What would be the best guess on volume of karat gold (scrap jewelry) to break even or make small profit?

[Avery]

I know there are a lot of variables contained within this question, but let just say you have the equipment and your variable costs are basically your chemicals. Anybody have an estimate on the amount you’d need to push through saying you are paying 70% of spot? I know that the purity of the jewelry bought among other things will factor in...I’m just looking for a ballpark figure.

Thanks,
Avery

 

[FrugalRefiner]

If you're able to buy at 70%, you should be able to make a healthy profit on any volume.

The volume needed is simply a matter of how much you can afford and how much profit you want to make.

Dave

 

[Avery]

Yeah. I live in Kentucky and every “I buy Scrap gold place” offers 60-62% of spot. While I know there are certain costs associated with it, that just seems predatory to me. Especially if it is someone who is desperate for money but I guess that’s why they can get away with the deep discount.

I’ve thought about (once I learn what I’m doing) actually advertising 70% and letting everyone know that anyone else would only pay them about 60%. Only problem is I live in a rly small town with a bunch of poor people in it so the market size and location isn’t rly great.

 

[kiorio]

Most, if not all, shops buying gold at 60%-62% of spot are selling it to a large refiner at 90ish%. Seems like if you can buy it that cheap, it's better to just sell it at 90% to the big boys.

Example:

I buy $1,000 of gold jewelry at 60% it costs me $600. I sell it to a large refiner, get $300 profit less the postage.

Refining it yourself: I buy $1000 of gold jewelry at 60% it costs me $600. I refine it to 99.999% and I make $400 profit, less the refining costs. Let's say it costs $20 to refine. Is that $80 worth your time and effort, chemicals? How long does that refining take? 8 hours? $10 an hour you make extra?

Now you need to make a living. So multiply all that by x10, of course granting some efficiencies gained in the refining process in volume.