Episode Transcript
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(00:00):
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captivating journey through the world of opulence.
Now let's explore the legacy of luxury with Salomon Brothers
Jewelers. Welcome to Legacy of Luxury
Jared my man. We have made it to episode 2.
How do you feel? We're back baby episode 2.
You can't get to 2 without 1, so.
Most people don't even get to 2.So I'm thrilled that we're here.
(01:07):
And honestly, this is an episodethat I think Jared and I've been
talking for a while but we plan to do later.
This isn't one we should be doing on #2 but the market
forces have created something that we have to talk about.
And based on what I've seen, I think we might be the first
Jewelers to be having this conversation.
So let let let's just hit it. We're talking platinum as a
(01:28):
material, as a piece of jewelry.There's a lot at play here.
But Jared, just briefly talk about like how we've got into
this situation and it's relatively about what gold
prices are, but talk about how we've gotten here.
And then we could take some time, talk a little bit about
the history of platinum and talka little bit about white gold.
But first talk how we've gotten here.
So, Nick, Platinum, right? If I told you that cars and
(01:52):
Platinum had a lot to do with each other and you probably
would look at me like I'm crazy.I would say I've heard of
platinum models of cars which isusually the highest, so that
gives you a little pre hint of what's going to come.
Fair enough. Platinum.
What an interesting metal, right?
So starting off for us in the jewelry space, it's such a great
metal for us to work with, highly malleable.
It's a bend. Don't break metal.
(02:15):
So what's the advantage there? Crafting it, maneuvering it?
And gold is similarly malleable,but gold will break.
So platinum's got a little bit more density I would assume in
the the makeup of the the mineral.
Correct in the the fact that it's so pure as well, right.
Most rings are going to be 95% platinum, 5% irradium.
So you know no one. 'S going to die.
Irradium sounds like one of those scary things, right?
(02:35):
We're not, we're not. We're not blowing up here
because in the the Saudis comingafter us and trying to implant
it in us. We are safe here, just making.
Sure. But platinum is such a cool
metal, and because of that purity, you know, it keeps it.
It's a naturally white metal. You don't need the rhodium
plating like you do for gold. And you know, the actual idea of
(02:56):
not breaking, right? It's it's what makes it last
forever. Something crazy when you see
platinum and you know, like my ring right here and I see all
these dents and scratches and whatnot in platinum.
It's not really actually losing any metal.
It's just dispersing throughout the ring.
So I'm always giving the examplein the store of sand.
(03:16):
I think it's the easiest, right?You're on the beach.
Draw your finger down a line of sand.
Did you lose any sand? Just displaced.
It just displaced. The volume and the it's still
the. Same.
Smarter than you look sometimes.Unbelievable man.
Sometimes. It's early.
You're on top of it early this morning.
So that's the coolest part aboutPlatinums and we'll talk a
little bit about and that's as a.
Fundamental that's as it's metalcomposition, right?
(03:37):
Take jewelry out of it. If it was making anything a
statue anything it's doesn't matter as a material itself.
We're talking about chemical composition.
So one of the things as it's as it's become popular in jewelry.
So some history here I have. It was used early in pre
Columbian culture. So they had found it, they'd
known it. They probably used it more as a
wow, look what this can do than the value proposition.
(03:57):
Look, there's something about gold because of that shine that
looks different, right? It looks like something you
haven't seen. There's so many metals that look
like platinum because most metals, it's got the metallic
thing, but it looks like it was rediscovered in Europe and
around the 1700s, but it was really the 19th and 20th century
where it came into favor. And I think it's an important
point to distinguish here. Let's talk a little bit about
(04:18):
the difference between the market forces of something like
platinum and something like gold.
This is going back to the gold standard.
This is going back to why gold has gotten to this point.
So talk a little bit again, and then I want to get to the
jewelry part, but I really want to set the stage here.
