Elemetal Direct. Issue 4 Vol.1 Spring 2016

DIAMOND Diamond specialists with a transparent approach to buying and selling melee diamonds and individual stones

At Elemetal Diamond, we strive to deliver the highest level of service to our clients. Whether you are buying or selling, you can expect professionalism throughout your transaction.

We deliver straightforward information and transparency throughout the process.

Our goal is to standardize the pricing of melee diamonds and give fair and competitive bids on all loose stones. Our ability to reach out to an expansive network of diamond dealers and wholesalers provides current market pricing on all categories of diamonds.

DIAMOND

ISSUE 4

VOLUME 1

Spring 2016

Refining The Diamond Trade The Elemetal Diamond team checks in for the first time with a quarterly report and update on market conditions.

REFERENCE GUIDE 4 Editor’s Note

PAGE 5

5 Refining The Diamond Trade

The Royal Mint A historic detail of the refinery and a glimpse into the London Gold Market is outlined in a guest post from The Alchemist.

PAGE 8

8 The Royal Mint 14 U.S. Mint Preview 22 One Elemetal 26 Market Outlook

U.S. Mint Preview

28 Elemetal Recycling

Louis Golino is back and better than ever with his preview on the 2016 U.S. Mint product lineup.

PAGE 14

Market Outlook Our team at Elemetal Capital provides their outlook on the marketplace and forecasts for the remainder of 2016.

PAGE 26

Elemetal Direct | 3

EDITOR’S NOTE

Spring 2016 PRESENTED BY: Elemetal, LLC MARKETING DIRECTOR: Brad Hastedt

H

LAYOUT DESIGN: Iain Duane Yu

appy Spring to all of our great customers, partners, and colleagues across the world. We hope the start of the year has been prosperous for all of you. Hopefully you have enjoyed the first few issues of Elemetal Direct as we continue to introduce you to one of North America’s largest precious metals organizations & it’s different departments.

CONTRIBUTORS: Louis Golino, Royal Mint, Bradley Yates, Elemetal Diamond, Gareth Amon

DISCLAIMER: Elemetal Direct is 100% American owned.

All contents of Elemetal Direct are for information purposes only.

As we move into the 2nd quarter, we’re pleased to report our transition to a global Elemetal is continuing to progress very well and we’re excited to keep proving to you a great service experience each time you give us an opportunity.

Elemetal Direct does not guarantee the accuracy, completeness or timeliness of the contents. None of the information contained herein constitutes a solicitation, offer, opinion, or reccomendation by Elemetal Direct to buy or sell any security or commodity, nor legal, tax, accounting, or investment advice or services regarding the profitability or suitability of any security, commodity or investment.

In this springtime issue, we’ll check in with the folks from Elemetal Diamond and they’ll provide you a look inside their interesting work. Also, we have noted industry expert Louis Golino joining us again for a great look and review of US Mint products. And, we have a great look into the Royal Mint and it’s storied past; a piece we brought you last year on a great partner. Lastly, Elemetal Capital provides a metals outlook for the remainder of 2016.

So, please again take a few moments to read through this magazine – it’s produced with you in mind -- our core customer.

We’ll always try and focus on the issues that impact you and provide communications on how we can work together better.

Thank you for your business and your commitment to our company. We look forward to continuing to serve you.

All commentary and advice in this publication is of a general nature only, and doesn’t consider your individual circumstances or financial objectives. You should always consult a licensed financial advisor for your personal investment advice. Please do your own research.

CONTACT US FOR ADVERTISING AND CONTENT Brad Hastedt bhastedt@elemetal.com

PUBLICATION INFO www.elemetal.com 15850 Dallas Parkway Dallas, Texas 75248

Elemetal, LLC Editorial Staff

4 | Elemetal Direct

Elemetal Direct is a bi-monthly publication only intended for Elemetal customers, vendors, and associates.

Refning The Diamond Trade

Quarterly Report

Elemetal Diamond buys and sells diamonds of all sizes and qualities, and offers prices that beat the competition.

Join us and maximize your business today.

TOTAL CARATS PURCHASED IN 2015 Rejection 14.02%

0.20pt - 0.99pt 10.89%

Broken 2.74%

Brown/Black 12.42%

Rounds 27.57%

109,917 carats total

Mixed Fancy 18.05%

Single Cuts 14.31% We

evaluate and purchase loose stones of any size and quality. We buy breakouts, parcels, single-stones, and diamond Polished diamond prices were down roughly 15% in 2015, but a relatively strong holiday jewelry.

MARKET CONDITIONS

season helped restore dealer confdence. Polished prices steadied in the frst quarter of 2016 and are expected to maintain current levels through the second quarter. The secondary recycled diamond market should see an increase in volume due to precious metal volatility, as sellers may look to take advantage of upticks in metals’ prices on scrap jewelry.

+15%

With improving sentiment in the diamond market, the worst may be

+10%

behind us in sliding diamond prices.

+5% 0% -5%

Samer Barrage

Jan 1, 2016

*Prices as of March 2016

DON’T FORGET...

You can trade diamonds for Elemetal Capital bullion credit.

Gold

Elemetal Diamond now covers stone removal fees on accepted diamond bids.

Diamonds

PRICING INDICATIONS Below are pricing indications for melee diamonds. These indications are as-of March 2016.

Prices are subject to change. All lots are valuated on individual basis.

SI2+ Round White

$150.00 - $250.00

SI2- Round White

$100.00 - $200.00

Single Cuts SI2+

$100.00 - $200.00

Single Cuts SI2-

$50.00 - $100.00

Off Color (Clean JKL)

$75.00 - $150.00

Mixed Fancy

$80.00 - $150.00

Baguettes

$25.00 - $75.00

Brown

$40.00 - $70.00

Natts

$50.00 - $70.00 $50.00 - $100.00

Chipped (under 0.20)

$35.00 - $55.00

Rejection

Stones above 20 points are evaluated on an individual basis.

Please call (214) 956-5843 for more pricing information.

CONTACT ELEMETAL DIAMOND

MAIL

PHONE

WEBSITE

info@elemetaldiamond.com

(214) 956-5843

elemetal.com/diamond

P A R T N E R S P O T L I G H T | The Royal Mint

The Royal Mint Refinery, a Window onto the London Gold Market

By Dr Michele Blagg, visiting Research Associate at the Institute of Contemporary British History, King’s College London

Tim Green, in his recent publication ‘The London Good Delivery List: Building a Global Brand’ (2010), provided a detailed account of the expansion of the London refining industry following the ‘gold rushes’ that took place from the mid-19th century and resulted in many new refining houses and brokerages being established in London. Inspired by Tim’s research, Dr Michele Blagg built on these accounts for her own research. Here she presents a précis of her doctorial study into a bullion refining facility, the Royal Mint Refinery, operated by N M Rothschild & Sons between 1852-1967. The study, which focused on the interaction between Rothschild and the London gold market, reveals much about the significant players in the industry and contributes to the wider understanding of the current renaissance for gold.

