I could be wrong, but it seems to me people just make money on the margin. When spot ticks down, they buy for 80% or so and hold until the spot ticks up, then use their permits to sell big to megarefiners at closer to 98% of spot. If you're not living hand to mouth, or if youre not just a small operation, this strategy can yield a lot of gains. It is about scale and margins.
Let's say spot is 2000usd one day. You pay 80% that's 1600usd for an ounce. A guy comes in with a dore weighing 31.1g but XRF says it is only 60% gold. You pay him 960usd, because you're buying from private citizens and that's what you get most times. But added all up not counting alloys, you've got 10oz of actual gold you bought in various forms you can turn around with your license and sell to the big guys. You wait til gold ticks up just 5%, and sell for even just 90% of spot. Let's see: a five percent increase over spot at 2k is 2100usd. 90% of that is 1890/oz and so that dore is now worth 1136usd to you. That's 174usd for almost nothing by playing the margins. The smaller the margins like 1 percent, the scale is simply larger to achieve the same type of yields.
Hi
1-2% losses here and there from time to time is not sooo bad in my world.
For my own part, it is not the main issue itself to buy karat material at the best price, refine and put my stamp on the result, which is my goal.
I consider that my small-scale side business to my regular work, which gold/silver processing is for me, SHOULD be a challenge.
I have not bought anything other than the chemicals, protective equipment, fume hood, gas burner etc that I need. The starting material itself has always been and should be free or only for a symbolic sum (discarded electronics + the flea market), is my motto.
I started from absolutely ZERO, found this forum just like many others, when I had "stuck", studied and learned from my own and others' mistakes, to today have built up my own stock (enough for me) from only e -waste and flea market finds.
I have received so much wise advice and solutions to various e-waste problems and other things here from both newbies and veterans (You know who you are). But that's just my story.
But with patience, sensitivity, an interest in learning and lots of humility, you will go a long way here. Because it IS POSSIBLE to build up a nice "stash" from e-waste alone, if even I can manage it hihi
So keep on, be safe
/Dennis