Protect Yourself: A Fresh Start for your 2021 Reclaim Program

Published 01/26/2021

As one of the most unpredictable years on record comes to an end, it’s clear how quickly markets can change from one season to the next. Reclaiming precious metals through refining is your company’s traditional means for putting a little money back in your business; as we start the New Year, consider scheduling your reclaim shipments across the year to reduce your exposure to market fluctuations?

Perhaps you’re in the school of thought to save up your refining for one big shipment at year-end. But no one can predict what will happen 12 months from now, so there’s always uncertainty as to the value you’ll get for your precious metals.

For example, Gold started in 2020 at $1,519 and closed 2020 at $1,900. If you held your reclaim material for year-end, you made out OK relative to where Gold started the year. However, from July 22 through November 17th Gold stayed above $1,900 for the most part. In fact, on August 6th gold hit a high of $2,070. That difference in numbers is substantial when you’re working with tens or hundreds of troy ounces. A $100 variance per troy ounce on your reclaim adds up fast. By breaking up your shipments into two, four, or twelve this year, you’re putting your company in a better position to get more consistent results and to
maximize your reclaiming revenue for the year.

How do you know if you should schedule out shipments? We can look at your history and determine what quantities you typically generate every quarter, by the half-year mark, or annually, and help you determine a target amount of weight and value that makes the most sense for you and your company.

Sending regular shipments works best with refining melts and solutions. Aiming to meet the
minimums on material scheduled for thermal reduction (burning) may not be your best choice however, it is certainly worth a conversation.

These days, we’re all eager for something to rely on. By planning out a strategy for your
reclaim program, you’re achieving peace of mind, which is just as high value to your company as your precious metals revenue. Making a change like this is only one example
of how you can protect yourself from market fluctuations;

stay tuned to this blog for more tips, or schedule a call with
Gannon & Scott.