Last year, we introduced you to our OneElemetal initiative and committed to highlighting not only ourselves and what we can do for you, but our partners as well. Below is an article contributed by The Alchemist, detailing the historic Royal Mint and a look at the future of this great partner.

Gold is a commodity like no other. In the twentieth century it held a unique position at the heart of international relations and financial flows in monetary systems around the world.

It was the favoured commodity of the merchant bank N M Rothschild & Sons and complemented its business activities.

Niall Ferguson, in The House of Rothschild, suggested that Rothschild was never ‘jacks of-all-trades’. He described the preference of the merchant bank as specialist in a number of select markets, the aim being to establish a ‘dominant role’ in each. Throughout the 19th century the bank’s relationship to gold was secured through its ability to supply consignments of bullion to governments at short notice and in large quantities.

Rothschild reinforced its position to gold with a succession of investments and expansion in relations with overseas mining enterprises that maximised its command over precious metals. One such enterprise was that of the Royal Mint Refinery, a gold and silver refining facility. The prospect of taking on the refining business appealed to Rothschild who saw great opportunity in operating a refinery treating much of the bullion sent to the London market from around the world. The responsibility for the negotiations fell to Anthony de Rothschild (1810-1876), one of the sons and business heirs of N M Rothschild, who secured the lease from the Government in January 1852. The decision to add the word ‘Refinery’ to the previous title of the Royal Mint was a fortuitous one, affording Rothschild an element of anonymity. The ‘RMR’ brand was internationally recognisable and accepted by central banks and private investors as ‘good delivery’.

8 | Elemetal Direct

These fields have an enormous future before them and the country together will for the next 10 or 20 years offer greater scope for European capital than South America and similar countries.

One challenge in gaining a better understanding of the London refining industry was to raise the veil of secrecy and mystery that surrounded it. Many of the daily operations were performed behind closed doors, for reasons of security and the protection of secrets in the treatment process, these the Refiner “jealously and carefully” kept to himself. Another hurdle was appreciating what attracted gold to the London market.

Market intelligence played a key role in Rothschild’s success.

In 1848 Alphonse de Rothschild (1827-1905) on a trip to New York wrote back to the Paris house that ‘there is much sensation as to the gold mines in California. It seems one only has to go down and pick it up.’ From the Cape in 1888 he wrote to his cousins in London of: “the amazing stories of the riches in abundance of mining in the Cape... to listen to some of them this country has got treasures within reach as real and comparable with those of Aladdin’s grotto. The gold arriving in Europe should greatly please the Bank of England.”

An associate of the bank, Carl Meyer had no hesitation in promoting the Cape to the London house. In his opinion ‘these fields have an enormous future before them’ and ‘the country together will for the next 10 or 20 years offer greater scope for European capital than South America and similar countries.’

In 1868 Ernest Seyd noted that ‘when large refineries are carried on in connection with banking, bullion operations have an influence on the supply and demand of the precious metals in the market and thereby yield indirect profits.’

Certainly Rothschild took full advantage of the gold rushes of California, 1848, Australia, 1851, and South Africa, 1884.

P A R T N E R S P O T L I G H T | The Royal Mint Picture 1: Unpacking of raw gold from abroad at the RMR, circa 1933.

Reproduced with the permission of The Rothschild Archive.

The bank also benefited from its connection to the Royal Mint Refinery as it gained access to and control over much of the gold production within the British Empire, which in 1914 amounted to a massive 70 per cent of the total world gold production. Gold refining facilities in London were regularly improved and expanded in response to the arrival of African gold, and the silver refinery received constant supplies of demonetised coin from across Europe.

In earlier years large shipments of bullion arrived in London in the shape of blocks; bars; ingots; pieces and coins; or in any other form in which it could be offered up to the market to be sold for the intrinsic metal value. London refining firms competed against each other to secure the weekly consignments of raw gold that were boxed up and transported by coach, later by rail, to Cape Town and Durban and dispatched by ship to London. Directors of the companies donned ‘their frock coats and top hats and headed into the City each morning to call on the banks, brokers and shipping agents to compete for the incoming shipments’. Upon arrival the wooden boxes containing the raw gold were dispatched to the various refining houses for treatment. Once refined the bars were converted into the finished product ready for sale as pure gold and offered for sale on a Monday morning in the London market by one of the approved bullion brokers. In addition to refining costs gold producers were also responsible for freight charges, insurance, and any brokerage fee charged for the sale of the consignment. Jean Jacques Van-Helton calculated that additional costs incurred could be in the region of 15 per cent, which meant that the standard price of an ounce of gold (£3 17s 9d) could be whittled down to around £3 10s Gold received in London, mainly originating from southern Africa, was channeled through a variety of formal and informal links. Between 1904 and 1910 imports increased from £16.3 million to £34 million. Clarke suggested the attraction to London was ‘simply a reflection’ of the City as a wholesale market with builtin expertise and experience. Van-Helton identified four key links that attracted gold to the London market. Firstly, the London gold market was the only genuinely unrestricted market; it was free from ‘gold premiums, central bank interventions and so on, nothing impeded the import and export of precious metals.’ Secondly, as a consequence of

10 | Elemetal Direct

the Bank Charter Act of 1844, London provided a guaranteed market and minimum purchase price for gold (£3 17s 9d an ounce). Thirdly, the City was the hub of global patterns of trade and payment flows, with its myriad of financial institutions and other services it provided the Witwatersrand mines; insurance; brokerage; Stock Exchange; banking; refining facilities; recruitment of technical personnel; and the bill on London was an internationally acceptable means of payment.

Moreover, in the City the majority of mining companies were incorporated as limited companies, raised working capital on the Stock Exchange, had head offices there and held their annual general meetings, credit and overdraft facilities were arranged with banking capital against anticipated revenue from weekly gold sales. Finally, and more importantly for the London refining houses, the Transvaal possessed no Mint or refinery, and as such British banks and other South African states and colonies would not recognize a Transvaal hallmark or coins minted in Pretoria. With no established refinery shipments of raw gold continued to flow to London for treatment.

The firm’s refining capabilities increased from 3.3 million ounces gross weight of gold to 6.8 million by 1913.

