Buying precious metal models - is it a good value proposition?

[GrailTime]

I have never really considered a Rolex in precision metal, mainly because I never thought one would suit me, plus I didn’t think the extra cost was worth it.

I have tried my wife’s two tone fluted DJ36 with yellow gold and I felt it wasn’t my style. I have a light skin tone and think the yellow gold is best on those with darker skin - just my opinion.

Last week I was in an AD, kissing butt in order to remind the SA that I’m still waiting on a Green DJ41. The GMT CHNR (Root Beer) happened to be in the case next to her desk so I asked to try it on. Wow, just wow. The watch is stunning and the ever rose gold, I felt, actually suited me. More subtle and modern than the yellow gold, even though I would never have dreamed of wanting to wear rose gold.The rose gold compliments the brown in the dial so well.

Obviously this model comes at a cost - circa $6k more than a SS GMT.

What do you guys think of precious metal as a value proposition? I’m not talking about reselling as that would almost never be a consideration for me - I buy to wear.

Part of me thinks that an extra $6k for a little gold is poor value. There maybe only an ounce of gold in a two tone GMT, which will be 14 carat - approximately $1500 at market price. Yet Rolex are marking it up for $6k more over the SS GMT.

But then again, the stainless steel used to make a watch is worth next to nothing so getting some metal that is actually worth something may be a better value proposition.

Then there is also the thought that that extra $6k could got halfway to hitting another SS Rolex.

Interested to hear other peoples thoughts.

[Kevin of Larchmont]

Stick with your original thought, not a value proposition. If you’re not buying for love, don’t buy it.

[roadie1]

I think you’re overthinking it. If you like it, get it. And the gold is 18k. Cheers!

[Njkdog]

You can use a color wheel to figure out which metals go good with which skin tones.

But I do agree with you. I think yellow gold looks great on dark people. Your color palette definitely does influence which watches look good on you. But it also comes down to personal preference. Something can definitely be technically wrong, but if you like it, go for it.

As far as value proposition, though, pay a few thousand extra dollars for two tone? You’re getting only a few hundred dollars worth of gold. And on the secondary market, it won’t hold a few thousand dollars, it’ll hold something, but not that much. So financially value wise, not worth it. But if you actually like it, then it is worth it.

Also, the modern ones are 18 karat

What I think is very worth it is a vintage 34 mm date in solid gold. You can find them for like eight 9000. But again, you have to like it and want to wear it.

[1William]

I am not a TT fan nor do I like RG. With that said if the watch works for you and you want it then go for it. Value wise I prefer full PM to TT.

[Calatrava r]

These are luxury goods purchases which are not supposed to make any financial sense. You buy because you love them and can afford them.

[Dave O]

All Rolex models are luxury items. All of them cost more than they probably should (even the SS models), and in reality, it's just a watch. But that's not the point. A luxury watch purchase (or any luxury purchase for that matter) should be about what puts the biggest smile on your face. If you like it, love it, have the means to afford it, then get it. If you like the TT better then SS then get it. If you are thinking about "is the extra gold worth it" then you are in fact thinking/concerned about value proposition and in that case you are in the wrong hobby my friend.

[KatGirl]

Originally Posted by roadie1

I think you’re overthinking it. If you like it, get it. And the gold is 18k. Cheers!

Thanks for correcting him on the gold content. Now, I don’t need to…
OP, if you loved that watch, get it. I had the same feeling about TT, until I tried on the TT Wimbledon, and was wowed by the look of it, on my wrist. My husband had the same reaction, when I tried it on. Now, I own one. You never know what will attract you, in this crazy hobby. In the case of the Datejust, the gold adds about $3,000 to the price, but it’s well worth it. As far as the extra cost, or resale value, I never consider those things, when picking out a new watch.. The only thing that matters is whether or not I want to wear it regularly.

Kat


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[colonelpurple]

The premium of TT over SS is not much and you should buy it if you love it.
The bottom line is that once you are spending so much money on a watch you should only get what you want.
If you are stretching yourself financially then don’t buy either.
If your life won’t be effected a jot by loosing the entire cost of the watch, that is the benchmark to buy.

[Krash]

Originally Posted by Calatrava r

These are luxury goods purchases which are not supposed to make any financial sense. You buy because you love them and can afford them.

Exactly.


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[joli160]

The CHNR is the arguably the nicest GMT ever made. To me it is worth the extra $$$.
With luxury stuff prices never make sense.
If so they would have to sell SS watches for next to nothing. Stainless steel is really cheap.

Btw it is 18K instead of 14K

[codecow]

A TT I wouldn’t call PM.

PM are worth it because they’re heavy and unique in look and also wrist feel but of course that’s subjective.

[Dave O]

Originally Posted by joli160

The CHNR is the arguably the nicest GMT ever made. To me it is worth the extra $$$.
With luxury stuff prices never make sense.
If so they would have to sell SS watches for next to nothing. Stainless steel is really cheap.

Btw it is 18K instead of 14K

It was, until the GRNR was released last year.

[Hollie_Rollie]

No.


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[GrailTime]

Apologies, I did mean 18k gold.

