Apple may buy 746 tons of gold per year for its Apple Watches

“Apple could soon be a major buyer of gold, according to estimates of how much of the precious metal will be required to produce the 18-carat version of the forthcoming Apple Watch,” M Rochan reports for The International Business Times.

“Bullion dealer GoldCore has estimated that each gold edition of the Apple Watch could contain two ounces of gold, suggesting that Apple could use 746 tonnes of gold per year, or one-third of the total annual global mine supply,” Rochan reports. “The figure is based on estimates that Apple has ordered between five and six million units of smartwatches from its manufacturers, CNBC reported.”

GoldCore’s research director Mark O’Byrne said, ‘In the end it will probably come down to the price. Even at the lower-end [selling price] estimate of $4,000, it’s hard to imagine Apple shifting one million units each month.'”

Read more in the full article here.

MacDailyNews Take: Seems rather farfetched to imagine Apple consuming 1/3rd of current world gold production for Apple Watch Edition units, especially if they price that line properly (high), doesn’t it?


      1. And about $30 billion at raw gold price.

        Writer is effectively claiming that Apple will sell 10-20 million Apple Watches made with a Gold case.

        Not reality. Mere journalistic excess.

    1. There are 12 ounces in a Troy pound; the unit in which Gold is measured. Still, it would seem the anal-ist based his prediction on total production, not the fraction that would actually purchase the gold version. 😀

        1. The watch is 18 carat gold not pure gold. So only 1.5 ounces of the 2 ounces is pure gold. That estimate seems really high, must also include the watch band. The innards aren’t gold, just the case. 😀

          1. The gold is not being mixed with copper or other usual alloy material but “low density ceramic” making it MUCH harder to scratch, but at the same time using less gold. How much less is the questions since it is mixed by measured by weight for the 18K, but sold by the volume in the watch. I have yet to see anyone try to calculate out the real amount Apple will use…

        2. And here’s where it gets really crazy. Let’s use the $10,000 per watch that everyone is estimating the price will be. That means Apple will get $90,000,000,000 for those fancy watches alone! That’ll be a pretty good quarter for Apple, eh?

        3. The innards aren’t gold, the back of the case isn’t gold, and according to my reading most gold watches don’t use close to two ounces of gold in the case (and that was before “Apple Gold” with its ceramic particles entered the mix).

          Plus a million units a month is more than most luxury marques are known to sell in a year.

          So a super crock.

            1. Asia’s the wild card. We’re about to find out how many Chinese are now able (and ready) to cough up $4-10,000 for one. There’s still rampant rural poverty and hard work for assembly-line employees, but there’s also a lot of the Western world’s money sloshing around.

              And, say, a million buyers would be well less than one out of a thousand residents of the Middle Kingdom (like 0.08% or so). Plus Japan, Korea, Indonesia, Singapore, etc.

              Apple would only need 0.03% of that area’s population to sell more than half a million – and another half a million in the West and the rest of the world.

              Which I think is not out of the question.

              So I peg your 250K as the floor and somewhere around 1M at the top – with a skew towards Asia that skews even more if sales are high.

  1. In related news, levels of methane may have spiked dramatically since the media began reporting of the car.

    Historically, methane concentrations in the world’s atmosphere have ranged between 300 and 400 nmol/mol with levels probably reaching between 600 to 700 nmol/mol around election time

    Methane levels in the Arctic were measured at 1850 nmol/mol, a level over twice as high as at any time in the 400,000 years prior to the reports of the car.

    The ancient alchemists were looking for a way to change lead into gold, looks like the jouranalists conglomerate have been successful at converting gold into methane.

  2. The banks of the world are going to have a fit if that much gold is wanted. They have been renting the gold for years and have rented out several times the total amount in the world according to a documentary that was released a few years ago.

  3. The stainless steel Apple Watch is going to be the “luxury” model for most buyers. It looks just as good as the gold models. It has sapphire glass and ceramic back, like the gold model. And it has the most choices for bands, including intricately designed metallic bands made of matching stainless steel. Apple won’t put those bands on the gold Apple Watch. And unless there are gold versions of those bands, which are currently not shown on the Apple Watch web pages and will more than double the gold used for one Apple Watch, the stainless steel Apple Watch is the one that will garner the most attention in a crowd.

  4. I can’t remember which mob movie it was, but I remember one of the assassins saying … “If I wanted you dead, you’d be dead already.”

    Similarly, I’m sure Apple has already procured in advanced purchase agreements all of the gold they might need for whatever projections they made. That’s just the way they roll.

  5. 2oz / watch ——-16oz/lb >>>>>>0.125 lbs /watch

    746 lbs/ 6.25^-5= 12,0000,000 watches.

    I higly doubt apple will sell 12 million gold versions in one year !

    More like 100k/year if u ask me …

    100,000 watchs x 6.25^-5= 6.25 tons
    Aprox 0.2% of world annual production of aprox 2100 tons

    Even if they sell 1 million gold watches/year
    That would be
    2% of world annual gold production ( which is huge imho )

      1. Thanx,. Nevertheless that wont make a huge differance

        2oz = 0.16 troy lb per watch
        2679 troy pounds/ tonne
        0.16troy lb/ 2679= 6.22^-5 tonnes / watch gold
        100,000 watches x 6.22^-5=6.22 tonnes >>>> 0.2% of 2100 tonnes
        1000,0000 watches >>>>> 62.2 tonnes. >>>> 2%. Of 2100 tonnes

  6. M Rochan is not worthy of “analyst” in a job title. Too many errors:
    1. 12ounces Troy in a pound
    2. Innards not gold
    3. Back ot gold
    4. Watch case (only) of gold (excluding possibility of gold band)
    5. 25% (6 carat by weight) of less dense ceramic filler to strengthen case
    6. Due to less dense ceramic alloyed with gold, less gold in same volume
    The “analyst” did not do his homework. 😀

  7. 746 Tons would be somewhere in the $20-25 billion range and that is just raw material price …. While no expert but I doubt Apple will sell say $100 billion or more in a year in JUST the GOLD Watch???

    Think this guy carried over a decimal or two that he shouldn’t of!

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