Charles noted that the gold bars produced in London were ‘works of art’ By the turn of the 20th century the flow of gold to London had increased so much as to fill capacity the refineries and competition became meaningless. The three principal London refining houses, Johnson Matthey & Co., the Rothschild Royal Mint Refinery and H L Raphael & Sons were kept busy despite growing competition from German refineries that offered tempting rate reductions in a bid to steal business away from London. On 31 December 1906 Johnson Matthey, Rothschild and Raphael entered into a formal agreement that fixed the treatment price of gold in London at 3d an ounce.

It was agreed that all gold entering London would be divided between the three firms in more or less equal portions. The agreement remained in force until the outbreak of war in 1914. During this period Johnson Matthey increased its own treatment capability and entered a period of modernisation by acquiring the British rights to the new electrolytic process, developed in Hamburg, which was later replaced in 1913 by a gas-fired melting house. Not to be outdone Charles Rothschild, who had taken a keen interest in the Royal Mint Refinery, implemented a series of improvements from 1905 and after adopting the new chlorine method of refining, advanced in Australia since 1870, much improved the operation. Machinery and facilities were upgraded and he boasted that ‘my refinery is forging along nicely’. The upgrade offered a shorter processing time and thus reduced overheads and lowered refining costs. The firm’s refining capabilities increased from 3.3 million ounces gross weight of gold to 6.8 million by 1913. Charles noted that the gold bars produced in London were ‘works of art’.

The Royal Mint | P A R T N E R S P O T L I G H T Picture 2: Royal Mint Refinery staff circa 1897

Benjamin White provided a rare insight into the physical layout, management and daily operation of the Rothschild refinery.

Following a visit to the refinery in 1912 he wrote that: “The exterior of the Refinery is lofty and massive, and the visitor, as he passes through a wicket-gate in the huge doors, receives a first impression of security and space.

As [he] crosses the ample yard and becomes conscious of a somewhat sickly pungent smell, regarding which he is informed, casually, ‘Oh! That is only [sulphur dioxide].’ The first room, about forty feet square, is used for weighing; six large balances within glass cases range the walls, a counter occupies the centre, and stacks of silver bars, fine and otherwise, are on the floor. The actual refining takes place in a fine central hall, with annexes where minor details are dealt with. Five sets of apparatus stand side by side, each composed of a series of three tanks, two covered and on a high platform and one uncovered on a lower level. The liquid, with precious metals held in solutions, flows down to the lower tank, which measures about 12 feet by 6 feet and is about 3 feet deep. From the open tanks steam rises in clouds, for the contents are heated to 1000 degrees Celsius and the tanks are continually stirred with long poles to assist the action of the acid. The sulphate of copper in the solution gives a beautiful blue tint to the contents.”

His guide was George Buess, refinery manager 1912-1937.

White noted the ‘courtesy of the manager, his anxiety to explain the process and his perfect mastery of the details showed that his interest charge was by no means regarded in the light of a mere duty.’ While he suggested that ‘the upkeep of such an establishment as a refinery, quite apart from its commercial character, [was] a source of legitimate pride to its owners.’

Security arrangements did not escape his notice as he recalled that ‘around the central apparatus lies precious material in various stages of purity. The exposed heap of fine gold, in appearance like wet clay sand, demonstrates the need for perfect confidence between employer and employed.’ The matter of security was inherent to such an operation as an earlier account by Ernest Seyd demonstrates: The uninitiated might be led to think that the workmen in a Refinery, where such large masses of Bullion are under their hands, could pilfer without detection. The exact quantities of gold and silver present are, however, known with almost mathematical accuracy, and the precious metals pass from hand to hand, or in the charge of foreman, in such a way that robbery becomes almost impossible, or is, at least, at once detected.

It was not merely confidence between an employer and his staff that was required but an effective deterrent and anyone caught stealing was immediately dismissed and the matter pursued through the courts.

The turning point in the fortunes of the London refining industry came in 1919. It was announced that a native refinery, located in southern Africa, was to be established, thus at some point the hegemony enjoyed by the London refiners would be called into question. Almost certainly the outbreak of war in 1914 delayed the transfer. Evidence records growing discontent amongst many gold producers at the refining costs charged

Reproduced with the permission of The Rothschild Archive.

in London. This, coupled with the general discord as peace returned, provided the catalyst for the post-war change; the inert price for gold during the conflict, together with rising production and wage costs, reduced profit margins, fuelled greater support for autonomy amongst the producers and revived calls for a native refinery.

Reactions in London to the news of the new African refinery were mixed. Sir Lionel Phillips, London representative of the Central Mining & Investment Corporation Ltd., urged both Johnson Matthey and Rothschild to become involved in the running of the new overseas operation. Johnson Matthey was keen to take up the offer and encouraged Rothschild to join them. Rothschild had already reviewed its options and for reasons of security, in addition to the challenge involved in establishing and operating a refinery at such a distance from London, took the stance that ‘there is no advantage in helping the South Africans to cut our own throats.’ Instead it was decided that both refiners would reduce treatment costs, however at the Bank of England a different strategy was conjured up.

Dr Rachel Harvey, in a recent article in the Alchemist (65: 2012), looked at the early development of the London Gold Fixing and discussed the strategy formulated at the Bank of England as it attempted to control and manipulate international supplies of gold, to ensure that once gold was refined in South Africa it would continue to be marketed in London. The result was the introduction of the daily London Gold Fixing.

It was the role of N M Rothschild & Sons as banker, refiner and main agent for the South African mining companies that led to the firm being invited to act as the market’s chairman.

Another strategy introduced at the Bank of England proved more risky and unsuccessful. In order to build greater links with gold producers, hoping that gold might continue to be sent to London for treatment even after the new African refinery was operational. It was decided that the Bank should established its own refinery. From January 1919 plans were rushed through and an employee of the Ottawa Mint Refinery, Pearson, was seconded to set up a new facility in London St. Luke’s to attract untreated gold, which began operating from November 1920. Astonishingly the Bank announced it was prepared to ‘refine at cost’.

Elemetal Direct | 11

P A R T N E R S P O T L I G H T | The Royal Mint

Once the Rand Refinery, located near Pretoria, began to operate at full capacity the excellent position enjoyed by the London refiners since the mid-19th century evaporated overnight. One of the first casualties was the St Luke’s Refinery as it became increasingly difficult to attract gold to the new facility. Johnson Matthey, faced with the possibility of no gold to treat, suspended its gold refining operation and concentrated on the treatment of platinum that became a permanent and growing service. Rothschild continued to treat parcels of gold, although greatly reduced in size, which arrived in London. The operation increased its treatment of silver and also diversified into the treatment of copper foil and other metals. During the 1930s the London refiners received a short reprieve. Following Britain’s departure from the gold standard in 1931 the price of gold rose by 40 per cent above the gold currency price in the London market.

