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The Recycling Entrepreneur
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1. Announcements and Commentary
2. Precious Metals Confiscation - Could it Happen Again?
3. How to Market Your Recycling Business Locally - Using Inexpensive FAX Technology
4. Book Review: GOLD Refining by George Gajda ISBN:0-686-17797-S P.O. Box 1846, Santa Monica, CA 90406
5. Coming next month: More Insider's Tips for Utilizing Technology In Marketing Your Business; A Big Surprise
Wrapup: The answer to last month's question
Next Month's Question: What are the four commercial classifications of Platinum?
It has been sort of a quiet month; I am devoting time to setting up a new business to buy scrap from the public via mail (see last month's issue). I have also decided that it is time to start a MAJOR re-write of the manuals.
Optimistically, I hope to have that completed by the end of June.
The good news: New chapters on ferrous and non-ferrous specialty metals and little-known techniques for profiting from them; revision of the info on hard drives and addition of a chapter on recycling disposable office supplies such as toner and ink-jet cartridges.
The bad news: I will charge a new and substantially higher price for the updated manual. It will be worth it, IF you are serious about this business. If you are not, I would prefer that you not invest in my information!
The BEST news: the online updates will be available FREE to CURRENT owners of "High-Profit Recycling"!
Do you sense a sales attempt here? If so, go to the and lock in TODAY's price. I will be making the updated version available on CD-ROM for a very nominal fee, and the printed manual for a minimal amount compared to the cover price. ...But the online files will be available to you FREE if you've already bought.
I also want to implore you to obtain this information: http://homebusinesstaxsecrets.com/t.cgi/191493 If you reside in the US or Canada and have a home-based business, this manual will pay for itself THOUSANDS of TIMES over! You see, you MUST operate your business in a manner which will give you every tax advantage possible. More importantly, you must know how to keep accurate records to justify all the advantages.
If you do not invest in this manual, you should not be in business, and you probably will not be for long. The tax savings (if you a currently employed) alone can finance a good part of your business if you work wisely.
Yes, the link above is an affiliate link and I will make a commission when you buy. And, frankly, if that offends you, remember how much you are paying for this newsletter. I have made a commitment to you that I would not bombard you with correspondence and other products unless I feel that YOU are the beneficiary. So you'll just have to trust me when I tell you that you NEED this manual to be successful. Enough said?
I hope you are seeing success in your recycling business. Precious metals are gradually climbing in value but the potential for explosive price increases, especially in silver, is still strong. Once this happens, you're going to see every Tom, Dick, And Harry out there trying to buy YOUR scrap! So get started today!
If you've already started and need help or advice, remember that I am only an e-mail (or fax) away. I am always ready to advise or refer you to someone who can answer your question. For up to the minute metals prices, go here: www.kitco.com
Remember, this ezine is designed to be support material for "The Recycler's Library". If you are not currently an owner of the manuals, you know where to go and what to do. Remember, you will lock in today's price and get access to the NEW manual (which will cost a lot more) if you ORDER TODAY!
http://www.gold-eagle.com/gold_digest_02/stott022702.html
Although what FDR did in the 1930's could not actually be called confiscation, the situation serves as an example of the typically misguided actions of he government to interfere in economic freedom of the populace. The question is, could history repeat itself?
Since President Nixon reestablished the legality of gold ownership for US citizens, there has been a constant marketing effort by coin dealers to sell you on the fact that numismatic coins you might invest in are exempt from government "confiscation".
But what is the likelihood of such a thing happening again?
In my opinion, the chances are extremely slim for a number of reasons. Not the least of these is that it is just not practical or necessary. The efforts of the 'financial experts' to educate the public that gold and silver are dead investments has been too successful. The majority of people who buy precious metals as investments these days are those who have a healthy distrust of governments and their financial mismanagement.
But let me propose a possible scenario: that of rationing, particularly of silver. The public has no idea of just how serious the shortage of silver bullion is, nor how absolutely necessary an industrial commodity it has become. Through serious mismanagement which I've talked about in previous issues, we may very well experience a time when the government realizes the need to "nationalize" the stock of silver metal in whatever form it may exist.
This silver supply scenario, while bordering on far side of credibility, reveals what may become reality. I am not saying that this is likely to happen, but some form of severe governmental response to the impending silver shortage is almost a given.
Those who already have an active market trading in precious metals scrap are going to capitalize to a major extent. Will that be you?