Talk about how gold fluctuates so much and how we've gotten to
the point where in theory, thesetwo materials, which couldn't
(04:38):
have been further from price at some points, are now so close
together in price, presenting a unique opportunity.
Yeah. And again, to be clear for our
listeners, right, close to pricein jewelry and we'll explain
that, but nowhere close to priceper oz, right?
I mean, you're at 980, you know,per oz in platinum and you're at
$3200.00 an ounce in gold. And I think your question is
really interesting and and I brought up at the beginning of
(04:59):
the show there about cars and we'll get into that in two
seconds. But the fluctuation of gold,
right? Is market conditions, right?
This has been a market standard has been an exchange and then
they exchange for since again, pre Columbian, the Mayans, the
Incans, these that that that's why they were they were here.
They came to the. World searching for right and so
it's a it's a value proposition for a lot of people right so
(05:19):
like when the dollar gets weakerright and interest rates are
lower the gold typically goes upwhen interest rates are higher,
gold typically goes down but yetin this force that we're in
right now you know our generation things that interest
rates are like crazy right now we're like Oh my God, five and a
half 6% interest rates well, go talk to our parents when they
(05:41):
bought their first house and it was 17% now.
Now I'm going to throw out a curveball here because this is
something that I read this morning completely randomly.
The, when we, the Nixon took us off of the gold standard in the
70s was what set the stage for that hyperinflation and the
interest rates that came along to the.
So even without on purpose, goldis what has driven a lot of
(06:02):
these changes. And because you're talking about
it because the same time you canget savings bonds.
So I remember when I came of age, I had all this money
because they were getting doubling by the time you were 18
because my interest was. But at the same time, when we
left the gold standard, we left a dollar for dollar equivalency
of our currency versus gold to the point where it's the Wild
West and now you have speculators, now you have forex
(06:22):
exchanges. So volatility, it's been known
as a non volatile material in the short term because it
doesn't fluctuate as quickly as stocks do.
But in the long run, if you looked at the chart, it looks
volatile. It is, but it's also, I would
say it feels very secure. So that's why you would never.
Lose immense value and it would be gradual.
It wouldn't be $3300 to 10 overnight, which could happen
(06:45):
in. Other places, and this is not a
political show, but there is some volatility in the world
right now. We won't get into all of that,
but that's probably why I would say, in my speculation at least,
why gold has gone the way it's. Gone Ray Dalio said he thinks
it'll be 10 grand by the next 1520 years.
And Dalio is as smart as they come as a person.
(07:06):
And it's predicted a lot of things.
So I don't know what that means,but I will say from multiple
sources that I've heard the chances of it in our lifetime
going back down to some of thoselows are almost impossible.
Yeah, I totally agree with that.You know, getting back to
platinum, if I told you that theelectric vehicle movement had a
huge effect on platinum, you'd be like, well, what is going on
(07:26):
here? But the Cadillac converter used
in our catalytic catalytic. Cadillac's a brand catalytic is.
No free ads on this though, Nick.
Brought to you by catalytic. Is using platinum now.
It's substituted with Palladium.The EVs don't even use it.
Palladium itself is a unique rare rare earth metal that is
hard to find and incredibly valuable.
I've seen Palladium watches and I'm like what?
(07:48):
Palladium was a but I went to anAcapulco bring break when I was
19 years old. Shot up for Palladium was that
place was awesome. Don't go to Acapulco anymore
though. So, you know, but it's
interesting 'cause we don't use nearly as much Palladium as we
do platinum and jewelry, so. But it's even harder to find
Palladium. So one of the things I
understand as as where as gold is, gold pops up a lot.
There's a lot of gold. There's a lot of gold that was
(08:10):
people, you know, with their metal detectors on the beach,
they find gold. Platinum is rare and Palladium
is even rare. But that being said, the demand
for gold was so high that that'swhy we find so much of it.
There could be more platinum, more Palladium.
And if market forces dictate it,we'll probably look harder.
But for the longest time, we've been looking for gold.
