Talking About The Substance: Ceramic Is The New Gold
Did you know humans have been making ceramics for at least 26,000 years? They’ve done so by subjecting clay and silica to intense heat to fuse and form ceramic materials. Mind you, traditionally, these were not dishes, as you might expect. Rather, they were small, sculpted figures. Only in the 1970s did ceramic enter the world of watches. Omega, IWC, and Rado pioneered the non-metallic material that stands out because of its resistance to scratches and antioxidizing and hypoallergenic properties. But a coincidental observation made me think about the ancient substance that has evolved into a high-tech material. Ceramic is the new gold. Whereas gold watches somewhat follow the price of the precious metal on the market, ceramic pricing is much more fluid.
The watch industry’s ceramic differs greatly from the typical ceramic found in bathroom tiles. Traditional ceramic raw materials consist of clay minerals, like kaolinite, while newer materials include aluminum oxide, aka alumina. The ceramic material used in watches is known for its advanced, high-tech properties and is much more durable than the ceramics typically found in pottery. To achieve a premium, luxury feel, the ceramics in watches are crafted from pure metal compounds.
These days, advanced ceramics are made with silicon carbide and tungsten carbide. These materials are highly prized for their resistance to abrasion, making them ideal for use in applications like wear plates in mining equipment. Advanced ceramics are also widely used in various industries and applications, including medical and electrical devices, electronics, and armor. If you want to know more about the pros and cons of ceramic watches, click here for Henry’s informative article.
Rado Captain Cook High-Tech Ceramic Skeleton ref. R32150162
Ceramic is the new gold — Then and now
Ceramic watches are becoming increasingly common. Many brands offer ceramic watches, including Tudor, Omega, Rado, IWC, Hublot, Blancpain, and plenty more. It all started in the 1970s when Omega presented the Seamaster Cermet after many (costly) years of development. It was made from a proprietary ceramic material made from aluminum oxide and tungsten carbide and was only available through special order. Due to the vast R&D and production costs, the price was about four times that of a Speedmaster. Consequently, it was never a commercial success.
Other important models from the early days of ceramic watches were the 1986 IWC Da Vinci ref. 3755, which was available in either black or white ceramic, and the 1990 Rado Ceramica, the first watch with an all-ceramic case and bracelet. Colored ceramics are a more recent development. Again, IWC and relative newcomers, such as Audemars Piguet and Hublot, have a rainbow of colorful ceramic watches in their collections.
Royal Oak Offshore Selfwinding Chronograph ref. 26238CE.OO.1300CE.01
An exclusive coincidence
The idea for this article was born out of admiration. When I was at Audemars Piguet recently, I got my hands on the impressive Royal Oak Offshore Selfwinding Chronograph ref. 26238CE.OO.1300CE.01 again. This is the full-black, full-ceramic version of the iconic “Beast.” I couldn’t help but ask for the price, although I was well aware it would be too big for my budget. The price of the full-ceramic Beast is €86,600, and that price somehow stuck with me. Many days later, when I was browsing the Audemars Piguet website, I took a closer look at the Royal Oak Offshore Selfwinding Chronograph ref. 26238OR.OO.2000OR.01. This is a version in full pink gold. I noticed the price of €92,800 and thought of the ceramic Beast again. A difference of “just” €6,200 is remarkable — remarkably small.
Then, I thought of looking at the Royal Oak collection, and things got even more remarkable. The 41mm Royal Oak Selfwinding Chronograph ref. 26240CE.OO.1225CE.02 in all-black ceramic costs €78,000, while the 26240OR.OO.1320OR.05, the rose gold version of the same 41mm chronograph, also costs €78,000. At AP, ceramic is worth its weight in gold.
Royal Oak Selfwinding Chronograph ref. 26240CE.OO.1225CE.02 — Image: K2 Luxury SA (via Chrono24)
Price per kilo
The surprising pricing at AP made me look at the cost of the raw material. One kilogram of zirconium dioxide, the fundamental element needed to create a ceramic watch, costs around US$40. That is more than one kilogram of 316L steel, which costs around US$7. FYI, from steel, AP builds its reference 26238ST.OO.2000ST.0, a €46,400 Royal Oak Offshore Selfwinding Chronograph in the style of the 1993 original. When AP wants to make a Royal Oak Offshore in gold, the price of the raw material is much, much higher. Gold prices are on an upward swing, and two days ago, the asking price per one-kilo gold bullion bar was US$94,954.82.