Although I neglected to mention it above, one of the major chapters in the newly revised version of "High-Profit Recycling" is going to address the topic of marketing your business. The changes that have occurred in the past 25 years since I started recycling professionally are profound. Nowhere more so than in the field of technology.
Recycling, especially of the precious metals, has always been a one-on-one, face-to-face process. This is still true to a great extent.
After all, you are asking someone to part with highly valuable materials. Do not underestimate the psychological attachment people have to gold, silver, and platinum, regardless of the fact that it is SCRAP!
Like any other business, you need to establish a rapport and sense of trust and consistency with your clientele. Does this negate the use of technology? Not at all!
It just means that you need to use it judiciously. One of the most valuable tools you can have at your disposal is fax capability. Nearly EVERYONE today has ready access to fax capabilities, whether through their PC fax/modem, easily available public fax machines, or even in their own home. Fax machines are available for around a hundred dollars and you'd be surprised at how many people have a machine at home. EVERY business considers fax technology as a MUST HAVE - and you should be no different.
There a few pointers you must be aware of, however. You NEED this technology - both to receive communications from your customers and to reach them in an efficient and affordable manner. But you don't need to have the hassle and expense of your own machine and a dedicated phone line for it in your abode.
Yes, you need to have FULL-TIME capabilities to both send and receive, and the most cost-effective way to have both is by subscribing to a service such as E-Fax. There are myriad services out there, but I am going to recommend only one, for now, at least.
Go to: www.efax.com and open an account. For about ten bucks a month you can get a local fax number exclusively for your use, almost regardless of where you live. Put this number on your business cards and make sure that you collect fax numbers from the people (customers and prospects) whom you call on. Why?
Because you need to have a "business relationship" already in order to send faxes to people or businesses without fear of being accused of "spamming", or violating 'junk fax' laws. A business relationship simply means that you have contacted the people you are faxing previously and they have consented to receiving communications from you (in writing).
OK, Scott, I've got a fax number, now what do I do with it? Basically, you sell your customers on the idea that if they have scrap to sell, they just have to fax you, 24 hours a day, and you'll respond promptly.
Provide them with order forms, contact sheets, and requests for price quotes from you. Make their relationship with you effortless, and they will continue to do business with you. I will give you specific examples of some forms I use in the new version of my manuals.
Next month I'll give you some methods to set up a fax-back system that will allow anyone with a fax machine to access any information you want to make available to them - all at a very small (or FREE) cost to you, so be sure to tune next month!
Oh, yeah. Get your copy of High-Profit Recycling today and lock in the availability of the updated materials - free!
Want to learn more about the processes used in refining scrap materials into pure precious metals? Then this is a book you should try to obtain.
I will reiterate my contention that your role as a recycling entrepreneur is to locate, purchase, and sell your scrap materials without the expense, danger, risk, and time involvement in refining. I hope I am preaching to the choir, but refining is not where the money is.
That being said, the more you know about what happens to your scrap once it is in the hands of the refiner the more professional you will be. This book, like most of the recycling books I review, has been out of print for some time. If you can locate a copy, do it!
Mr. Gajda covers a lot of material in a manner which is readily understandable to the neophyte regarding the identification and classification of different types of scrap material which you should really understand. Testing metals through mechanical means such as scratch testing, specific gravity, and gravimetric determination is discussed.
He then goes on to explain the different methods of dissolution, precipitation, and other types of extraction and the chemicals and equipment used. Not only does this book cover gold, but silver and the platinum group metals uses and recovery are explained. One of the most interesting chapters for me is the one illustrating the different types and colors of gold and platinum alloys, and what gives them their unique characteristics.
I have benefited more from this one book in my knowledge or refining and metallurgy of the precious metals than any other single source I could name. I believe you will do the same if you find a copy.
Book Review: To be Announced!
Wrapup: Next month's question: What are the four commercial classifications of Platinum?
Last Month's Question - Where does Gold come from?
Answer: Everyone knows that gold comes from the ground, right? OK, I'll concede that point!
However, to be more precise, let's ask where the current gold supply comes from. Go here: http://minerals.usgs.gov/minerals/pubs/commodity/gold/300302.pdf and you'll learn some interesting facts about how much gold is mined in the US, as well as what percentages come from new production as compared to scrap and imports.
While you're at that site, browse around - there is a wealth of free info and knowledge you won't find elsewhere. Government data bases are but one of the 'hidden' resources I taught you in last month's newsletter. Learn to find and use them!