These Rolexes Look Identical. Why Is the Gold One $17,000 Cheaper?
Both watches are an investment, but one trades at a much higher premium to fundamentals.
The white gold (left) and platinum versions of Rolex’s Day-Date watch.
Source: Rolex
If a cynic is someone who knows the price of everything and the value of nothing, then a connoisseur is someone who can see where value really lies. Welcome to Relative Value Trade, a column where we seek value in a wide range of goods and services. Sometimes, that value will be a function of fine judgment and critical acumen. This month, however, we’re taking our cue from the commodities market and looking at the bullion value behind horological craftsmanship.
On the left is the 40-millimeter Rolex Day-Date in white gold, reference 228239, retail price $51,600. On the right is the 40mm Rolex Day-Date in platinum, reference 228236, retail price $68,800. The disparity extends to the secondary market, where both watches trade at roughly their retail price. In an efficient market, the gold watch would be worth more, since gold is worth far more than platinum. The fact that it’s selling for a significant discount makes it seem a clearly better value.