The Price and Setting of Platinum Jewelry

Today at work I did some price checking. Youcharging more than the original estimate unless
might be surprised at what is said here. I pickedyou had been informed that parts are going to
out a ring shank which is about 2.25mm wide atcost much more due to rising platinum prices.
the top and a heavier than usual 6 prong setting.Perhaps the jeweler is sticking to original head
A while back before platinum prices went up socosts and making up the difference in labor, who
much and the "spot price" for platinum was $700knows. In any regard, sight unseen, the price total
the prices were a lot different.Now, today with ais not far off what I quoted. Keep in mind I
spot price of $1187 per ounce. The spot price ispicked a fairly medium heavy shank and a heavier
for pure platinum metal, as traded and bought onthan usual head. I might be comparing apples and
metals markets. This price changes and with itoranges here and that should be kept in mind.
also change the costs of platinum jewelry parts.The trade-in price for your old ring is not that far
At the old $700 price, the 2.25mm shank wouldoff, either. This is true IF you were told you were
run about $450 and at today's price about $$650.getting the "scrap" price and not trading in a
The prong setting was at about $205 and todayusable ring. Scrap rates vary from refiner to
is $306.refiner but according to today's platinum prices,
That comes to a combination of shank andwe would likely offer about $110 for the old
setting of $956! Today, some jewelers realize thesetting as scrap metal.
price is getting so high for platinum that they areSure, we would get more than that form the
not putting the same mark-up on platinum theyrefiner but once overhead including refining costs,
did last year.a profit and the fact the ring might sit around a
There is competition from jewelers who are stillwhile until we had enough metal to send to the
selling( perhaps foolishly) at the old prices andrefiner, the price quoted is not out of line. At first,
higher prices discourage customers. Today, atI thought the price too low. I visited some refiner
where I work we would not mark-up the platinumsites today and double checked.
as much as we did a year ago.If you were to sell you ring directly to the refiner,
The total price for the shank and settingcertainly you would get more the platinum
mentioned would be sold for about $800. This iscontent. The problem is, refiners often require
for the parts and no labor included.minimum amounts of metal to be accepted for
To assemble the ring, size and set the stonerefining and one ring is not enough.
would run about $150. I don't know if your ringThis is the final part of the answer. I will
requires more work than assembly of the headsummarize by saying, the labor seems too high
to the shank, sizing and stone setting. That addedunless more work than assembly, sizing and
work could account for the labor charged. Thensetting is needed. The head seems too low unless
again, if only "putting together" the labor seemsquite light weight. The value offered for scrap (if
high to me.that was the agreement!) is not far off at all.
Perhaps the cost is balanced out with the lowerI know it seems very low compared to new
price for the head. I don't know what is going onmaterials from the supply house. That is a fact of
with the jeweler with whom you are dealing.metal accepted as scrap and not as a usable item
All in all, the platinum prices are not out of line, butof jewelry. The broken prong is not your
the head is too low unless very light weight. Theresponsibility. The jeweler has little excuse for not
labor seems too high. Totals are not that far offinforming you of the much higher finished price
from the price charged you.than estimated or quoted.
Then again, there is not a real excuse for