One man’s trash (junk) is another man’s treasure. This is the sentiment behind the idea of turning junk metal into precious metal or value. This concept of creating value is good for the environment and good for your wallet. In part one I explained how to identify this valuable junk and shared some resources I use to scale their value. Now, I want to share some methods you can put into action today that will help you get your hands on some of this valuable junk metal. Using your scrap/junk metal earnings and reinvesting in precious metals (Platinum, Gold, Silver), is what I call turning junk metal into precious metal. The reason why I think this is a good strategy to incorporating precious metal commodities into your asset portfolio is due to the amount of hands on experience/knowledge you gain as a result of seeking junk metal. Not only will you gain the ability to see/calculate an estimated value of any “junk” you find, but also an appreciation for the intrinsic value these metals have obtained throughout the industrial age onward.
Ways to Find Valuable Metals
As a disclaimer I would like to state that if you live in a world of dystopia, then you may have a hard time seeing the value or purpose of some of these methods, but if you live in a world of abundance as an entrepreneur, you will see the opportunities that lie before you. The fact of the matter is that we live in a society of consumption, and there is a seemingly endless supply of opportunity to cash-in on junk metals, and if you put your mind to it, you can create systems based on any of the following methods to make them work for you or your community.
Coin Roll Hunting
This is an old method to getting junk silver, by only paying face value for currency. To do this, you go to any bank or credit union you have an account with (some may require you to have a business account), and you “buy” any coin rolls they may have, or place an order for them to fill at a later time. Typically, quarters, half dollars, and dimes are ordered in amounts of five hundred dollars or more.
It should be noted that banks may try to deter this kind of activity, as it creates excess work for the employees, but a little persistence here may be worth it in the long run. Being organized and building a respectable rapport may be the key to getting some banks to play ball. If successful, it’s good practice to reroll your loose coins before cashing them back in, use them to purchase odds/ends, or take the time to deposit them at a Coinstar machine instead of bringing them back to the same bank you got them from. Also don’t forget to check the coin slot for anything that may have been rejected from the last deposit. Gas stations may also have coin rolls from customers, and if you stop to fill up it wouldn’t hurt to ask if you could exchange cash for any they may have.
Antique Shops, Thrift Stores, Flea Markets, & Yard Sales
These are all locations where you may find junk metal in various forms, for lower than current value or spot price per ounce/lb. This method requires you to have done due diligence before you invest your time or money. Do your research and have a clear understanding of what to look for, and what the current value is for the metals. You may find silverware, silver pots/pans, old coins, brass lamps, and more, well under current value. The best time for these locations is when there is a spike in market prices.
Spring Cleaning
One man’s trash is another man’s treasure, indeed! If trash is on the sidewalk it is considered public garbage. Driving around and collecting scrap metal, computer hardware, etc. is perfectly legal, and in fact you are performing a service to your community by keeping these items from ending up in landfills. This is a good method for up and coming scrappers, but you don’t need to wait for the spring season every year either. You can create ads for specific trash removal, like washers/dryers, televisions, AC’s, computer hardware, and more, like some old furniture, etc.
Projects and Leftovers
Another way to get scrap is through household projects, like roofing, plumbing, remodeling, etc. One more obscure way of finding scrap metal, are the “choose your parts” junkyard resellers. If you know what you are looking for you can get parts that can be broken down for two to three times return on investment.
Metal Detecting and Prospecting
Metal detecting is more of a hobby than I would consider a viable solution to finding a sustainable amount of valuable metals. The same goes for prospecting for gold. Do your own research and see if either of these activities seem like they are worth a go. If you do strike gold, here is a nice little resource to calculate your prize, http://www.goldcalc.com/.
Converting to Precious Metals
I see the junk metal industry as a way to earn yourself some precious metals, to add to your assets. Junk metals may require a substantial amount of work to make good earnings, but if you take those earnings and use it to invest in precious metals, then you have essentially paid yourself in gold/silver rather than settling for cash. On top of that, you gain an appreciation for the value of metals in general. This is one strategy to help with your overhead cost of investing in precious metals, without spending all your own hard earned dollars. Do your own research as to whether or not investing in hard asset precious metals is appropriate for your financial goals. Here are two reliable sources for buying real fine gold, silver, and other precious metals:
· http://www.apmex.com/
· http://www.pamp.com/
I do not suggest trying to find “deals” when it comes to investing in your silver or gold stack. I suggest you stay far away from Ebay, less known third party private dealers and less recognized bullion coins or bar mints, for your precious metals. If you aren’t paying close to the going premium rate, then that should through up a flag. If your dealer wears a trench coat and is located by a subway, probably a flag. All joking aside, some credible local dealers may include jeweler/coin shops, also hobby and pawn shops. You may be able to buy silver and gold bullion at banks or even the post office, but not likely if you live in the United States.
