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The Recycling Entrepreneur  ISSN: 1539-6789

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(C) Scott D. Andrews November, 2002

In This Issue...

1. Announcements & Commentary

2. The "Precious Metals Master File" - is it the "Rosetta Stone" for recyclers?

3. Book Review: Precious Metals Trade Guide, ISBN: 0-9632771-0-3, by James W. Bushnell

4. Trivia - How much platinum is there in a spark plug?

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*** Section 1 ***

Welcome to the November issue of The Recycling Entrepreneur, the monthly newsletter devoted to those interested in the subject of recycling for profit.

Since we here in the US have just observed Veterans Day, I would like to do something I do not usually do in this newsletter.
I am going to dedicate this issue to my "kid" brother, Master Sergeant Glen U. Andrews, USMC, from whom I have learned much more about service, sacrifice, and love of
country and family than I have ever expressed. Semper Fi, brother!

And to ALL who have donned the uniform of any of the branches of the military, whether in wartime or peace, THANK YOU! Your sacrifices and dedication, though largely
unheralded, are NOT forgotten or unappreciated.

Well, I've spent an inordinate amount of time doing computer maintenance and rebuilding since the last issue. I'm finding that the virus issue just won't go away, and there are NO surefire, foolproof cures.

I did find, however, a tool which everyone should have that spends ANY time on the 'Net. In reloading and reconfiguring all my programs, I was shocked to see all the detritus accumulated on my hard drive.

I learned that you computer is a literal history book of EVERYTHING you've accessed, deleted, or been spammed with. I don't know how you feel, but I DO NOT want anyone looking at the contents of my computer and determining my buying habits, financial details, morals, or anything else. I'm also tired of uncontrolled pop-ups and pop-unders.

The solution, which I am wholeheartedly endorsing to all my readers, is called HistoryKill. To learn more about it, and download a trial version, go here:
http://www.historykill.scottrecommends.com
Download the trial version today and experience the joy of surfing without looking at the stuff you don't want to see, and having control over what your computer reveals about you!

Onward. People are wondering about the precious metals and when we might see the start of the inevitable explosion in prices. My response is that it is likely to happen sooner than later. With the threat of war on the horizon, the financial turmoil that we haven't seen the last of (don't believe for a minute that the stock market has bottomed out), and the extraordinary loss of personal freedoms and privacy as a result of "Homeland Security", there will come a time when you'll be glad you're holding on to some hard assets such as gold and silver.

...Or you at least have an ongoing source of income from those who will be anxious to liquidate what they already have through your recycling business.

This is why you need to get started immediately. Start building a foundation TODAY.

 Need some motivation?

Read this short article on one method you can use to start small and discipline yourself to build an income in small steps. Go here, download, and read the file:
http://dangerousbook.com

Still looking for a way to start your business when you're short of funds? Did you get a tax return last year? Then why are you STILL letting Uncle Sam use your money interest-free for most of the year?

You MUST learn the unique tax strategies which will save you thousands (enabling you to put more money into your business and hence MAKE more money!).

The government wants you to succeed in your home-based business so you can earn more money, and pay MORE in taxes over the long run. But you need expert advice on how to take advantage of ALL the small business tax breaks offered. This one reference will return
THOUSANDS of times the modest investment:
http://tax.scottrecommends.com

In this issue we're going to cover one of the most pressing questions that most recyclers have at one time or another. That is the question of "mystery scrap", or, more precisely, how much gold, silver, or (any other) precious metal is in this material?

There MAY be a answer to this question, for almost any type of precious metal-bearing scrap material. Just think of who might be the single largest user of this type of scrap, and therein lies the (potential) answer to your question. Hint: think of $600 toilet seats and
$250 hammers!

But before you are tempted to skip ahead to our headline article, give this some thought: I hear from many of you that you don't have the funds to get started in your recycling business. My response to you is that almost everyone has unrealized assets which, when redirected towards a productive business endeavor, will grow steadily into an income.

Whether it is the aforementioned interest-free loan you provide the government each year through over-withholding of your taxes, idle assets such as collectables, books, CDs, jewelry, hobby items, etc., we almost all have unused items we could liquidate.

For this reason alone, you should learn all you can about eBay. Perhaps you already have bought (or sold) items through this unique CIM, or Centralized Internet Marketplace, as David Vallieres has coined the term.

