Loss of precious metal platings in the kit market???

[jrista]

Well...for the last couple of weeks here, I've been inventorying all the materials I have, so I can track each purchase and link them to manufactures (and products). I haven't bought pen kits in a while...stocked up, and have kind of had most of the kits I've needed for the most part, save repeat needs for Sierras, Barons and a couple others.

Something I've discovered along the way here, is a near-complete loss of precious metal platings in the kit market. Back...heck, evne as little as about a year ago, I was able to find kits with Rhodium, for example. Back in 2021, there were many many more plating options.

I have been truly sad to find that today....there are barely any precious metal plating options left!! Heck, there are hardly any plating options left, really. I'm a big fan of precious metals, I think they add an element of luxury and appeal to pens that you can't get any other way. However, today, about the only actual precious metal you can get, is gold...and even the quality of that has diminished!!

In 2021, all of the following were available on the market, in one combination or another:

• 24kt Gold (often noted with epoxy coating for durability)
• 22kt Gold
• 14kt Gold
• 10kt Gold
• Ti-Gold
• Rose Gold (wasn't common, but it was an option for some kits)
• Upgrade Gold (Berea...honestly have no idea what this is!)
• Platinum
• Rhodium
• Titanium
• Black Titanium
• Silver
• Sterling Silver
• Copper (plus Antique versions!)
• Bronze (plus Antique versions!)
• Brass (plus Antique versions!)
• Pewter (plus Antique versions!)
• Gunmetal
• Chrome
• Hardite (Berea, absolutely no clue, seems to have REPLACED actual gold???)

That's quite a list! And I don't think its exhaustive. Some of these were more expensive, naturally...some kits were $40 or more. But, for a pair of truly precious metals, well, that's somewhat to be expected. Things seem to have really changed today, though. The plating list that I've been able to find just with casual perusal, is generally the following:

• 24kt Gold
• TiGold
• Upgrade Gold (Berea...)
• Hardite (Berea...???)
• Gunmetal
• Chrome
• Copper (rare)
• Antique only:
  • Brass
  • Pewter

Now, maybe there are still some other platings out there and I just haven't found them, I didn't make an exhaustive search. In 2021, it was EASY to find precious metal platings. Today, even the same exact product codes in some cases (i.e. notably PSI), have actually been swapped with lesser versions of what you could buy in 2021. Today, instead of say Black Ti/Rhodium, you get Gunmetal/Chrome. Instead of 22kt Gold/Rhodium, you now have either Upg Gold/Chrome, or maybe TiGold/Chrome, or worse, Hardite/Chrome (I've never known what hardite is...decided long ago I would never use it, as its a secret formula, and it doesn't appear to be a precious metal of any kind.) Etc.

I'm really saddened to find this...it seems all the "precious" has been utterly sapped from the kit market. There basically is no precious metal anymore except Gold, which is most often in the form of TiGold, or maybe 24kt or Upgrade gold. I really loved the 22kt Gold option in the past, it has a soft color that works well with many kits. I like TiGold, but...it does tend to be a very yellow gold, which I think sometimes limits the combination options that 22kt Gold had. There were even 10kt gold kits. I still have some of these...but, not as many as I wish I had.

I'm curious when this happened, and why? I remember some manufacturers saying they were going to stop using Rhodium. Well, at the time it was something like $35,000 an ounce!! So, that actually made sense. But...when and why did all other precious metals except Gold get expunged from the kit market? I never heard any manufacturers talking about that...and I'm baffled as to why they did it.

I feel it was a bad move, as well...because in all honesty, this has given me a HUGE push towards thinking I may switch entirely to kitless pen crafting once I've exhausted my supply of kits here. MOST of my kits that I bought in the past, at least those above a Sierra or Baron level, had precious metals. I have some Gunmetal/Chrome kits, but if I had the option, I usually opted for Black Ti/Rhodium over Gunmetal/Chrome whenever I could. I have kits with real silver or sterling silver as well, even a few types with Platinum (Black Ti/Plat is a good combination!)

The near total expungement of precious metals from the kit market is extremely dismaying. It seemed to happen silently and under the table, which is weird, frustrating. The infuriating thing about it all, is that all the kits cost the same, or more, than they did with precious metals. I mean, that's a huge hike in kit price, for far less valuable and lower quality platings! I know there has been inflation, but, this seems a little egregious. A Majestic that goes for around $57, is still the same price, even though you simply cannot get them in many of the precious metal platings they used to have. Heck, I've also found that many kits that were always in higher grade precious platings are just gone entirely...

What a strange and curious transformation of the market. Depressing to a degree. I wasn't a fan of Hardite when it arrived on the scene...it looks like fools gold, with that sickly-green appearance. Now it appears that heralded the elimination of almost all real precious platings. So very, very sad....