Yeah, So a lot of it's coming out of South Africa on the
platinum side, yes, If you wanted to go mine more, you can
(08:31):
find plenty. There's huge reserves of
platinum right now and plenty availability.
It's really been interesting to see that trend to EV in the car
industry have an effect on platinum and Palladium and
that's had a huge effect on the price and why it's not over
$1000 anymore. You know, I think, you know,
check me on the listeners, but 2020-2021 you're at $1300.00 an
(08:55):
ounce. Gold is around there too.
Platinum being 95%, fourteen karat being 58 1/2 percent.
Like all those factors playing into it where when you came into
the store, a platinum ring was double the price.
And I know we'll get into that in a minute, but it's just
really interesting that, you know, the market is making gold
go up and yet platinum is falling a totally different
(09:17):
trend. It has nothing to do with
certainty or uncertainty in America or in the Middle East,
or anyway. Market forces outside of
anyone's control, if you think you're going to time it, it's
the same thing that anyone says in real estate or stock market.
You're not going to be able to time it.
And if you do, you know Mr. Big Short who got it right in 2007,
he's been wrong with every prediction since then.
So you're going to be lucky morethan you are smart.
So all right, I think that sets the tone.
(09:39):
So I'm going to preface this next part of the conversation
with we are not telling anybody to go buy platinum over gold.
In fact, what I will say is whatI've learned from the watch game
is don't buy something because someone else told you.
Buy something because it is yourpreference and you like it.
If you like the look of gold, ofwhite gold, of pink gold like
that sentimental value is going to be way more important than
any of this. These conversations, what we're
(10:00):
trying to say is a unique opportunity has presented itself
for a metal to which was thoughtas as being more prominent and
more expensive has presented itself.
So talk a little bit about now about the jewelry game, talk
about the store, talk about how these pricing models have caught
each other and some of the advantages that you actually do
have with a platinum ring over agold.
Ring. Absolutely.
So let's actually set the stage for our listeners because we get
(10:23):
the question a lot. Nick, you were one of them when
you were shopping for Mary Ellen.
And, you know, you walk in and you say she wants, I don't know,
silver, yeah. Or white or I don't know why she
just doesn't want it to be yellow, right?
We, we get that a lot, right. So that's a preference actually
yellow gold hot as can be right now, I will say.
That's cyclical. It was out of paper for.
(10:43):
A while it was, it was really when you have the white gold
versus platinum conversation, that's what I want to talk about
here today because that I will tell you, you should buy
platinum over white gold, right?You should not buy platinum over
yellow gold just because it's platinum versus the color of
yellow. If you like yellow and that's
your preference, it's exactly what you should get.
But you're wearing this. We're selling something that
(11:04):
you're wearing for a really, really long time, be it
bracelets, necklaces, of course,engagement or in your wedding
bands. And so you need to buy what you
prefer. Just to set the stage here for
people that don't know, there isno such thing as white gold.
It doesn't exist. Nothing comes out of the ground
in gold that is white looking. It is yellow.
Put in the mixture we're going to mix in.
(11:25):
Sometimes we'll actually mix in Palladium.
It's actually the best mixture to make white gold so that them
actually comes out a little morewhite out of casting.
And then just to make sure it's 100% white, we're going to use
that rhodium plating on the ringto make it white.
With platinum, we don't have to do any of that.
So you're going to get a naturally light metal, you're
(11:46):
going to get a more pure metal. For our listeners that don't
know, 14 karat gold is 58 1/2% gold.
The rest is just mixtures, you know, almost a 6040 mix there.
But to be fair, gold is so malleable and so soft that if
you're talking 24 karat full gold, the chances of it lasting
and not being touched you you couldn't wear it and you
couldn't be couldn't be the day-to-day wearer.
(12:06):
So there's a reason for that also. 100% So that's why you're,
you're using those mixtures and those forces in there to try and
make it stronger. That's why you hear a lot of
nickel being used and things like that.