The inflated price stimulated a wave of new production and caused an avalanche of pre-owned gold to be returned to the refiner’s pot to be recast into bullion bars and sold. Rothschild benefited from the rise in price as gold requiring treatment was sent to London from areas of new gold production that emerged in west and east Africa.

Humanities Research Council, she was based at the Rothschild Archive, London. Her doctoral research focused on the Royal Mint Refinery, operated by N M Rothschild & Sons between 1852 and 1968, and how it adapted to the changed London gold market. Her areas of interest are in financial and business history with special regard for the actors and networks located in the London market. Her publications include ‘Gold Refining in London: The End of the Rainbow, 1919-20’ in The Global Gold Market and the International Monetary system from the late 19th century to the present (forthcoming, 2013); ‘The Royal Mint Refinery, a business adapting to change’ in Business Archives Council, Sources and History. She teaches on the ICBH MA in Contemporary British History and assists with the Witness Seminar Programme. She sits on the Business Archives Council Executive and is involved in the annual ‘Meet the Archivists’ workshop held in the City that aims to explore ways in which research students can identify and use business records in a variety of different research fields.

Picture 3: Rand Refinery office and assay office - circa Dec 1921

The closure of the gold market and introduction of government restriction on gold at the outbreak of the Second World War halted business; the industry was forced to mark time until the market reopened in 1954. At the Royal Mint Refinery the renaissance was brief, the operation became a victim of decolonisation and the independence of African states that took place during the 1950s and 60s.

The greatest threat followed the independence of Ghana in 1957. High on the new Government’s agenda was the country’s departure from the sterling area, regarded in London as ‘a simple closure to break colonial apron strings.’ Before independence the best customer of the Royal Mint Refinery had been the Ashanti Goldfields Corporation. Gold was consigned for treatment on behalf the Bank of West Africa under a 3 year renewable contract at the Rothschild facility.

Once treated this was sold at the London Gold Fixing. News of the establishment of a state refinery in Ghana meant Rothschild had two options. The first was to establish and operate the new overseas facility on behalf of the Ghanaian Government. This was rejected, for reasons not dissimilar to the firm’s earlier rejection of operating a South African refinery; regarding security and the challenges of running the facility such a distance from London, the second was to do nothing.

The Ghanaian state refinery opened in 1966 and in 1967 the partners at Rothschild made the decision to sell the Royal Mint Refinery to Engelhard. Whilst it no longer handled the raw commodity, Rothschild protected its position to gold as chair of the daily Gold Fixing that took place at its London headquarters, New Court, until 2004.

Michele Blagg (BA(hons), MA, PhD) is a visiting Research Associate at the Institute Of Contemporary British History (ICBH). As part of a collaborative doctoral award granted by the Art’s and

12 | Elemetal Direct

As a postscript to Michele’s article Stewart Murray, Chief Executive of the LBMA, has also been delving into the archives, and adds some further observations on the involvement of the Royal Mint and the referees in the accreditation process, prior to the formation of the LBMA. Refereeing the Good Delivery System Delving into the history of the London Good Delivery List in the period before the LBMA was established in 1987 is always challenging. Although Rothschilds (in its capacity as chairman of the London Gold Market) passed over to the LBMA a number of files on listed refiners, there are many gaps in our detailed knowledge of how many of the accreditations were processed. However, there is no doubt that the Royal Mint Refinery played a key role in the gold market’s accreditation process for much of the 20th century.

When the London bullion market reopened after the Second World War, it was recognised that some new refiners would be applying for Good Delivery accreditation and a formal system of technical assessment was required. Earlier, some

The Royal Mint | P A R T N E R S P O T L I G H T

There is no doubt that the Royal Mint Refinery played a key role in the gold market’s accreditation process for much of the 20th century refiners had been added to the list simply on the basis of being well-known to the members of the London market or at the recommendation of their local central banks. This was the case for instance for a number of French refiners and assayers which were added to the list in 1953. But in most cases, refiners which wished to be added to the list had to undergo technical testing of their assaying ability as well as their ability to produce acceptable Good Delivery bars. At that time, the London Gold Market used two referees to support this work: Johnson Matthey (based on its Royston refinery and laboratory) and the Royal Mint Refinery which was located in the City of London just outside the walls of the Tower of London. At that time the technical assessment procedure involved in the Good Delivery system was significantly different from the one which is followed nowadays.

The two main differences were (a) the way in which the assaying test was carried out and (b) that the two phases of technical assessment were reversed relative to current practice.

In other words, a refiner first had to submit its bars and only if they proved to be satisfactory (physically and in terms of chemical analysis) the applicant moved to the assaying test.

The referees also had to check that the gold when melted poured well and made good bars. It was notable that the Picture 3: Rand Refinery office and assay office - circa Dec 1921

referees played a much more important role in assessing physical quality of the bars at that time, whereas today this aspect is primarily the responsibility of a panel of inspectors from the London vaults.

Turning to the assaying test, this was much more onerous for the referees than it is today. At that time, the applicant was invited to manufacture three sets of 24 button samples with finenesses covering the whole range from 995 to 999.9.

These samples had to be assayed (using fire assay) by the applicant and by each of the referees. Another difference was that the assays were only carried out to four significant figures whereas today the comparisons are done on a five figure basis. In a sense, the referees were being tested just as much as the applicant. When all three sets of assays were completed a comparison of them would determine whether the applicant was acceptable. This method had a number of difficulties including the possibility that the three sets of samples might not be completely homogeneity.

When the Royal Mint Refinery was sold to Engelhard Industries in 1968, and following the relocation of the refinery to Chessington (south-west of London) the relocated refinery was technically assessed by Johnson Matthey and by the Sheffield Smelting Co (THESSCO) and after its Good Delivery accreditation was confirmed, Engelhard was subsequently recognised as one of the market’s two referees. Some time after that date, a decision was made to produce reference samples in the form of rods which could be carefully cross checked between the two referees and from which “buttons” could be cut to send to applicants. These reference samples were used for assessing the assaying ability of applicants for the next 20 years.

When gold refining ceased at Chessington in 1998, Engelhard CLAL (as it had then become) was removed from the active Good Delivery List but because of the excellence of its laboratory it continued to serve as one of the LBMA’s two referees until 2002 when the company decided to close the plant, including the laboratory. At the same time, Johnson Matthey announced that it would no longer be refining gold and silver at Royston and that it would step down as one of the LBMA referees once alternative arrangements were made.

