When Leonid states that the labour cost of reproducing a Faberge'
Egg would exceed the purchase price of the original, is he
suggesting that the Rothschild Egg could not be reproduced for it's
auction price of 16 million dollars, or does he mean for its
original price when purchased in 1902.
$16 million is a lot of money for sure. But it is interesting to
examine what would it cost to produce work on Faberge level.
Let’s take a riviere necklace composed of 60 one carat diamonds. I am
using riviere because it technically simple. We have to manufacture
60 settings with built in connectors and a clasp. Each setting would
take 10 hours of labour plus 100 hours for the clasp. Another 40 to
50 hours to assemble and to make sure that everything works smoothly.
Total 750 hours. Jeweler working at this level should be paid no less
than $50 per hours, add to this other expenses associated with
employment and we have close to $80 per hour or the total labour bill
would be approaching $60 thousand.
To manufacture each setting we would have to start with strip of
platinum with dimensions of 21 mm X 9 mm X 1 mm which weigh close to
6 grams or 1/5 of an ounce. So we would need 5 ounces of platinum
sheet plus some wire and solder. I will not be far of the mark
estimating $10 thousand in material.
Diamonds, even is not the best quality, but still have to match and
be of decent colour and clarity, I would estimate another $200
thousand. The expenses so far approaching $270 thousand. Add to it
rent, taxes, salaries of support staff, administrative, insurance,
some profit and it is easy to see that just to stay in business the
necklace cannot be sold for less that $700 thousands.
With some patience, a similar necklace can be purchased at auction
for $70 to $80 thousand or 10 cents on the dollar it cost to make.
Without been tied up to a specific item, I think that in todays cost
environment it makes more sense to buy things at auction than trying
to make them.
Don’t get me wrong. There is nothing I would like more than to
practice the art of Goldsmithing on the highest level possible, but
we are running into economic headwinds which are very strong.
I am still taking orders for Coronets, but I have to do them myself.
It is almost impossible to find a jeweler who knows how to use
jeweler’s saw. I do not know how things are in England, in USA it is
really tough.
Leonid Surpin.