Again, we want to make sure thatwe're telling our listeners the
right things. And so yellow gold is the
natural color and that's kind ofthe benefit of buying platinum
is the same benefit of buying yellow gold.
(12:28):
It will never change from yellowto anything else.
It's naturally yellow. Platinum is naturally white.
It's never going to change from that.
All things dull over time, right?
And then you Polish it up and shine I.
Have to imagine that because it is such a denser more strong
metal that the IT could take a cleaning better too.
Something like oil that can't take that rub rushing if you
really want to clean off that bottom.
(12:49):
And you can make that thing sparkle again much easier with
much less solvent, since I assume.
But that's such a great point. That's such a great point
because when you're polishing a ring you can over Polish seen
it. Right.
By axle, it's, you know, a lot easier to thin it out, Yeah,
versus the platinum. And that's that point because
you can actually, if you're using too rough of a paper or a
thing, you can bristle it off. As opposed to the platinum where
(13:10):
it's just rubbing it and just sharing the wounds.
In theory, it's sharing the wounds.
Yeah. And it makes a ton of sense.
And again, this is, I like doingthe show because I can come in
with the ignorance. Like, I don't know what I'm
talking about. But realistically,
scientifically, this makes sense.
We're not speaking Chinese. These aren't magical forces.
You know, it probably was part of alchemy at some point.
But like, these are these are things where we can just be an
(13:31):
honest fact. So, so talk about the the
showroom, talk about how much jewelry they're making in
platinum. Talk about when you look the
options between gold, white gold, platinum, talk about some
of those things. Because I think what I really
want to present is the opportunity for people shopping
now, how they can go out and usesome of these tools to their
advantage when they're shopping.For sure.
And listen, we want to put it infront of people that platinum is
(13:52):
such an opportunity right now, but it's not an opportunity if
it's not in front of you. So we are loading up more on the
inventory. The second-half of this year is
going to be extremely platinum heavy.
Things that I would never have thought about making in
platinum, a tennis bracelet, a tennis necklace that, you know,
we used to do that like, you know, two or three pieces that
were like super special, super sparkly, super nice.
(14:14):
And it was like only for certainpeople that wanted to come in
could really appreciate the platinum because it was just so
much more. Expensive if someone's asking
for it, but. Now it's right there.
So it's time for everybody to feel how special platinum really
is and to enjoy a metal that is so, so pure.
And they don't need to go with white gold.
So we're going to be bringing that in the showroom.
(14:36):
There's going to be a lot of options from engagement rings
and wedding bands, necklaces, bracelets across the board.
We need to have those options for people so they can at least,
you know, see make the choice of.
Themselves right and then again,I think that that's what's so
wonderful about the industry thetactile feel of it.
But it's also why I'm going to reiterate this like don't buy
online the more expensive of this come into store talk to
(14:56):
people feel it. I'm not saying if you don't want
to buy a nice little bracelet, but if it's talking diamonds and
gold versus platinum come in store.
These guys specialize will take care of you.
You just have to have that experience because it is a
choice that you're going to makebut you can't make that choice
without seeing what how it goes with what your clothing style
is. So come in store.
The other thing that I've heard is that to hammer home the point
about platinum, because you knowwhen you're a musician, no one
(15:19):
celebrates a gold record. You celebrate that platinum
record that we are actually going to start a boy band and we
are going to make an attempt to make a platinum record and we're
going to actually put that boy band Jingle in our commercials
forward. So what do you think about that,
Mister Solomon? Well, listen, everybody wants to
go platinum, yeah. Nobody wants to hear a sing, but
everybody wants to go platinum. Yeah, I don't even want to hear
me sing, so I won't be listeningto this podcast.
(15:42):
If we start singing. We will not, but will not.