/rant

 

[jrista]

On a more exhaustive search...there do appear to be some reserves of these older kits with better platings. Some of the more popular kits, like Majestics, can be found with 22kt/Platinum or Rhodium. I eventually came across some stores I'd never used before, which seem to have some reserves of pen kits with these nicer platings. Also found that stores outside the us also seem to be a bit of a reserve...some stores in the euro zone and one in south africa have some of the kits I'm interested in with better platings.

So, seems there is a reserve out there. I'm guessing unsold stock, unless for some reason its just that most american stores have simply decided to stop selling kits with higher grade platings?

 

[jttheclockman]

Where have you been Jon. You know the reasons. The PANDEMIC started it and then add the war with Russia. Take a look at where all those so called precious metals come from overseas. The metals when they are imported are so rediculous high to use and make for pen kits. Who is going to buy them? You? We complain on this site when a kit is so high. See it so many times here. That is why highend kits are not shown here much. The $10 to $15 kit is the norm here. Do a study and you will see. When dealing with the public who is going to buy that highend kit because of the prices you are forced to apply to it. You can use all the formulas you want but the end is they are figured just like a slimline for pricing.. The kits that were in stock with older pricing is being eaten up so now the prices rise. yes some metals have been changed to try to combat the loss or inability to get the old metals as easily. My thoughts on this question if it was a question.

 

[jrista]

Where have you been Jon. You know the reasons. The PANDEMIC started it and then add the war with Russia. Take a look at where all those so called precious metals come from overseas. The metals when they are imported are so rediculous high to use and make for pen kits. Who is going to buy them? You? We complain on this site when a kit is so high. See it so many times here. That is why highend kits are not shown here much. The $10 to $15 kit is the norm here. Do a study and you will see. When dealing with the public who is going to buy that highend kit because of the prices you are forced to apply to it. You can use all the formulas you want but the end is they are figured just like a slimline for pricing.. The kits that were in stock with older pricing is being eaten up so now the prices rise. yes some metals have been changed to try to combat the loss or inability to get the old metals as easily. My thoughts on this question if it was a question.

It was partly a question...

Do we really have no domestic mining anymore? I did look up sourcing, and I was actually surprised to find a lot of it comes from South America and Africa. I would have figured China, and certainly some does come from there. Russia is apparently a big source for the platinum-group metals. Didn't expect South America and Africa. Gold is still fairly plentiful in North America, though, it seems, so I guess that's why we still have gold plated kits.

The thing that really gets me, though is if you DO look at price histories...the metals aren't high right now, and haven't been for a year or so. Rhodium peaked early '21, near $35,000/oz. Right now its $4400/oz. Certainly not cheap, more than gold for sure, but a FAR cry from the peaks when kit manufacturers were bleeding from the price. Platinum is around $900/oz. Palladium is about $1000/oz.

Prices all seemed to plummet since the spring or summer of 2021, and particularly since the beginning of 2023. Hence why I am confused. I guess, is it really that its not so much a price problem, as an availability problem? Thing is, if there was an availability problem, you would expect the prices to rise as a result...scarcity, right? Basic supply and demand.

Dunno, still confused at the whole situation. Rhodium made sense...$35k/oz is nuts and it isn't surprising that caused a reaction. Why all the other metals, though?

 

[jttheclockman]

Again not to dumb this down but think about what you are asking. You are asking the pen vendors to change manufacturing every time there is a availability of materials. They made the switch and maybe took some time to come to market because of inventory status. but to go back to what they once did would be a huge move. I am sure the process of using different metals is a big deal. Also remember most of these kits come from Tawain or China and what is their availabilty to get the materials. It is not us that is making them. Now of course you have the ever stainless steel kits that we make here that I am sure should be a stable price point. It is a part of pen making we have to endure.

 

[wood-of-1kind]

Jon, thank you for starting and providing input to the subject matter. You have eloquently described the seeming disappearance of a lot of precious metal pen kits. As a result of overly fueled rising pen kit costs & fewer plating selections, I have simply chosen to move away from pen making. Too much emphasis has been placed on so called Pandemic price hikes, methinks it's more like GREED. Perhaps the pen manufacturers/distributors may have killed their golden (pun intended) pen goose. Time will tell.

 

[jttheclockman]

Jon, thank you for starting and providing input to the subject matter. You have eloquently described the seeming disappearance of a lot of precious metal pen kits. As a result of overly fueled rising pen kit costs & fewer plating selections, I have simply chosen to move away from pen making. Too much emphasis has been placed on so called Pandemic price hikes, methinks it's more like GREED. Perhaps the pen manufacturers/distributors may have killed their golden (pun intended) pen goose. Time will tell.

Absolutely it was greed. You do not see prices coming down any. This applies to all things effected by supply chain shortages. Why, it is because they can get away with it. there is no and have been no regulations on price charging. It is called monopolys. Moving away from pen making is pretty drastic. Might as well as move away from eating too then. Pen making is not going away. Unless the hobby dies out. There are more people making blanks today than there ever was. Pen kit designs have grown tremendously over the years. Platings years ago were not very good either and that was way before any shortages. what he is talking about is more highend platings. The cheaper platings are still around and wear just as fast as ever.

