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 There is a shifting market trend from mining to recycling taking place in the global precious metals market.
Mining costs have escalated due to significant increases in fuel, energy, labor,
and transportation costs. Additionally, global environmental regulations specific
to the mining industry have become increasingly stringent over the last decade.
One of the results has been a decrease in overall global output in many precious
metals derived from mining operations. However demand for precious metals remains
constant or has increased (dependent on metal type). Couple this with overall market
conditions, and standard supply / demand curves, it becomes easier to understand
why precious metal prices have increased significantly over the last 12 months.
Between these two recycled precious metal categories, the gross estimated market
value is around $4 billion in the United States annually and growing. For newly
mined gold and silver, the United States market value is around $5.85 billion. Total
market estimates combined places the domestic consumption market at $9.85 billion
annually.
Money4Gold also provides recycling services for other
precious metals such as silver, platinum and palladium.
In our primary business, we recycle old and broken jewelry. From a long-term standpoint, and with gold and silver as the primary foundation for domestic jewelry production, the USGS figures provide a strong indicator for our future basis for “raw material” inflows. Over 80% of available gold and silver consumed in the United States annually is utilized in the production of jewelry and related artistic items that is sold to consumers. A subset of these items will become “old,” unwanted, or broken each year. We give consumers a method to monetize those assets, while providing the resulting recycled material back into the overall market.
Based on the total domestic consumption figure for the United States of $9.85 billion, approximately $7.88 billion in metal value is used to make jewelry each year. Once this jewelry is sold to the consumer, this overall metal value becomes one significant component of our company’s potential domestic market value.
The above calculations only describe the newly purchased / sold materials (jewelry
and associated items) which enter the consumer market each year. However, the overall
number of consumer-purchased items in total circulation increases each year as new
items are produced and enter the market. This additional potential inventory spans
the entire physical life of that individual consumer.
Over the lifetime of an individual consumer, 100% of his/her precious metal items will be passed to another party. Much of this will be passed onto other family members; the balance will be sold into the secondary markets where Money4Gold, Inc. resides.
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