When you invest in bullion or coins, you know almost exactly how much precious metal they contain – or come close to knowing.

Investing in scrap is another matter completely, as these examples show . . .

Over time, an investor bought about 200 discarded cellphones. He had paid about 50 cents for each of them, so his total investment was about $100.00. When they were recycled to extract the gold they contained, it turned out that each device contained about 0.001 Troy Ounces of gold. In sum, the gold in all those phones was worth about $350.00. So if you do the math, that shows that his investment was a very good one indeed. His $100,00 investment netted him more than a twofold return.

Have you been so focused on recycling gold, silver and platinum scrap that you have let the value of other metals and materials slip through your fingers?

It can happen. Investors who focus on extracting gold from electronic devices are one common example. They’ll extract the gold and then toss the rest of the devices, neglecting a variety of materials that are worth something.

What are these extra materials, and what are they worth? In today’s post, we are going to find out.

If you are investing in precious metals, chances are you know that gold is currently trading for $1778.30 on the London Fix. But did you also know that over the last five years, the trading price has increased $434.00? That’s an increase of about one-third. That means this is a good time to sell the gold that you are holding.

We are optimistic that the prices of our preferred precious metals – silver, gold, platinum, palladium and even rhodium – are not only stable, but poised to rise in the months and years ahead.

We have a number of reasons for being optimistic. Some are political, some tied to factors like international trade. In no particular order, here are some of the reasons we feel upbeat that precious metals, and precious metal scrap, will remain a great investment in the future.

We hope you’re visiting our home page daily to check on current trading prices for your favorite precious metals. Hopefully, they are the precious metals you have invested in, and own.

But today, we would like to consider the relationship between weight and value. Because you see, certain metals are simply heavier than others. That’s another way of saying, for example, that if you have two identically sized cubes of, say, aluminum and platinum, the aluminum cube is going to weigh a lot less than the one that is made of platinum. To look at it from a different perspective, let’s say you want to make two cubes – again of aluminum and platinum – and you want them both to weigh one ounce. If you do that, the aluminum cube is going to be about four times the size of the one that is made of platinum.

We have written many posts in the past about how to sell your gold scrap, silver scrap and platinum scrap for the highest prices.

Today, we would like to explore a related question . . .

Hunting for precious metals often involves looking for small items. You get lucky when you find a gold tuxedo shirt stud in a jewelry box. Or you find a sterling silver spoon at an antique store, mixed in alongside less valuable items of tableware, and buy it for just a dollar or two.

Sometimes it is hard to resist climbing into a dumpster and looking around. Who could resist dumpsters that look like these?

For some reason we don’t quite understand, some people who invest in precious metals think it is smart to hide them where no one will ever find them.

The question is, why is it smart to hide precious metals and conceal all the clues to where they are? If you do that, you are only inviting a lot of problems. If you pass away or become incapacitated, your heirs:

What’s in Your Toolbox?

We have written blog posts in the past about metal detectors, drones, and other equipment that can help you locate gold, silver, and other precious metals outdoors. But what tools and equipment should you have on hand when you go looking for precious metals indoors? Let’s say, for example, that you are going to comb through an old jewelry factory, welding shop, or other building that is soon to be demolished or sold?

The year 2020 was not a very good year in a lot of ways. But it was quite a good year for people who invest in precious metals and precious metal scrap, because trading prices for precious metals have remained strong or have risen. Also, a growing number of investors have discovered that precious metals offer a type of investment that is sound, even in difficult economic times.

We hope you made a lot of money in 2020 by having us test and recycle your silver, gold and even platinum scrap. But as you have noticed, a new year is dawning, so we would like to remind you that there is money to be made – sometimes a great deal of money – by investing in these additional forms of precious metal scrap.

It won’t be long until we get a new president. Will the change cause the trading prices of gold scrap, silver scrap, platinum scrap and other precious metals to rise or fall? Will those metal refineries, “we buy gold” stores near you and pawnshops be paying more for that old piece of jewelry you want to sell, or paying you less?

There are many reasons why this is a good time to make money in precious metals. Manufacturing businesses are downsizing or closing, and that gives you an opportunity to buy gold scrap, silver scrap and even platinum scrap from them. Jewelry stores are closing too. General businesses are downsizing too and selling off computers and other electronic devices. And then there is the fact that in the current economic climate, which is harsh, some people are eager to sell jewelry, household items, and other personal possessions that contain precious metals.

There are many ways to enjoy financial advantages from the precious metals you own. You can have Specialty Metals Smelters and Refiners process your gold scrap, silver scrap and platinum scrap, and have us send you a check for the value of the metal they contain. But there are other ways. You can fund your IRA or other investment accounts with precious metals, donate them to your preferred charity – and the list goes on and on.

Investing in precious gold scrap, silver scrap and platinum scrap is not gambling, for a very simple reason:

When you invest in precious metals, you are relying on experience and knowledge to reduce or even eliminate risk. When you are gambling, you can’t eliminate risk completely.

When one investor was examining a batch of thermocouple wire, for example, he was able to know what it was because he had seen the same kind of wire before. He knew how much silver was contained in the thermocouples he was looking at, and he knew what it would sell for. So he applied his experience and knowledge and made a profitable buy of silver scrap.

The meaning of the term “floor sweepings” is pretty obvious, right? You go into an area of a factory where gold, platinum or silver jewelry or other products were manufactured, you sweep them up, and send them to a precious metals refinery like Specialty Metals Smelters and Refiners, correct?

We recently had the opportunity to visit a metal scrapyard – one of those big outdoor places, five acres or more, that are littered with stuff like piles of aluminum windows, with machinery and even with big car and truck engines. It was quite an impressive site. And it made us realize that people can get scared when they start thinking about investing in metals of any kind.

Years ago, a clothing store in New York used to run commercials that said, “An educated consumer is our best customer.”

Did that store really believe in that philosophy? We don’t know for certain. But we do know that at Specialty Metals Smelters and Refiners, we admire customers who have taken the time to educate themselves about the processes involved in refining precious metals. And we have also observed that when precious metal investors know about the techniques involved in refining precious metals, they find it easier to make smart decisions that can increase the money they get once the refining processes are complete.

What makes for a good investment? As we have noted on this blog before, a good investment is one that offers a significant return on investment. If you can invest in something – a stock, a piece of gold, a painting, anything – and then sell it for three or four times what you paid for it or more, then you have made a good investment.

Yet other considerations make some investments better than others. And today, we would like to offer one of them for your consideration.