No, it's it's really exciting toget people to understand that,
you know, we're just trying to elevate it, you know, that much
more. And we'll have some fun with
some records. There's probably been some
records that don't deserve to goto Platinum, but they are You
always deserve. To go platinum and I and I
pulled a couple just for the goof just for example so AI
(16:02):
pulled 2 terrible ones so I'm going to throw these out the
window. It said these are the four that
I'd said. It said Adele, Frank Ocean,
Janelle Monáe, and Tyler, The Creator.
And which two went platinum, Right?
Which is so obvious. I love Janelle Monáe.
Shout out to Hopper, her drummer, because I know him
really well, but she didn't go platinum.
Tyler, The Creator. I don't even know what a Tyler,
The Creator is. So he definitely didn't go
(16:22):
platinum. Girl Adele.
No. Oh my.
God, Adele should have went platinum 400 times over.
I'm not sure I like her as much.Thin.
And it's not a criticism or bodycomposition.
I just feel like that big opera singer belting out things has
more passion. It's the presence and the
passion. So we're gonna probably get in
trouble for saying that one. But you know, we can be honest
when we want. And Frank Ocean, Frank Ocean's
got his moves. Frank Ocean should be platinums.
And I didn't help us here. But the point is that we
(16:44):
celebrate platinum records. We've been set up since the
beginning of time for that to besaid.
So gold records you sell 100,000if we wanted to and we advertise
it the right way are terrible boy, but couldn't do 100,000
copies. We'd have to buy a way to do it.
But it's possible. Platinum is really, really hard,
which is just gives an idea of how sentimental and important of
a metal it is and which is what we really trying to hold mirror.
So Jaron, just some closing remarks.
(17:06):
Talk about the what we have. Talk about what pieces work best
with it. You know, maybe earrings aren't
the right thing because they're small.
Talk a little bit about give a little buyer's guide to somebody
who's out buying platinum and what to ask for.
Even if you're not with us, you're probably listening all
over the country, all twelve of our listeners.
So some advice to everybody, a buyer's guide, if you will,
about platinum, even if they're not shopping with us, so they
(17:26):
can go make educated decisions and speak to people.
And some of these, some of thesejewelry stores across the
country who are being a little more malicious with pricing and
keeping the prices up because they're either paying less
attention to market forces or they're trying to make a buck.
Give some advice because I thinkthis is going to be the most
important segment, most realistic to most people.
Absolutely. So my number one advice would
be, no matter where you are and what you're doing in jewelry and
(17:48):
shopping, when someone presents something to you at 14 karat,
ask them about platinum, right? I mean, that's the first thing.
A lot of stores are not going tokeep it in stock and therefore
they're going to push gold on you, white gold on you, so.
Because they have the special order it not because of it
probably margins, maybe because it's they have the special
order, it's just more of a hassle.
Exactly. A lot of people take the road
(18:09):
less travelled, and that's especially in sales, you know,
that's not what we do. But for those out there just
buying wherever you're buying your jewelry, you know, ask the
store for platinum, get it in platinum.
And one of the things that we haven't mentioned, I struggle
with this word, which is probably why I haven't said it,
but hypoallergenic is that, yeah, that's it, I say, right.
So that's a key factor here. You know, my wife Ally, after
(18:30):
our kids for whatever reason develop of like this weird
irritation in her ear for earrings.
So now all of her posts and her backs and everything are
platinum. Those used to be crazy
expensive. Yeah, I was going to say an
irritation for the more expensive metal.
Shocking how it works. No one gets the irritation to go
downgrade. They always get the irritation
to go up. Of course.
Crazy how that works. Baby girl, you got silver now.
(18:52):
Here you go. But it it really is so cool that
you know there's no allergy attached to it.
If someone has a nickel allergy or anything like that, platinum
is going to just take care of that.
And why not just start that way?That's.
What it is. So with gold, it could be a
mixture of a bunch of things. Like you said, you don't know,
probably not usually Palladium, right?
If you're doing 14 karat, it's probably nickel.