If, however, you are one of the seemingly few people who have not yet registered for a FREE traders account with eBay, use this link to do so. Frankly, you NEED to have some knowledge of online auctions these days, so get yourself a free account NOW:

Frankly, there is a LOT of information out there on the Web regarding eBay and the other CIMs; some good, some poor, some free, and some dear in price.

This is some of the best, at a very reasonable price: http://auctions.scottrecommends.com

Learn all you can about online auctions, because you will undoubtedly come across many opportunities in your recycling activities which might be profit multipliers when combined with your working knowledge of these marketplaces.

For example, how would you like to be able to have eBay lend credibility to your recycling business?

 Credibility such as an actual endorsement for your business and the privilege of using their trademark, which is now universally recognized as a household name!

Well, through their Trading Assistant Program, you can become a certified seller of other people's items for a commission - which YOU set. Cost to participate?

ZERO! You must, however, meet some very minimal requirements, such as having a minimum positive feedback rating of 50 as well as a couple other standards.

Once you've studied and applied your newfound knowledge you'll have accomplished two things: First, you'll hopefully have sold some of those unused assets and raised some capital to use in your business; and you'll have qualified yourself to participate in this
uniquely profitable opportunity. Go here to learn more: http://pages.ebay.com/tradingassistants/learnmore.html

We'll cover some of the potential uses of the program and opportunities in future issues. Anytime you can get a household name to lend you their credibility, take advantage of the opportunity!

By the way, if you're going to be doing ANY trading on eBay, or need to make or accept online payments, open an account with PayPal as well:

If you have questions or suggestions as to what you'd like to see covered , let me know and I'll do my best to address it. Remember, this ezine is designed to be support material for "The Recycler's Library". If you are not currently an owner of the manuals, please review the information at: www.recyclebiz.com  As always, all back issues can be found at:
http://recyclebiz.com/the_recycling_entrepreneur_newsletter.html

*** Section 2 ***

The "Precious Metals Master File" - is it the "Rosetta Stone" for recyclers?

It seems that the most common question I get from my fellow recycling entrepreneurs is regarding how much gold, silver, platinum, palladium, etc., is there in some particular device or product?

I've been in situations where I'd have paid almost any amount to have a comprehensive reference manual of every type of precious metal-bearing scrap and its value. The closest thing I've seen to this is a set of binders filled with pictures, samples, and assay and recovery results assembled over a lifetime of electronics scrap refining by a local expert.

For obvious reasons, he wasn't interested in sharing this information for ANY price. Being an 'information junkie', I've searched for anything I could get my hands on containing any bit of this type of information throughout my lengthy recycling career.

However, such a reference guide, or at least the closest facsimile to it, DOES exist! Not only that, but YOUR tax dollars paid for it. Where? Well, as mentioned above, think $600 toilet seats and $250 hammers.

Ever wonder what Uncle Sam does with all those items it buys which become outdated or worn out? You've no doubt heard stories about $20 jeeps and WWII vintage Harley Davidson motorcycles that some fortunate surplus buyers picked up at "surplus auctions" for next to nothing. Such is the stuff of recycling urban legends.

Truth be known, the government ain't that dumb. As a matter of fact, the military is probably one of the most efficient recyclers of used equipment and materials, at least as far as precious metals go. Since military equipment is highly dependent upon precious metals in its manufacture, there is perhaps no greater single source of precious metal laden scrap material in the world than the US Department of Defense.

 In years past, when the US maintained huge stockpiles of precious and strategic metals they could draw upon to supply defense manufacturers, the government wasn't too sensitive to the need to reclaim these metals from scrapped components and products. It is a totally different situation today, however.

The Department of Defense has evolved into one of the most efficient and prolific recyclers of precious metals in the world. When you consider the hundreds of BILLIONS of dollars
of products purchased by the military annually, you'll get a feel for the magnitude of the recycling opportunity they represent.

 The problem is, they (the military) has developed a system to utilize their (relatively) inexpensive sources of labor to gather, identify, sort, and recycle most of their scrap
in-house, so to speak. Having had essentially bottomless funds for research and development for many years, some of that was put into facilities and methodologies for efficient recycling. The DoD has a mandate which extends throughout ALL the military branches, to recycle as much precious metals as possible, economically and efficiently.