At the end of 2003, following two years of intensive work in the preparation of gold and silver reference samples, the LBMA announced the appointment of five new referees who thus took over the baton from JM and RMR. But that is another story.

As a fitting reminder of the contribution to the Good Delivery List made by the Royal Mint Refinery and its successor, it may be noted that the gold beam balance in the LBMA boardroom was gifted to the LBMA by Engelhard-CLAL when it closed the Chessington operation (see photo).

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N U M I S M A T I C N E W S | U.S Mint Preview

2016 U.S. Mint Preview

By Louis Golino

2016 will be a year of numismatic anniversaries for a number of classic and modern U.S. coin series. hree of the most beloved classic American coins of all time – the Walking Liberty half dollar, Standing Liberty quarter, and Mercury dime – all debuted in 1916. Each of these Liberty-themed coins has been a staple of numismatics for the past century, and many collectors now in middle age began collecting these coins from circulation in their youths, especially the dimes and half dollars, which were minted until the 1940’s.

T

On the modern coin front, the two most important coin programs of the U.S. Mint – the American Silver Eagle and American Gold Eagle – both began in 1986. Issued from the start as bullion and proof issues, they have since become the most widely collected and traded U.S. coins of the modern era.

Special edge lettering Thanks to a provision in a recently enacted law that gives the Mint authority to change the silver purity of its numismatic products 14 | Elemetal Direct

currently issued in 90% silver, the collector versions of the Silver Eagle (meaning the burnished uncirculated coins and the proof coins, which are struck at the West Point Mint and have “W” mintmarks), will both have incused edge lettering on them this year to designate their 30th anniversary, although the exact wording has yet to be determined.

Bullion Silver Eagles are the Mint’s runaway success, the #1 best-selling bullion coin in history with close to half a billion coins struck since 1986. The Mint struggles each year to keep up with exploding demand, and saleshave continued to set a new record in each of the last couple years, reaching over 47 million coins in 2015.

Normally the collector versions of those coins are issued between the beginning of the year and the spring, but because of the edge lettering requirement the Mint needs to retool equipment used to produce the edges of those coins. That is expected to delay the release of these versions several months and when they are finally available; it is likely there will be pent-up demand for the first coins of these types with edge lettering.

U.S Mint Preview | N U M I S M A T I C N E W S

Buffalo and Eagle anniversaries In addition, the American Gold Buffalo coin (the Mint’s first 24 karat gold coin that is also issued in bullion and proof versions) will mark its first decade this year, though so far no special coin or set has been announced for the occasion. It is likely the proof release will have something special for the anniversary since the bullion coins are already being struck to normal specifications.

these three coins in 2016. Not all details have been worked out, including whether they will be released as a set or only individually and whether they will be minted to demand or have limited mintages, but one key detail that is known is that the coins will be issued in half, quarter, and one-tenth-ounce weights. Since the weight of the original silver coins was less than those amounts, that means the coins will be made thinner than the originals.

Platinum proof

It is very likely the Mint will issue some kind of special coins or sets for the two American Eagle anniversaries since that has been the practice since these coins marked their 10th anniversary, though no specific plans have been announced so far. Collectors hope this includes something that has never been done such as a high relief version of one or both coins.

Centennial gold coins

There is no doubt based on the high level of enthusiasm from collectors since these coins were first proposed that the three gold centennial issues will be the hottest coins of 2016, though there will be many other interesting and exciting products coming out too such as the 2016-W American Platinum Eagle proof coin. That coin will be the second coin in a two-year series begun in 2015 on the theme, “Liberty Nurtures Freedom.”

As far as the three Liberty series that began in 1916, which were products of President Theodore Roosevelt’s initiative to improve the designs on American coins that is known as the golden age of American coin design, the Mint announced last year that it will issue gold versions of each of

Elemetal Direct | 15

N U M I S M A T I C N E W S | U.S Mint Preview

The 2015 issue had a mintage limit of just 4,000 coins, which is the lowest authorized mintage level ever for a platinum or gold issue, and sold out in minutes. That coin, which sold for $1,200 when released, began trading for $2,000 as soon as it was sold out, with examples in the top grade of proof 70 fetching $3,000. Unlike some coins that increase quickly and then drop in value because many are purchased by dealers and others looking for quick profits, that coin has so far held its value because dealers were unable to secure substantial quantities and because individual buyers were so impressed with the design and quality when seen it hand.

It is likely the 2016 platinum proof will not have as low a mintage since the unusually low 2015 mintage was due to a shortage of platinum planchets. In fact, no bullion platinum coins were issued last year as a result of the shortage.

First spouses On the gold coin front, 2016 will also mark the end of the $10 series of pure, half-ounce gold coins issued since 2007 to honor the nation’s 42 first ladies from Martha Washington to Nancy

16 | Elemetal Direct

Reagan. Those coins are issued in tandem with copper-nickel presidential dollars, and the law that created the dollar coins stipulates that a president must be deceased for two years before a dollar coin, or corresponding first spouse coin, may be issued.

That is why no spouse coins will be issued for Rosalyn Carter or Hillary Clinton.

The final three coins of the spouse series will honor Patricia Nixon, Betty Ford, and Nancy Regan, and the Mint plans to issue them respectively on February 18, March 25, and sometime in July.

As a result of gold prices that more than doubled during the first half of the series, and the difficulty of keeping up with a series that requires the purchase of two or four ounces of gold per year depending on whether the buyer is collecting only the uncirculated or proof versions or both, many collectors were forced to drop out

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N U M I S M A T I C N E W S | U.S Mint Preview

of this series. That dynamic produced some of the lowest mintages in modern coin history.

Mark Twain and National Park Service commemoratives

It is unlikely any of the 2016 issues will set new mintage lows since the postwar first spouse coins have generally been more popular than many of the previous issues. However, a spike in gold prices, which many precious metal experts think is likely to occur this year, could dampen sales.

As has been the case since the late 1990’s when the modern commemorative coin program was reformed to limit it to two programs per year, 2016 will see the issuance of two such programs – one to honor the achievements and contributions of Mark Twain, and the other to mark the 100th anniversary of the National Park Service.

In terms of presidential dollars, which will include coins for Richard Nixon, Gerald Ford, and Ronald Reagan, there will likely be a lot of interest in the coin and chronicles set to be issued for President Ronald Reagan both because he was so popular and because these sets were a big hit in 2015. However, the anticipated mintage of 50,000 units for the Reagan set may be too high for it to see much in the way of a premium increase after the sets sell out at the Mint.

18 | Elemetal Direct

For Mark Twain two coins are being issued, a silver dollar and a $5 gold piece, as always in both uncirculated and proof finishes.