As a disclaimer I would like to state that if you live in a world of dystopia, then you may have a hard time seeing the value or purpose of some of these methods, but if you live in a world of abundance as an entrepreneur, you will see the opportunities that lie before you. The fact of the matter is that we live in a society of consumption, and there is a seemingly endless supply of opportunity to cash-in on junk metals, and if you put your mind to it, you can create systems based on any of the following methods to make them work for you or your community.
Coin Roll Hunting
This is an old method to getting junk silver, by only paying face value for currency. To do this, you go to any bank or credit union you have an account with (some may require you to have a business account), and you “buy” any coin rolls they may have, or place an order for them to fill at a later time. Typically, quarters, half dollars, and dimes are ordered in amounts of five hundred dollars or more.
It should be noted that banks may try to deter this kind of activity, as it creates excess work for the employees, but a little persistence here may be worth it in the long run. Being organized and building a respectable rapport may be the key to getting some banks to play ball. If successful, it’s good practice to reroll your loose coins before cashing them back in, use them to purchase odds/ends, or take the time to deposit them at a Coinstar machine instead of bringing them back to the same bank you got them from. Also don’t forget to check the coin slot for anything that may have been rejected from the last deposit. Gas stations may also have coin rolls from customers, and if you stop to fill up it wouldn’t hurt to ask if you could exchange cash for any they may have.
Antique Shops, Thrift Stores, Flea Markets, & Yard Sales
These are all locations where you may find junk metal in various forms, for lower than current value or spot price per ounce/lb. This method requires you to have done due diligence before you invest your time or money. Do your research and have a clear understanding of what to look for, and what the current value is for the metals. You may find silverware, silver pots/pans, old coins, brass lamps, and more, well under current value. The best time for these locations is when there is a spike in market prices.
Spring Cleaning
One man’s trash is another man’s treasure, indeed! If trash is on the sidewalk it is considered public garbage. Driving around and collecting scrap metal, computer hardware, etc. is perfectly legal, and in fact you are performing a service to your community by keeping these items from ending up in landfills. This is a good method for up and coming scrappers, but you don’t need to wait for the spring season every year either. You can create ads for specific trash removal, like washers/dryers, televisions, AC’s, computer hardware, and more, like some old furniture, etc.
Projects and Leftovers
Another way to get scrap is through household projects, like roofing, plumbing, remodeling, etc. One more obscure way of finding scrap metal, are the “choose your parts” junkyard resellers. If you know what you are looking for you can get parts that can be broken down for two to three times return on investment.
Metal Detecting and Prospecting
Metal detecting is more of a hobby than I would consider a viable solution to finding a sustainable amount of valuable metals. The same goes for prospecting for gold. Do your own research and see if either of these activities seem like they are worth a go. If you do strike gold, here is a nice little resource to calculate your prize, http://www.goldcalc.com/.
Converting to Precious Metals
I see the junk metal industry as a way to earn yourself some precious metals, to add to your assets. Junk metals may require a substantial amount of work to make good earnings, but if you take those earnings and use it to invest in precious metals, then you have essentially paid yourself in gold/silver rather than settling for cash. On top of that, you gain an appreciation for the value of metals in general. This is one strategy to help with your overhead cost of investing in precious metals, without spending all your own hard earned dollars. Do your own research as to whether or not investing in hard asset precious metals is appropriate for your financial goals. Here are two reliable sources for buying real fine gold, silver, and other precious metals:
· http://www.apmex.com/
· http://www.pamp.com/
I do not suggest trying to find “deals” when it comes to investing in your silver or gold stack. I suggest you stay far away from Ebay, less known third party private dealers and less recognized bullion coins or bar mints, for your precious metals. If you aren’t paying close to the going premium rate, then that should through up a flag. If your dealer wears a trench coat and is located by a subway, probably a flag. All joking aside, some credible local dealers may include jeweler/coin shops, also hobby and pawn shops. You may be able to buy silver and gold bullion at banks or even the post office, but not likely if you live in the United States.
