strange if all jewelers were "overcharging" for platinum vs. gold. I''m convinced now...- Thanks all.
 
Well said all of you.

The last one I can think of, is the recoverable scrap.

The ring you have sighted has been channel set. It is conceivable to say (based on weather it was cast or came as a plain band. I will assiume the later) that 1gram of metal went into the tin as the setter cut the holes to let in the stopnes to be later recovered as scrap. Plat scrap pays less then gold, as refining plat is a much more labour intensive task. This situation is especially true of handmade rings, where you produce volumes of scrap that you can't easily re-use, wheras in gold you melt it and use it again.

Another thing regarding workmanship, not covered. The setter (and engraver) would have had to take his engraving tools back to the sharpener every hole, another reason plat takes longer.

The 'Gone Platinum' page is bang-on goldversusplatinum. Thanks for that

PS
 
so what you gonna do to eat your words???

here''s a suggestion. admit that you should not have been so quick to shoot your mouth off and imply a "scam" when you are so clearly without a clue.

it''s ok to be without a clue. it is not ok to shoot your mouth off recklessly and insult vendors when you are without a clue.
 
It wasn''t that bad IMO. I am not sure he was serious.

I know that many jeweller shops mark up their prices by x percent. If it is double then a diamond that cost 1k is 2k in the shop, but if it is 10k it becomes 20k. Very nice indeed if you can get it.

It never made sense to me, but it is true.

On the other hand, there are jewellers who make nothing on the mark-up of diamonds, but charge for their work and the effort in supplying diamonds. This is how they keep their manufacturing costs in-line with cheap imports from countries with low wages.

I was thinking of this in relation to the plat'' prices. You could charge 100 to offer a ring after you factor all the expenses, or have a percentage mark-up.

If you are selling bulk, as internet vendors often do then you can offer any $priced goods at a flat rate. This may or may not affect the price. In my experience this leads to higher prices in services such as polishing and sizing, which are reduced and the after sales service especially regarding the value of items inherit in higher priced sales must be incorporate into the expenses.

Not exactly relating to the platinum question here, but I think in this way, the argument is true at times, though not in the example given.

Cheers,

Phillip
 
Wow - Imback is such a tough guy....you told me. You know exactly what you can do with your comments.... I wasn''t badmouthing anyone.
 
Another fact to keep in mind is that gold ( 14k ) is only 58% pure gold the rest are alloys, and 18k is 75% gold.

On the other hand platinum used in rings is 95% platinum, so not only do you have the higher density of metal, it is also "purer" .

i.e platinum 950 - 95% of $ 850.00 approx. 800.00

14 K 58% of 450.00 approx. or approximately 275.00 ish

similar situation with 18k but 75% of the pure (24k) price.

Hope this helps.

Rockdoc
 
I thought that was already factored into the maths. Well spotted
 
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