Scrap Recycling - Consider This
Hey!
I recently sent some scrap gold to Midwest Refinery based on recommendations on this site. I received less money than I expected, based on their claims to pay 95% with no additional reductions. However, I received a smaller check than expected. When I asked about the difference I received this response:
"...while 14K is supposed to be 58.5% pure, it never assays out that high. Also there is a 4% weight loss factored in, because eventually small orders are melted long after we settle with our customers. No karat gold comes out to plumb, even if a fire assay is performed. When we purchase gold outright (all gold orders under 3 troy ounces are bought outright) we take a 4% weight loss and figure 10K at .39, 14K at .55 and 18K at .70."
My point is that they do not pay 95% outright and they do take additional reductions. This is still not a bad deal (and WAY better than the local gold purchasing stores), but definitely not the 95% advertised. It actually works out to be around 85-86% for gold, very comparable to what Rio offers (85%) and advertises upfront with no additional reductions (based on Rio's scrap worth calculator).
In their defense, they do say they pay "95% of the amount of pure
gold contained in your order"; however, they do not tell you how they calculate the amount of pure gold they are going to pay you for. Just be aware that it will not be 95% of the weight you send after using conventional purity percentages.
I am not sure how the numbers work out for sterling scrap, but would be interested in getting information from those have recycled silver with Midwest so I can compare to Rio.
Just some things to consider when you send off your scrap.
Edits:
Just wanted to add that Midwest turned my order around very quickly and credited me for the correct amount of gold sent to them. I'm not trying to say they aren't a good company -- just that people should be aware of how calculations are done so they know what to expect when sending off valuable metals.
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