It's probably some of those minerals and I don't want to say
they're throwaway middles. Nickel is going to be more
(19:13):
important than any material withelectric vehicles and batteries,
correct? But some of those?
Jewelry less important, less less expensive, less sought
after materials. That's exactly right.
So when you're shopping out there, you know, and when you're
shopping for an engagement ring or wedding band, and I'm talking
to you guys now, actually on thewedding band side, buy a
platinum wedding band. Do not buy a white gold wedding
band right now. There is absolutely no reason no
(19:35):
guy wants maintenance on his ring.
I know I don't. And with a platinum ring, he has
no maintenance. It for sure turn color on you
for. Sure, but it still has the
shine. So I bought a tungsten carbide
because I just dude, you could throw this thing through a
through a meat grater and it's not it's coming out the same
way, but it just doesn't shine. It's just a dull.
So platinum has a lot of those benefits, but it has still has
the shine and the shimmer, whichis it was important.
(19:57):
And, you know, that's a really good point you bring up about,
like, beating up the ring. It's really a misnomer, right?
Like, so a platinum ring, you can beat the crap out of it.
Yeah. I mean, it just it just enjoy
and wear because it's so valuable that you can come in
here, put it back to the circle again, bend it back, Polish it
up. And I think that's the most
important thing for dude, right?Like I bought tungsten carbide.
I didn't know any of this stuff when I was doing the the
(20:18):
platinum prices were probably different, but they said, I
said, look, this, this, this means nothing for me other than
I want to get it blessed and have that sentimental value.
They go tungsten carbide withoutquestion.
It's like $100 ring. It'll last forever.
It serves a purpose. But if had I known that platinum
was there and that it had the same shine that it would keep
that way, I probably would have went platinum.
Yeah. And not to say that you were bad
(20:39):
to buy that ring. Yeah, but you were because from
a sentimental purpose. And just to be clear on this,
right, you can't size that ring.So if you ever get fat, yes,
you're in great. Shape.
But look, the good news is that it was also a precautionary
mechanism so I don't get fat. So the ring actually serves
double purpose. It gives.
You motivated every morning. There it is.
But it's true. I'm very sentimental to my ring
(21:00):
as well. And you know, with platinum and
and with gold, of course, in these precious metals, you can
cut the ring and size the ring and have it forever.
But again, platinum is that passed down type of metal.
Yeah. Well, you sold me, so that's the
next thing on the list of thingsI got to buy.
I got to get a platinum ring, sothat helps.
Sorry. That's good.
News, but that's that's for the guys out there.
But yeah, when you're shopping for these things, my my biggest
(21:21):
key take away today would be white gold.
It's not naturally white. It is rhodium plated.
And that's why we're doing this episode.
That's why you should do it. Like everyone's like, well, why
should I just buy platinum? There's got to be a reason.
And if your preference is yellowgold, then that is what you get
and that is what you should stick with.
So and and. Look, one of the things I really
love about what I'm finding about this industry is like,
(21:43):
yes, there are consumer trends that's so important, but like 18
karat versus 14 karat, like these are percentages, these are
known things. This is science as to why the
minerals are here. And usually the things that last
the longest are the things that are naturally of the most value.
So the fact that platinum has the malleability, but also the
shine, the shimmer, makes me think that over time, especially
(22:05):
with gold being elevated the wayit is, will only get more
popular and there will be more resources put into finding it.
So, you know, I don't want to say we're breaking new ground
here, but you know, I haven't heard somebody having this
conversation and I think it's a really important one.
So we will leave it at that. Check us out at the Salomon
brothers.com. We have all the old episodes.
Check us out on YouTube short form content.
We're coming at you with a lot of stuff and please shoot us a
(22:27):
note. Let us know if there's episodes
that you want to hear. You've been listening to Legacy
of Luxury and we will catch you next time.
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residents use Code Petfest California California prices
higher limited time only price of participation Mayberry fees
and restrictions may apply. See participating source for
details.