The Apple Watch has caused quite a stir since it was announced last Fall. People had speculated for years what it was that the industry leader in smart-phones was going to do regarding the wearable technology trend, and in November of 2014, Apple finally released their long awaited “Apple Watch.” Coming in 3 different models, ‘Watch,’ ‘Sport,’ and ‘Edition,’ the world went crazy for all things Apple. The top of the line model, the ‘Apple Watch Edition,’ would be made out of 18 karat gold, and contain a variety of features that would also be available on the other models.
Speculation around the Watch
Once it was finally released, Apple maintained their secrecy around the more unique specifications regarding the watches. Much as before the announcement, it has been up to mostly consumers to speculate about what the actual watch will contain. Enter the article ‘How Much Gold Will the Apple Watch Contain’ by Josh Centers. In this article, Centers uses data that Apple has actually released, mainly production numbers, and speculates how much gold the ‘Apple Watch Edition’ will actually use. Apple plans to begin with production of one million units, mostly for sale in the Asian markets. Each watch, Centers predicts, will contain roughly two troy ounces of gold, or between 50 and 75 grams of gold per unit. If the amount of gold that Centers believes to be in the watches is true, and if Apple continues the production numbers stated for the first month of production, Apple will need to purchase 1/3rd of the gold mined in the world for the year.
What It Could Mean for the Price of Your Gold
It is known that gold is an extremely rare metal. Only 746 metric tons are mined every year, whereas there are roughly 19,000 metric tons of silver mined in the same time period. As any high school economics student can tell you, when supply goes down, price for a product will assuredly go up. So what does this have to do with the gold in the Apple Watch? It’s simple: if Apple does indeed take 1/3rd of the year’s supply of gold, the supply of gold in the market will go down by 1/3rd. This is merely speculation, but the price of gold after the release of the Apple Watch in April could increase dramatically, especially if the production of the watch continues to top one million units every month for the next year. Even Centers, the author of the article, admits that these numbers may be a bit off, but he also says “… it’s never safe to underestimate Apple.” They are, of course, the same company that sold over ten million iPhone 6s and 6+ models within three days of their release in September of 2014.
There is always speculation with markets for precious metals. No one is quite sure what they’ll do next. Curious to see how much your gold is worth? Simple! Come into Gold Unlimited and get an estimate on the spot, or click the button below to make an appointment with one of our top jewelry experts. You’ll walk out with a hand full of cash and a smile on your face.
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Sources:
http://tidbits.com/article/15443
http://www.mining.com/apple-buying-a-third-of-worlds-gold-to-meet-demand-for-iwatch-14071/
http://www.investopedia.com/features/industryhandbook/metals.asp
http://www.silverseek.com/article/silver-market-facts-12695