How Much Should You Pay For Scrap-Electronics?

If you are considering paying for scrap-electronics, say from a neighbor or a junk yard, how much should you pay?

For example, your neighbor has a bunch of old computers and cell phones gathering dust in her basement. If she is anxious to get rid of them you can, of course, just cart them away and she might be grateful for the space. But if she wants to get some money for her scrap, what might be a fair price?

The simple answer is: as little as possible.

In our Scrap4tTreasure program we never tell you how much gold or silver or platinum can be found in a single item. It is virtually impossible to know.

Instead we do a simple calculation: Let's say the current spot price of an ounce of gold is $1600. One ounce of gold is equal to 28.3495231 grams. Divide $1600 by 28.3495231 and that equals approximately $56 per gram.

Now let's be very conservative. Suppose that you are able to recover 2 grams of gold from your neighbors junk. Let's say that after it is refined you make about $100. If you paid, for example, $15.00 for your neighbor's scrap electronics you are ahead by $85.

If you want to purchase as many electronic parts and pieces as possible, do the math using the current spot price of gold or silver and make an offer that gives you plenty of margin for profit.

Why You Need to Recover as Much Gold as Possible

Scrap4Treasure is about recovering precious metals from e-scrap and scrap machinery.

If you need one more reason why this is a great opportunity for you, consider this:

- Average wages in 1959 were $5,016 or 143oz of Gold
- Average wages in 1977 were $15,000 or 120oz of Gold
- Average wages in 1999 were $28,970 or 104oz of Gold
- Average wages in 2008 were $41,335 or 53oz of Gold

As you can see, owning gold and silver and platinum, however you get it, is practically a necessity if you want to have any chance of staying ahead as the purchasing power of the dollar diminishes.

Pity the folks on fixed incomes or those who have not learned how important it is to own physical gold/silver/platinum.

So as you're out there collecting the right kinds of scrap and recovering the precious metals inside, you can be assured that your hard work will pay off.

Mining for Gold in Old Cell Phones (found on CNBC.com)

A wireless conference might be the last place you'd expect to see a precious metals refinery company, but precious metals are prevalent in cellular devices and once stripped down, those metals can be cashed in.

"We look for gold, silver, palladium and copper in cell phones scraps... We return those metals back to the commodity markets," said Todd Willis, Senior Account Executive at Redlan Metals, a precious metals refinery that is exhibiting at CTIA. But in order for recycling cell phones to be profitable, there needs to be a lot of old cell phones. "The key is you have to have enough volume in order for it to be economically feasible to go through the recovery process," Willis said.

But, it's not just cell phones that can be recycled for precious metals. Other telecommunication devices can also be recycled for precious metals, Willis added. These include air cards, cell phone chargers, SIM cards, and lithium ion batteries. These old devices can't be found just anywhere in high volumes though, that's why Redlan Metals seeks out companies looking for an environmentally safe way to dispose of old products as clients. "We look to partner with companies, large corporations, to help them with their sustainability initiatives for the future with recycling." Willis concluded.

Building a Scrap4Treasure Funnel

You can make good money recovering gold, silver or platinum when you develop a system for finding the scrap you need. We call this 'building a a Scrap4Treasure funnel. A funnel is a an object you use to channel the flow of a substance into a larger container.So, a Scrap4Treasure funnel is a way to get the right kinds of scrap to be poured into your container - your basement or truck or wherever you keep it.

At Scrap4Treasure we show you ways to get that scrap from scouring junk yards, flea markets, auctions, recycle companies, schools and from businesses that need to have old electronics carted away. It all starts by knowing where to look and by letting people know you are interested in their old electronic scrap.

It is important to remember that funneling can sometimes take more time than recovering the precious metals inside. But if you maintain a system for funneling a steady source of scrap you will be way ahead of all those who just go out from time to time and hope for the best.