Collectors always gravitate to the proofs because they look more attractive with their reflective fields and deep cameo contrast between the design elements and the fields, or background elements. That means the uncirculated coins always have lower mintages, and if low enough, they develop aftermarket premiums provided the coins are also in demand later.

U.S Mint Preview | N U M I S M A T I C N E W S

The Twain coins are expected to be popular because of his standing as one of the greatest American writers and because the designs are very well done and have received a lot of acclaim, especially the images of Twain that appear on the coins. So it is unlikely these coins will set any new low mintages.

In January the Mint unexpectedly delayed the release of the silver coins due to an error on the certificates of authenticity that accompany the coins, which referenced the wrong Twain novel. On the Mint’s 2016 product schedule those coins are listed at the end with the coins whose release date has not been determined.

For the National Park Service centennial three coins are being released on March 24 – a clad half dollar, silver dollar, and $5 gold piece. Early reaction to the designs for these coins is quite not as positive as it has been for the Twain issues, specifically for the half dollar and dollar NPS pieces. However, $5 coin that depicts President Roosevelt and John Muir, the two individuals who

are most responsible for creating the National Park system, has received a lot of acclaim from collectors.

America the Beautiful 2016 is the seventh year of production for the America the Beautiful five-ounce silver coins, which are also issued as quarter dollars.

This year’s coins will honor the following parks: Shawnee National Forest, Cumberland Gap National Historical Park; Harper’s Ferry National Historical Park, Theodore Roosevelt National Park, and Fort Moultrie, which is part of Fort Sumner National Historical Park.

The designs for these coins were approved and released in 2015, and the quarter-dollar proof versions of these coins were supposed to be released in January, but as a result of another packaging error those coins have also been delayed. These designs have been greeted with enthusiasm by collectors, especially the one for the Roosevelt Park.

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N U M I S M A T I C N E W S | U.S Mint Preview

President Theodore Roosevelt is enormously popular with coin collectors in part because he is seen as being responsible for promoting the creation of the greatest classic coin designs of our past, including not only the 1916 silver coins discussed earlier, but also the $20 Double Eagle and $10 Eagle gold coins designed by Augustus Saint Gaudens. Saint Gaudens, the greatest American sculptor of his era, was tasked by Roosevelt to produce gold coins that were as beautiful as those of ancient Greece. Roosevelt is also seen as the father of the park system, and many collectors would have preferred to see him rather than George Washington on the obverse of the America the Beautiful quarters and five-ounce silver coins.

High-relief Liberty medals Another product that should attract attention is the American Liberty high-relief silver medal, which will be struck at both the West Point and San Francisco Mints and will bear “W” and “S” mintmarks for those mints. These medals are the silver counterpart to the 2015 American Liberty high relief $100 gold coin, which depicts a modern version of Lady Liberty on its obverse and a flying eagle design on its reverse. That coin was covered in an earlier article for this column.

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The gold coin turned out to be a bigger seller than many expected, reaching total sales of just a couple hundred under the maximum authorized mintage of 50,000 coins by the end of the year. The silver coin provides a more affordable option for those who like the design, and the Mint may sell it both individually and as a set with a special proof Silver Eagle. The Mint has not announced any other details regarding the medal, such as whether it will have a mintage limit.

There are numerous other products coming from the U.S. Mint in 2016, including proof and mint sets and other releases, but these coins are the ones that will likely receive the highest interest from collectors and buyers. They include many interesting themes and designs, and they will offer lots of potential for numismatic enjoyment and in some cases for profit too.

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O N E E L E M E TA L | INTRODUCTION TO A BRAND

In the inaugural issue of Elemetal Direct, we printed the following story detailing the rebirth and rebranding of Elemetal in conjunction with coordinated branding efforts that launched in June 2015. If you haven’t already, please take a few minutes to read through what has taken place at Elemetal over the last few months and learn again about who we are, where we’re going, and all of the reasons for it. As always, please visit our website at www.elemetal. com for more information. Thank you.

As our business continues to expand, we had to ask ourselves: why have many people—including our customers who use one or more of our services—not heard of Elemetal?

The answer is simple: we haven’t told them who we are.

For too long our companies have worked independently of each other, offering high quality customer service and deliverables but not efficiently marketing our entire range of services.

That is changing with the move toward one Elemetal.

he goal over the past 12 years has been to develop business models that cater to our customers’ needs for every step of the precious metals process from raw material to finished product.

Elemetal has grown from a single location to an industry leader backed by the highest level of certifications and standards of quality. We are Comex and LBMA good delivery certified. Our network of stores and key divisions preserve the highest level of integrity as we continue to grow and find new and exciting ways to serve the precious metals industry at large.

Elemetal’s dedication to our customers has made us one of the largest American-owned precious metals conglomerates.

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Elemetal Core Values Integrity, Stewardship, Discipline, Collaboration and Perseverance.

Elemetal began just over twelve years ago when two brothers saw enormous potential in gold. While the gold market was near the bottom, our founders saw a nascent blossoming industry ripe with potential. They knew it was only a matter of time before the market corrected. And as we all know the market did more than correct—it skyrocketed.

INTRODUCTION TO A BRAND | O N E E L E M E TA L

Whether you’re a miner or minter, scrap buyer or seller, wholesaler or retailer, banker or broker, Elemetal is here to meet your needs.

“We want to be able to serve our customers in every business that they do,” Wayne continues. “Some refining customers are also jewelers and pawn shops selling diamonds and watches. By creating one Elemetal, our goal is for our customers to know without a doubt, that we can help them manage their entire business.”

“It’s a funny thing for us. When we have a sales person talking to a jeweler about refining or recycling, there is a good chance that the jeweler’s case is filled with gold and silver that we had a part in delivering to him,” said Alan Stockmeister, Chairman of the Board.

“The bottom line is that currently only Elemetal has the ability to help customers on both the buying and selling side. We can also help customers buy or sell as little as an ounce, and those looking to move a ton of gold or silver. No competitor can deliver what Elemetal can to both ends of the market.”

What is One Elemetal?

As gold prices began to soar, the consumer need for an integritydriven direct buyer spurred the growth of Elemetal’s business. As the price of gold continued to rise, the need for Elemetal’s services also increased. The only option was to expand.

The founders often joke that their biggest struggle was expanding fast enough to meet the booming market.

For years, Elemetal’s customers have been dealing directly with our family of companies such as NTR, OPM, and Echo Environmental.

Those customers can rest assured that with one Elemetal they’ll receive the same quality of customer service and the COMEX and LBMA good delivery standards of our previous companies.

