“I’m waiting on $1,250 price.”
“I’ve only got 500 dwt.”
“I’m flush with cash now from tax time.”
“I need diamonds back for National.”
When is it time to scrap? It’s time to scrap when it’s right for you. Everyone has LOTS going on in their lives and shops but if your gold or silver is not selling, you need money, metals have come out of pawn or the price is right; it’s the right time.
I have personally always told my clients when it comes to price, “You’re never going to hit the absolute high in the market – take the price when you feel like you want/need to move on materials and go on to the next thing on your daily to do list.” You’ll have more gold in the future, it’s what you do. Remember, metals markets are like an elevator, they’ll go up and they’ll go down.
Don’t be afraid to call, text or email your Rep… Communication is always key. Keep in mind, no one will ever know what the price will do from minute-to- minute, day-to-day. Sometimes you have to go with your gut. Sometimes you have to follow the dollar, activities overseas, etc. I watch metals by the second, most hours of the day and I am constantly reading articles and watching reports on TV. My responsibility is my clientele and advising as best I can but with regards to the market, sometimes you just have to get lucky.
This is an important point I’d like to go over. When you lock or hedge or price (gold, for example) and “shake hands” on a price with your refiner, that is a binding deal. If you hedge gold, silver etc. with your refiner; know that it can and does go down as easily as it goes up. Commitment and trust has to be mutual with every transaction. If you lock 10 toz at $1,250; your first 10 toz of your lot will be priced at $1,250. If the market goes up – your first 10 toz are still at $1,250. If the market goes down to $1,200; your first 10 toz are still going to be priced at $1,250. The balance and what to do should be discussed with your Rep. You can price at settlement, consign or even take bullion back – you should always have options and you should know them.
Scrapping should be a good experience. Wait, don’t wait… Price don’t price… Make it right for you and your business. There will be more to come on scrapping soon. Stay tuned.
