Bidding on CPU processor scrap. HELP!

[ElphinAndy]

I need some sage advice here! I have been given the opportunity to bid on scrap CPUs and memory in very large quantities. From what I was told by the supplier, they have literally tons available and sorted by type. My question is how to come up with a good bid where they accept it and I can be assured of a decent profit?

To be specific, they have a supply of Pentium Pros, what would be a reasonable bid per pound for these babies? They have other processors available and if anyone think there is a better one that is easier or more efficient to process, I would love some advice on this. Is there a rule of thumb when buying scrap from recyclers?

 

[nickvc]

If you don't have a clue how to recover the values and refine them properly take my advice and say no thanks and walk away as these guys know their business and will happily take your money while you take the losses, I bet they could tell you how much they are worth to the nearest cent.
No disrespect but why sell to you when they have calls all day asking for the stuff off large refiners set up to process these by the ton, if you want to try the process buy a few samples and run them yourself and see if there's a profit left after chemicals, time and the purchase price, personally I reckon there's about 10% margin above purchase price advertised, sounds good but the work isn't easy so you will earn your money.

 

[Buzz]

Is this supplier based in the UK?

 

[ElphinAndy]

The supplier is Canadian based not in the UK.

I appreciate all advice, however I have read C.M. Hoke's book along with many other articles and being lurking on this forum for a couple of years. I have been gathering knowledge along with gathering an inventory of scrap. My chemicals, lab equipment, safety items are coming along slowly and the time is now to get going with some gold fingers, then after I am experienced onto processors. Wish me luck! This has been in development for quite some time and I have taken the "go slow" approach, but the time to get some work done has arrived. Something I recognized along the way was that simply finding suitable scrap to recover and refine was not going to work and I would need to purchase scrap in order to make it viable.

So, I am in this for the long haul and do not wish to lose money. These people I am looking at did not come to me, I went knocking in search of a suitable supplier. I just don't want to lose my shirt...or get hurt. Sometime my cautiousness gets in the way of progress. I have invested many, many hours into researching this field but lack experience in the practice.

It would be nice to get some support when I get going with the gold fingers. What do you recommend as an initial quantity, 100grams or more? I will start a new post on that subject when I am fully prepared. The tortoise wins the race right!

I hope you now know a bit more about me and understand I am serious and cautious.

 

[gold4mike]

It takes roughly 15 pounds of fingers to get an ounce of gold.

100 grams will probably yield just under a gram of gold, but it is a good place to start your hands on experience.

 

[nickvc]

Sorry but see my post above!

 

[MMFJ]

Simplest way to guarantee you make money on this?

1. Check the eBay selling price.
2. Figure out your selling fees, shipping price, holding cost, etc. and subtract that from #1.
2. Take 15% off that total.
3. Buy all you can at that price.
4. Sell for the same price you saw before.

Of course, to "guarantee", you might want to take that number to more like 65% off (certainly as much as you can get!), but the 'path' is the same - you just have to find the number you are comfortable with....

It is not hard to make money. What is hard is not getting caught up in the "fact" that you can't!

 

[goldsilverpro]

I would only buy them if I knew I could make a profit by immediately turning around and selling them. To do that, I would research and find buyers for the items before doing anything. Learn your material and its value. Buy and sell.

I follow that rule even if I plan to refine the material.

 

[ElphinAndy]

Thanks all. Goldsilverpro that's good advice and pretty much what I was thinking. Experienced opinions are valuable when starting out. Based on the average selling price on FEEbay and their associated costs I have a good idea what I need to bid and still protect myself, "even if I don't refine". You put it very clearly.

Yes, 100gram of fingers will be a small yield. I will start with a small batch and work on perfecting before moving onto bigger batches. Still waiting for my Stannous Chloride to arrive....!

Thanks everyone for your help on this. I now have a good idea what to bid without losing my shirt. It will be up to them to accept or reject my ridiculously low offer....

 

[joem]

I have always said find a buyer first, if these guys can't sell to you lower than your buyer then say "ok thanks, call me when you can" . here is a kick in your pants STOP SEEING THE HIGHEST AMOUNT OF GOLD YOU CAN GET AND LEARN TO MAKE SOME MONEY.
Ebay won't help you, it's a gamble. Get a buyer and work with them. Sorry had to do it.

 

[Smack]

Just a thought; If your going to have to finance your purchase, you should find a buyer first and get a" letter of intent to purchase" from that buyer.