Each one of these divisions operates under Elemetal’s system of core values: Integrity, Stewardship, Discipline, Collaboration and Perseverance. These values are more than just words. They define Elemetal and established us as the market leader.

ELEMETAL DIRECT - Formerly NTR Metals

As Elemetal grew, it became apparent there was opportunity to diversify. The need to vertically integrate the business led to a period of organic growth and acquisitions where Elemetal diversified into recycling, refining, minting, bullion storage and other related areas designed to help the end user. However, as Elemetal grew these newly formed companies all had separate names. As a result, many of our customers didn’t know that Elemetal could assist them in every aspect of their business.

Our network of stores gives us the unique privilege of being in your backyard. Whether you’re in Anchorage or Honolulu, Bogota or Berlin, we have a store near you waiting to provide industry leading turnaround on your scrap.

Elemetal Direct will continue to operate as NTR Metals in Europe and Latin America.

ELEMETAL REFINING - Formerly OPM Metals

Many of our customers didn’t know that Elemetal could assist them in every aspect of their business

Since 1974, Elemetal Refining has been committed to offering the best rates and the most accurate and transparent assays. Our capacity to refine and evaluate large volumes of precious metals, using the most technologically advanced processes, has kept us at the forefront of the industrial refining market for decades.

“We realized that the best way to serve our customers was to vertically integrate our business so that our customers had the opportunity to work with one company from raw material all the way to finished product.” says Mark Wayne, Executive Vice President of Operations.

Elemetal Refining sets itself apart from others in the industry by using state-of-the-art refining techniques. We can refine scrap metals from a variety of sources to 99.99% pure gold and 99.90% pure silver. We upgrade impure precious metals to fine products through an assortment of unique processes. Elemetal Refining developed many modern refining practices and perfected our pyro metallurgical, mechanical, and chemical refining circuit in-house.

This decision has allowed Elemetal to proudly announce to the world in one simple sentence who we are and what we can do:

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O N E E L E M E TA L | INTRODUCTION TO A BRAND

Elemetal Refining is the only refiner in the world to have a Brinks Vaulting Service inside its refinery. The vault, independently operated by Brinks, gives Elemetal Refining clients the option to store materials within the Brinks network avoiding delays and transportation costs.

We have made a great effort toward standardizing the pricing of melee diamonds, and give fair and competitive bids on all loose individual stones. Our ability to reach out to an expansive network of diamond dealers and wholesalers provides relevant and current market pricing for all categories of diamonds.

ELEMETAL CAPITAL - Formerly NTR Bullion Group

ELEMETAL VAULT

Created with the purpose of providing constant liquidity to our partners in the precious metals industry, Elemetal Capital has evolved into a full-service trading firm.

Elemetal Vault was a natural step in the evolution of Elemetal.

After decades of experience covering nearly every aspect of the precious metals industry, we understand what gold and silver investors want and how and why they want it.

As the wholesale distributor for the entire Elemetal family of companies, Elemetal Capital focuses on physical metal trading, metal derivatives, and foreign exchange.

Elemetal Capital makes a market in all major gold, silver, platinum, and palladium products. With an inventory that includes everything from fractional gold coins to 1,000-ounce silver bars, we provide our customers with a one-stop shop for all of their bullion needs. And since our bullion trading desk is strictly wholesale, we do not compete with our customers in the retail market.

Tangible investments like precious metals are inherently secure and provide a level of comfort that paper investments and fiat currencies do not. However, storing physical gold and silver isn’t feasible for some. So what’s the solution? An exchange created for precious metal investors by precious metal investors who have access to the resources of the entire Elemetal family: A secure online trading environment with no minimums, yet capable of high volume.

ELEMETAL MINT

ELEMETAL DIAMOND At Elemetal Diamond we deliver the highest quality service to our clients. Whether you are buying or selling, you can expect the same level of professionalism throughout your transaction process.

We deliver straightforward information and lend transparency into the life cycle of diamonds.

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Elemetal Mint leverages deep expertise to provide reliable excellence while pushing the private minting industry to continually improve through innovation and craftsmanship. Our Dallas facility leads the market in precision and quality, maintaining the highest possible certifications.

INTRODUCTION TO A BRAND | O N E E L E M E TA L

ELEMETAL RECYCLING - Formerly Echo Environmental As the industry of electronics recycling continues to evolve, it’s becoming increasingly difficult to differentiate a true recycler from a typical collector. Elemetal Recycling is striving to raise the standard and redefine what it means to be a true end-of-life recycler. Our goal is to take each material type down to its most basic form and perform as much of the refining process we are capable of in the United States.

Elemetal is refining the future.

It’s key for our customers to know how these changes will effect how Elemetal does business going forward. While Elemetal has become a market leader in a short period of time, we are still an emerging company in the marketplace.

As a large-scale processor of circuit boards and electronic waste, Elemetal Recycling can buy on a per-pound or refining basis depending on quality and volume.

Changing to one Elemetal shows one of the ways we are different than our competitors. We are able to adapt to the everchanging marketplace by offering streamlined, vertically integrated customer centric performance.

Elemetal has one of the largest networks of collection facilities in the nation with over 60 locations accepting small-volume electronic waste. Our national presence provides us the resources to offer quality service at competitive prices.

At Elemetal, our focus is on the future success of our industry.

Our goal is to continue integrating divisions and services in our persistent search to find new ways to bring value to our customers.

Elemetal Recycling processes the electronics we receive in our R2 certified million square foot facility, located in Waverly, Ohio. Our facility is designed to process precious metal-bearing products from all types of industries. This division complies with all applicable Federal, EPA, state and local regulations and has an executive team comprised of industry experts with over 100 years of combined industry knowledge.

WE ARE ELEMETAL, AND WE ARE REFINING THE FUTURE.

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E L E M E TA L C A P I TA L | Market Outlook

2016 Metals Outlook Estimates

By Elemetal Capital Team

s in recent years, US Dollar pricing for gold will be largely dependent upon the pace of Fed hikes (and the anticipation thereof) versus the general consensus and the attitude towards metals. Currently, we see several median estimates of 3-4 rate hikes next year at 25bps each, leaving the Fed with atarget Federal Funds Rate (FFR) range of 1.25-1.50%. We think that is wildly optimistic and represents an aggressive case, whereas our base case is a much more likely 2 hikes of 50bps total, with a year-end target of 1%.