As a result, the government has its own scrap industry. An integral aspect of this process has been the development of reference materials to assist military personnel in accomplishing their mandate. Do you think that they spend years teaching soldiers to recognize, by sight, any materials which MIGHT have contained gold, silver, platinum group metals, or other high-value scrap components? Not likely!

What the government HAS done, is develop a group of reference catalogs detailing EVERYTHING the military uses which has recoverable precious metal content. Computers, switches, films, weapons, household appliances, ANYTHING! And it is called
"The Precious Metals Master File". This is a set of microfiche maintained by the DoD for use in their scrap sorting facilities.

Actually, this set of fiche is not a stand alone product; there are other supporting manuals and documents which comprise as universal a reference work as humanly possible.
I bet you'd REALLY, REALLY like to get these, wouldn't you?

Well, I've been trying. Although OUR tax dollars have paid for this work lock, stock, and barrel, of course we're NOT entitled to have one. My initial approaches to the DoD for
more info are met with military stonewalling - this was developed for government use and couldn't possible be of value to CIVILIANS.

Apparently there is some indecipherable military language the materials are written in unavailable to those who aren't extensively trained in this language. However, I have a hard time believing that the average soldier working in a military scrap sorting facility is provided with reference materials which mere mortals couldn't interpret and understand.

Although my initial attempts at getting my greedy hands on this information have been rebuffed, where there is a will, there is a way! There ARE other vendors who have the blessing of the DoD to possess this material, and if that route fails, there is always the potential of filing a suit under the Freedom of Information Act.

Whatever happens, I will keep you informed of my progress, or the lack thereof. Until then, I am uploading part of the DoD's scrap facility manual regarding sorting and testing
metals to the secured directory. This is a large .pdf file which is also included on my CD-ROM. (If you currently have the passwords through your purchase of "The Recycler's Library") go ahead and take a look. It is interesting to see what the Feds provide their personnel to do their tasks. This file will be available on recyclebiz.com by the end of the week.

Perhaps if we can make this type of information available to the recycling community, we will see a greater efficiency and better profitability in our endeavors. So stay tuned to future issues - should be an interesting challenge.

*** Section 3 ***

Book Review: Precious Metals Trade Guide, ISBN: 0-9632771-0-3, by James W. Bushnell

This interesting little paperback book was found on eBay for under $20.00, so I HAD to get a copy. Compared to many of the works I've reviewed in past issues, this one has the unique feature of being currently available.

When I received my copy I quickly opened the package and dove right in. My first impression is that it was hastily written and poorly put together, not to mention not well
proofread.

As I got further into it, however, I felt more vindicated in spending the (modest) amount asked for it. You will find morsels of information throughout the book, as well as a lot of superfluous or downright incorrect information.

I'm not sure whether the authors realized that pearls are NOT precious metals, or that there is no such thing as "tinsel" strength (it is tensile strength), but the parts on testing, weights and conversions, and some of the mechanical and metallurgical properties of alloys are worth studying.

Overall, I DO recommend this book as a somewhat reliable source of information on some of the facets of the precious metals in general; it is definitely not a reference worth quoting unless you've cross-checked the materials with other sources.

*** Section 4 ***

Trivia Question - How much platinum is there in a spark plug?

Were you aware that every automobile sold in the US is equipped with platinum spark plugs? How about the oxygen sensor which works in tandem with the catalytic converter?

I've been speaking with a platinum refinery in India which has expressed an interest in recycling used spark plugs, and guess what? They don't even know what they're worth!
I bring this up to illustrate a point - not everyone who claims to be an expert (yours truly excepted, of course!) knows what the hell they're doing. Also, that those DO know
usually wouldn't tell you except upon pain of death.

Frankly, SOMEONE knows how much platinum group metal is an average automotive spark plug, but you can rest assured it isn't enough, at least with today's platinum prices, to justify the costs of collecting, shipping, and then refining the values.

So, until the precious metals' prices head for the skies, or someone devises an economical way to recovery the PGM's from these items, they are just another potential opportunity.

When it becomes a REAL opportunity, we'll be the first to let you know.

Next month's question: What are strategic metals and how do they differ from precious metals?

*** Section 5 ***

Coming next month: A new book review; Have You Considered the Benefits of Joint Ventures?; and, Cold Calling New Clients - How To Overcome the Fear of Rejection.

Have a productive and profitable month!