Hublot Big Bang Unico Dark Green Ceramic ref. 441.GX.5210.RX
Production costs
The easy answer to a ceramic watch’s (relatively) high price is production costs. Creating a ceramic watch takes a lot of effort and time. To cut a long story short, the shaping, sintering, and finishing take time as well as specialized machines and tools. But it’s not a novel production process. Yes, innovation is still ongoing, but the fundamentals are long out of the pioneering phase. Just as titanium watches are a bit more expensive than steel watches because they require different tools and are a bit more difficult to give a luxury-looking finish, there’s a price to pay for ceramic timepieces. It’s easy to understand that relatively soft gold is cheaper to finish than ultra-hard ceramic. The production costs have to be passed on somewhere, but at AP, an alchemist/bookkeeping miracle happened: the brand turned ceramic into gold!
Omega Seamaster Diver 300M ref. 210.92.44.20.01.001 with a 43.5mm black ceramic case
Other brands’ pricing
The prices at AP made me look at some of the other brands with a reputation for ceramic watches. Omega will sell you the Seamaster Diver 300M ref. 210.92.44.20.01.001 with a 43.5mm black ceramic case on a rubber strap for €9,900. The difference with a Seamaster Diver 300M ref. 210.62.42.20.01.002 in a 42mm Sedna Gold case on a rubber strap is immense and feels logical. In precious metal, this diver has a price of €32,500.
IWC Pilot’s Watch Chronograph 42 Top Gun Mojave Desert ref. IW389402 in beige ceramic
IWC is another pioneer in ceramic watches, and the black Pilot’s Watch Chronograph 41 Top Gun ref. IW389401 has a price of €9,700. Colored ceramic is a more current development, leading to a price of €12,900 for the Pilot’s Watch Chronograph 41 Top Gun Mojave Desert ref. IW389402. In 5N red gold, however, the Pilot’s Watch Chronograph ref. IW388110 will set you back €25,000.
Hublot Big Bang Unico Yellow Magic
At Hublot, beige is too vanilla, and the Nyon-based brand recently developed several brightly colored ceramic watches. Take the 44mm Hublot Big Bang Unico Yellow Magic ref. 421.CY.471Y.R on a rubber strap, for instance. This exuberant creation costs €30,800. If you want the same watch in King Gold, ref. 421.OX.1180.RX, the price rises to €46,800.
Hublot Big Bang Integrated Black Magic in full-ceramic attire
Weirdly, though, the €26,200 42mm Big Bang Integrated Black Magic ref. 451.CX.1170.CX on a ceramic three-row bracelet costs €4,800 less than the yellow ceramic Big Bang on a rubber strap. I guess nearly five grand is the price you pay for exuberance.
Rado Captain Cook High-Tech Ceramic Diver ref. R32144202
Two Captain Cooks
Ceramic pioneer Rado doesn’t make gold watches. The brand makes many types of ceramic watches from all kinds of “blends.” Rado also makes steel watches. For instance, there’s the retro-styled 42mm Rado Captain Cook Automatic ref. R32154208. You’ll pay €2,950 for this stainless steel watch, which comes in at 164 grams. Then, there’s the retro-futuristic Captain Cook High-Tech Ceramic Diver ref. R32144202 with its 43mm matte plasma high-tech ceramic case. This watch weighs 159 grams and costs €4,100. This is a sharp price considering your knowledge of prices per kilo and the intensive production process. It also further fuels the confusion around the prices of ceramic watches. There seems to be little correlation between the price of the raw material and the end product — not that that’s unusual when it comes to luxury goods.
Rado Captain Cook High-Tech Ceramic Skeleton ref. R32192152
The psychology of pricing
In its most simple form, price reflects value. In the realm of luxury watches, though, it reflects a lot more. The price is a reflection of the value a brand offers to its customers. It’s not the ceramic material or the gold that matters most; rather, it’s the desirability a brand cultivates. It can do so through exceptional storytelling and offering a phenomenal customer experience.
The black ceramic Audemars Piguet Royal Oak Offshore Selfwinding Chronograph ref. 26238CE.OO.1300CE.01 is no “Jumbo,” but it does have people on a waitlist
One of the fundamentals of luxury is that perceived value outweighs actual value. Luxury is about carefully constructing a perception of value (far) beyond the product itself, although high-end luxury watches are carefully crafted pieces. At AP, the powers that be fully understand that and apply it in a way that will sometimes make you scratch your head. In luxury watches, pricing is still tied to cost but sometimes very loosely. The price is mainly based on the perceived value. And that’s a value the brand can create, no matter the watch’s material.
What are your thoughts on the seemingly random pricing of ceramic watches? Please let me know in the comments.