A

We believe the natural rate for the economy to be something between 1.5-2% (based on growth rates and inflation expectations), so any perception of continued accommodative monetary policy by the FOMC will actually result in a renewed bull case for many investors regarding gold. As we have stated before, the single best model for long term gold price strength is the degree to which nominal interest rates are below the natural rate for the economy. As this is only mildly accommodative compared to years past, it would normally be cause for a very mild or neutral outlook, but the past three years have shown the market to be very bearish on metals and commodities markets tend to overcorrect whenever possible.

The pervasive short bias in the market, in our view, largely stems fromthree quantitative sources: 1. CFTC positioning, 2.

ETF holdings and 3. Options pricing and is supported by the qualitatively dour outlook on metals in the media. Put simply, short gold, long US Dollar is a crowded trade and we expect some tailwind purely from the mean-reversion.

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The largest risk to this scenario is that inflation begins to heat up and the FOMC is forced to increase the size or frequency of their hikes versus our expectations. While inflation expectations have broadly collapsed going into the year’s end, it is not price inflation we are concerned with, but wage inflation. Unless retirees and the long run discouraged workers rejoin the active labor force, there is very little slack in the employment pool. Statistically, this is represented by a very low unemployment rate (U-3 or U-6) and near-historic lows in initial jobless claims. One of the areas where hiring is getting more difficult is skilled labor. This dearth of educated, specialized workers is likely to provide some upward pressure on wages, which should theoretically lead to price inflation on goods and services. We view this as a low to moderate probability risk.

As for relative value, we see more cause for excitement in gold than silver as we expect industrial use to diminish in silver slightly with production and hedging to be steady, while gold supply volumes may actually diminish on lower scrap. In our view, this supports a gold/silver ratio staying at our above 80x.

Our year-end forecasts: Conservative

Base Case

Aggressive

GOLD

$ 1,025

$ 1,190

$ 1,280

SILVER

$ 13.49

$ 15.06

$ 16.00

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E L E M E TA L R E C Y C L I N G | Electronics Disposal

ELEMETAL RECYCLING IS HELPING STOP THE BLACK MARKET OF ELECTRONICS DISPOSAL

By Gareth Amon

D

umping of electronic waste (E-waste) is now likened to dumping of radioactive waste. This is because electronic waste is now being disposed in under-developed countries.

However, this is illegal. About 90 percent of electronics used by developed countries end up in Africa and Asia (where recycling is seen as a big business) without any consideration about its effects.

The innovation in technology is rapid, and this is leading to release of new models of electronic devices yearly.

Fortunately, there are businesses out there that are aware of the problem and striving to fix it. Elemetal Recycling, for example, has responsibly and successfully recycled 42 million pounds of assorted electronic material, while their subsidiary company, Alpha Omega, has processed over 300 million pounds of industrial waste, recovering millions of pounds of precious and non-precious metals. Tommy McGuire, VP of Elemetal Recycling, states: “As the technology industry grows exponentially, so does the need for innovation for the disposition and management of electronics…

Recycling helps allocate these commodities towards another purpose in a world with limited resources.”

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As new gadgets are released into the market, the old or outdated ones are sent to other less- developed countries to be sold for considerable profit. EU countries dispose approximately 9 million tons of E-waste every year, with Britain boasting an estimated 1.5 million. Most electronics marked for recycling are illegally exported to developing countries. The EU, in a bid to end this illegal dumping, passed a law that prohibits the export of anything outdated or spoiled to developing countries. African countries like Ghana and Nigeria are the usual target for illegal traders of used electronics.

Recycling of electronic waste is an expensive venture for most companies, because a lot of the components used are hazardous and toxic to the environment. E-waste contains metals such as lead, mercury and a host of other chemicals that can seriously damage our nervous system. Now, instead of lining them up to be recycled, most disposal companies simply sell them to traders who them ship them off to less developed countries. Some companies that are paid to recycle electronic waste don’t even comply with the contract; instead of recycling, they ship them out in containers to Africa and Asia.

CAPITAL Wholesale distributor focusing on physical metal trading, metal derivatives, and foreign exchange

Elemetal Capital is a full-service trading frm making continuous liquidity available to our partners in the precious metals industry.

As the wholesale distributor for the entire Elemetal family of companies, Elemetal Capital focuses on physical metal trading, metal derivatives, and foreign exchange.

Elemetal Capital makes a market in all major gold, silver, platinum, and palladium products. With an inventory that includes everything from fractional gold coins to 1,000-ounce silver bars, we provide our customers with a one-stop shop for all of their bullion needs.

CAPITAL

E L E M E TA L R E C Y C L I N G | Electronics Disposal

According to a report released by the United Nations Environment Program, approximately 40 million metric tons of E-waste is produced in the world yearly. In the United States alone, over 100,000 computers are thrown out every year, and this number does not show any sign of slowing down. Half the computers disposed in the UK are illegally shipped out. Geneva’s Labor Organization reported that 80 percent of E-waste bound for recycling in developed countries always ends up in less developed countries like China and Nigeria. This is devastating and unnecessary, as companies like Elemetal Recycling in Texas are dedicated to providing affordable recycling solutions for companies, helping to preserve the environment and eradicate the problem of illegal disposal of e-waste.

Rare metals such as gold and silver can be recovered from electronic waste if they are recycled properly. So, despite the fact that recycling is expensive, most of these companies still make a reasonable proďŹ t from selling these rare metals. But it is quite tempting for these companies not to sell, as black market traders of used electronics are always poaching them for electronics meant to be recycled.

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Efforts have been made by the British Government to curb these illegal acts in recent years. This act in itself is wrong, because it affects people and in one way or another still comes back to affect us too. Young children are often employed to break down this electronic waste in countries where they are shipped off to.

These children would likely become victims of diseases caused by chemical in the devices. Solving the problems caused by illegal dumping of E-waste is a great challenge, because the E-waste trade would always ourish as a large population of people in these target countries still live in abject poverty.

RECYCLING THE

FUTURE

Elemetal Recycling is a large-scale processor of circuit boards and electronic waste. We buy circuit boards on a per pound or refining basis depending on quality and volume. Elemetal is the largest American-owned precious metals conglomerate providing good delivery gold and silver.

We melt, mint, sell, ship and store precious metals around the world. We have grown from a single location, to an industry leader backed by the highest possible certifications for standards and quality.

elemetal.com

WE ARE ELEMETAL, AND WE ARE

REFINING THE FUTURE. Our expansive network of stores gives us the unique ability to serve you conveniently wherever you are. Whether you’re in Alaska or Alabama, London or Latin America, we have a store near you waiting to provide industry-leading turnaround on your recycled or “scrap” metal. Elemetal Direct delivers the highest level of integrity as we continue to grow and find new and exciting ways to serve the precious metals industry at large.

1 800 889 0396 | elemetal.com/direct