 

[montmill]

I believe it's called, "greedflation."

 

[egnald]

When it comes to Rhodium, that mostly dried up in 2022 when the existing stock was exhausted. Cost was definitely the issue. Rhodium prices along with most of the platinum family of metals went insane in 2021. Rhodium for example went from $5,000 / ounce in 2019 to a peak of $27,000 / ounce in Q1-2021. For the next few years it came down a little and settled in the $15,000 range. Recently it has dropped back to the $5,000 area so perhaps it might start showing up again in pen kits?

As someone already indicated, the reason was from pandemic issues in South Africa along with power outages in the mines, an increased demand from auto makers, and even the spike in push for zero-emission alternative energy like hydrogen fuel cells that rely on platinum in their proton exchange membranes. Since 2020 these have all come back to the pre-pandemic levels.

It certainly made me cherish the Rhodium plated kits I have in my stash.

Dave

 

[jrista]

I believe it's called, "greedflation."

Yeah, that's undoubtedly a key factor here.

 

[jrista]

When it comes to Rhodium, that mostly dried up in 2022 when the existing stock was exhausted. Cost was definitely the issue. Rhodium prices along with most of the platinum family of metals went insane in 2021. Rhodium for example went from $5,000 / ounce in 2019 to a peak of $27,000 / ounce in Q1-2021. For the next few years it came down a little and settled in the $15,000 range. Recently it has dropped back to the $5,000 area so perhaps it might start showing up again in pen kits?

As someone already indicated, the reason was from pandemic issues in South Africa along with power outages in the mines, an increased demand from auto makers, and even the spike in push for zero-emission alternative energy like hydrogen fuel cells that rely on platinum in their proton exchange membranes. Since 2020 these have all come back to the pre-pandemic levels.

It certainly made me cherish the Rhodium plated kits I have in my stash.

Dave

Rhodium actually spiked at just about $30,000/oz. I thought it was $35k, but it looks like it peaked a few dollars from $30k. Probably good it did, as that was apparently one of those psychological lines back then, and if it had broken $30k they were worried the sky would be the limit.

I wasn't aware of the power outages issue in SA.

The rest of the plat group metals didn't seem to get anywhere near where Rhodium did, though, even back then. Makes me wonder if the expungement of precious metal platings from pen kits was a knee-jerk reaction, and maybe they will find their way back? OR, was it more calculated and greed driven? It seemed to be done very quietly...they were screaming bloody murder about the price of Rhodium and proclaimed they would stop using it in kits. But the rest...they just seemed to silently eliminate...which makes me suspicious.

Regardless, it has certainly and fundamentally changed my opinion on these kits. I bought a lot in 21, and some more in 22. Many have chrome, hard to avoid chrome, but if I had the option, I tended to buy those with real precious metals. Gunmetal and chrome, chrome and satin chrome...stuff like that just doesn't have the same appeal, especially when the prices are near what the precious metal versions used to be. Hmm, dunno...if precious platings don't come back, I may just switch entirely to hand crafting my own pens and skip the kits. I have wanted to get into kitless anyway, as I've been looking to find ways to differentiate myself (pen making is kind of a saturated market). This is just giving me more reason to do it!

 

[jrista]

Jon, thank you for starting and providing input to the subject matter. You have eloquently described the seeming disappearance of a lot of precious metal pen kits. As a result of overly fueled rising pen kit costs & fewer plating selections, I have simply chosen to move away from pen making. Too much emphasis has been placed on so called Pandemic price hikes, methinks it's more like GREED. Perhaps the pen manufacturers/distributors may have killed their golden (pun intended) pen goose. Time will tell.

Sorry to hear you moved away from pen making entirely. I think that's kind of sad. Have you considered just going to kitless?

In the long run, I figured I would end up there anyway, but I may try to make that transition sooner than later. I figure I'll work through my current inventory of kits, then, see what I can do about getting into kitless. I found some amazing and very unique pen makers out there, who each have some interesting thing they do that sets themselves apart. One guy makes most of his pens out of damascus steel, and he has an eye for amazing pieces of this stuff. They have just the most amazing patterns in the steel. He makes all the parts, metal or otherwise, and many of his pens have custom nibs and what have you that he makes himself. I thought it was pretty intriguing!

I probably have enough stock of pen kits for a while here, but, I'm probably going ot start making kitless, just to get a feel for it, some time in the spring next year I think. I have some ideas to set myself apart a bit, some I'm even going to try with these kit pens. There is just a lot more flexibility with a kitless approach, though...I mean, the sky is the limit, right? I was even looking into how to plate things myself. There are ways to do it on your own, and there are also services you could use. If you are making a high end kitless pen, then the higherish costs of plating small things a few at a time might no be that big of a deal, if you are selling a pen for $1000 or thereabouts.