LaurenceOs said:
Cheers for the advice harold,
I've looked at a few different avenues for getting scrap, i phoned around 50 local dentist, they have always got a bloke that comes to pick it up. Should I do what you said Harold and try to beat him on price?
Very dangerous territory unless you have a firm understanding of the alloys in use.
In 1980, when gold hit the then record high of $875 in Hong Kong, many of the providers introduced alloys that were low in values. To add to that problem, there is considerable use of high temperature alloys that have, from the standpoint of the home refiner, no values whatsoever. You could find yourself in a rather difficult position, having paid well beyond worth.
While I processed a fair amount of dental waste in my many years, I processed only sparingly for dentists. Because they have an ongoing relationship with the major providers of metals, they have routinely recycled their wastes, at least for the most part. They may or may not get fair treatment, but many of them are satisfied with the status quo, and may not be amenable to anything new. I know that one of them that turned to me was much happier with his returns, but few appeared to have an interest. Likely comes with having a comfortable income and the (mistaken?) belief they are being treated well.
To be perfectly honest, the best success I enjoyed came from manufacturing jewelers. They seemed to he in need, often hearing about me and gladly providing their wastes for processing. It's entirely possible that would not be the case today, although I strongly suspicion it would be.
One of the problems with the increasing value of precious metals is the huge number of people that are drawn to the market, all intent on capitalizing on the envisioned wealth. That, of course, is generally not the outcome. It muddies the water for all, and spreads the material too thinly, so no one can make a living. That situation generally is self correcting, for as the values subside, the majority of these folks will leave the market, discouraged because the imagined overflow of money never materialized, and prospects have now been dashed.
I witnessed that very thing in 1980, so I can only imagine it would be true today. Gold, then, retreated to less than $300, where it languished for a considerable period of time. I was actively refining and continued the course. Others simply walked away, never to return. Many years were to pass before gold made a recovery, as we all know.
Bottom line---pursue manufacturing jewelers as your primary target. It is unlikely you will be successful with large corporations, most of whom have an established system, but the small consumer, the independent benchman that works in the local store isn't always well connected and often is being ***** by the refiner due to his small volume. These are the people that are looking for better treatment, at least in my experience.
One thing should become perfectly obvious to most folks. Dealing in the precious metal market is difficult. Unless one is willing to sacrifice their values for under spot, there isn't a ready market unless you become recognized as a refiner. I had no problems selling gold for spot when I refined, but my absence from the market for years has not become troublesome. The only way I can see to liquidate my holdings will be to make contact with my old customers, many of whom are hundreds of miles distant.
Marketing the platinum group of metals can be difficult unless a close relationship can be developed with one of the major refiners. The volume is low as compared to gold, and making new alloys isn't within the ability of the average home refiner, so liquidating is the only rational conclusion one can draw. Without a connection, is it not only difficult, but generally at a considerable loss. Two of the metals, palladium and platinum, are routinely found in dental alloys, so the concern is valid. Here in the States, Lou is likely able to provide a source that might make purchases at a respectable margin, but that may or may not be useful for you in the UK.
Lots of problems associated with refining, it appears! :roll:
One thing that may be of interest. While my refining venture was overwhelmingly successful, it was not by design. Were I had intentions of refining commercially, my operation would have failed miserably. I started my attempts at refining in the early 70's. It was strictly a hobby, and never intended to be a business. Only after the easing of gold regulations did others seek my services, and then only rarely. I often went without work for a few months, but word of mouth provided the odd new customer, to the point where I had work in-house on a regular basis. It was 1984 when the work load was adequate to make a living.
The intended message is that success may not come readily. It didn't for me, although I do not consider my case representative of others. YMMV!
Harold