Same principal, though. Price of gold is circa $2000 per oz of 24k. So you may be getting $1.5k of gold in a TT GMT.

I think I read there was about seven oz of gold in a Day Date.

[GrailTime]

You guys are totally right. Purchasing luxury items like Rolex doesn’t always make sense.

I’m sure I’m not the only one though that has thought that the $6k upcharge may be better spent towards a second SS.

But that Root Beer is something else!!!

[Robf52]

Originally Posted by Dave O

All Rolex models are luxury items. All of them cost more than they probably should (even the SS models), and in reality, it's just a watch. But that's not the point. A luxury watch purchase (or any luxury purchase for that matter) should be about what puts the biggest smile on your face. If you like it, love it, have the means to afford it, then get it. If you like the TT better then SS then get it. If you are thinking about "is the extra gold worth it" then you are in fact thinking/concerned about value proposition and in that case you are in the wrong hobby my friend.

This.

[enjoythemusic]

Does it make you / your wife smile?

Will it enhance your enjoyment of time?

[brandrea]

Originally Posted by gaffs

Apologies, I did mean 18k gold.

Same principal, though. Price of gold is circa $2000 per oz of 24k. So you may be getting $1.5k of gold in a TT GMT.

I think I read there was about seven oz of gold in a Day Date.

Is you look at it that way, stainless steel is even a worse proposition

[Travis29]

You can buy PM under retail from grey.

[EEpro]

For about $40,000 you can buy a tube of American Eagle 1 oz coins (22K grossed up to 1 oz of pure gold)

[colonelpurple]

Originally Posted by gaffs

Apologies, I did mean 18k gold.

Same principal, though. Price of gold is circa $2000 per oz of 24k. So you may be getting $1.5k of gold in a TT GMT.

I think I read there was about seven oz of gold in a Day Date.

1. The price of quantity of gold or other PM in a watch has no relation to the cost. It's just a way of leveraging the profit.

2. PM watches loose 1/3 of the value the second you walk out of the shop (almost the price of a TT on its own)

Nevertheless. If its for life, and for your enjoyment, and has zero financial impact to your lifestyle, then sure, it's up to you.

I am thinking about one at the moment. But I'll probably have to do the extension my wife wants first

[AK797]

Originally Posted by gaffs

Apologies, I did mean 18k gold.

Same principal, though. Price of gold is circa $2000 per oz of 24k. So you may be getting $1.5k of gold in a TT GMT.

I think I read there was about seven oz of gold in a Day Date.

You want to go down the pub and explain how much steel is in a Submariner and that it costs nearly £10K, depending on the pub you won't come out of there with working legs... or the watch. Luxury has no sanity, its the whole point.

[PenDelicate]

Oh, it's a dreadful value proposition.

But I still bought one.

[4reRlxGuy]

In my case I got tired of waiting for a Pepsi. So instead of paying low 20s I opted to to pay mid 30s for a white gold Pepsi. The blue dial matches the bezel IMHO.

[GrailTime]

Originally Posted by AK797

You want to go down the pub and explain how much steel is in a Submariner and that it costs nearly £10K, depending on the pub you won't come out of there with working legs... or the watch. Luxury has no sanity, its the whole point.

Originally Posted by brandrea

Is you look at it that way, stainless steel is even a worse proposition

I mentioned this in original post. Yes, a two tone may be 60% more, but at least you are getting some precious metal. The value of steel is next to nothing.

[4reRlxGuy]

Originally Posted by 4reRlxGuy

In my case I got tired of waiting for a Pepsi. So instead of paying low 20s I opted to to pay mid 30s for a white gold Pepsi. The blue dial matches the bezel IMHO.

I figured I was paying below list and no tax

[GrailTime]

Originally Posted by colonelpurple

1. The price of quantity of gold or other PM in a watch has no relation to the cost. It's just a way of leveraging the profit.

2. PM watches loose 1/3 of the value the second you walk out of the shop (almost the price of a TT on its own)

Nevertheless. If its for life, and for your enjoyment, and has zero financial impact to your lifestyle, then sure, it's up to you.

I am thinking about one at the moment. But I'll probably have to do the extension my wife wants first

You’re right. PM is a way to leverage more profit from the customer. It’s seen as being more luxurious, thus Rolex will charge an even higher premium. The luxury market makes little sense from a value perspective.

I suppose with watches the only think you can pin value to is the knowledge that a SS will probably hold re-sale value better than a PM or TT. That at least makes me feel like I’m getting “good value”.

I love the Root Beer, but I think I will probably wait on a SS GMT and use that difference towards the next watch in my collection.

[brandrea]

Originally Posted by gaffs

I mentioned this in original post. Yes, a two tone may be 60% more, but at least you are getting some precious metal. The value of steel is next to nothing.

Which is why equating the price of gold, platinum etc doesn’t really relate to what the watch is priced at.

Raw materials really don’t equate to the worth of a watch to the owner


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[GrailTime]

Originally Posted by 4reRlxGuy

I figured I was paying below list and no tax

Which at least makes you feel better about the purchase.

You may have wanted the SS GMT for $10k but maybe better to pay $10k lass than retail for the white gold than $10k more for the SS.