More Best Practices for Precious Metals-Don’t Leave Money on the Bench
Continuing with our list of areas to look at to maximize your precious metals return – particularly for bench jewelers.
Here are a few more to bring to your attention:
- When to send scrap
- Best shipping practices
- Understanding your return
When to Send Scrap
A few things must be determined in order to know when the best time is for your firm to send scrap.
How much scrap is generated by your organization?
If your firm generates a lot of scrap, it is important not to wait until your collection barrels are inconvenient to change out. If you see they are getting full, simply call your refiner for another container.
How important is this as a financial line item to the organization?
In other words, if you have less than 20 ounces and can afford to wait to accumulate more, you may want to exercise this option. Accumulating scrap and playing the metal price game may be of interest to you and your business. Some refiners offer a “hold” option which allows them to hold your refined precious metals until the desired gold or precious metals price is achieved in the market It is at that time the customer can call in and make the choice to spot sell their precious metal.
It is important not to just send because there is a “truck in he area”. Collectors and “cash buyers” are not working in your best interest. You run the risk of a lower estimate without performing a true fire assay. A full service refiner is looking for a repeat customer and is more apt to form a relationship built on trust with customers. Limited service suppliers may be just that.
Best Shipping Practices
- Evenly distribute weight throughout your container
- Tape jars closed
- Double bag when packaging in bags
- Completely tape all seams
- Wrap in bubble wrap or other packaging to eliminate noise
- Use security seals on containers
- Avoid descriptions on containers that identify the type of material
- Do not use words like “jewelry” in the return address
Understanding your return:
Over the years we have found that the perception of our industry is that we are selling something that is intangible and invisible – just a refining service. To fully understand your return, key factors to measure are: the weight of the shipment, the type of scrap sent and the metals weight on which you are paid.
Factors to understand, but not weight heavily on your decision should include: metal prices, after process weights, assay and settlement terms/charges.
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