How Gold Refining Companies Earn BIG Profits

If you have ever visited a gold refinery, the question of how they earn profits may have crossed your mind. The mere fact that they deal with such a precious metal, most certainly associates gold refining companies with big salaries for their staff members as well as huge revenues for the company itself. And if this is your assumption, you are for sure correct. Gold refineries, like many other industrial companies are versatile and offer various services to both consumer and business clients. The variety of services that these companies offer can bring in substantial profit. With this in mind, how do gold refineries earn big profits from their capabilities?

What They Do

Your average gold refining company offers a variety of services that offers their clients many options and accommodates their needs when it comes to their gold. As you already know, the primary purpose of a gold refinery is to refine gold, using a series of techniques to process it and remove impurities. Removing the impurities will allow them to extract the pure gold which they can then sell for other purposes. This could be for the sale of pure gold itself, or it could be sold so the gold can be mixed with alloys for other uses. Depending on the refinery, the focus might vary. Some cater directly to everyday consumers while others focus on industrial sectors that deal with metals. This of course can influence the amount of revenue they generate, since the consumers they focus on will bring varying scales of gold with different values to these companies.

The main services that almost all gold refineries offer involve assaying and parting. Some gold refineries also offer additional services, such as electronic recycling and brokering of non-ferrous and ferrous material. Aside from gold, many refineries offer the assaying and processing of other precious metals such as silver and platinum.

How They Do It & Why They Do It

The processes of gold refining companies can differ in terms of assaying and parting. However, they generally use the same techniques to arrive at results that will indicate how much your gold is worth. Within these processes, there may be differences in terms of the machinery and equipment they use. But at the end of it, a reputable gold refinery will give you the best value possible for the gold you present them with.

The process begins with assaying, which is a fancy way of saying that your gold is assessed for its precious metal content. The refinery weighs the gold in whatever form it may be (jewelry, bullion) and then tags it. They may even employ acid tests using nitric acid in order to make note of its resilience or lack of it, to determine the composition of the gold. Assayers will also take a drilled sample from the gold and send it to a laboratory that will determine the gold composition. The assay will then use varying methods to further determine the composition of gold, the most common being a fire assay. This involves heating the gold sample up in high temperature furnace, mixed with compounds that will separate non-precious metals from the gold.

The process continues with the actual refining of gold, to separate the impurities that are in it. There are different processes that could be used, including the Miller process and the Wohlwill process, both of which are highly effective in separating impurities and producing pure, high-grade gold.

How They Collect Big Cheques

Gold refining companies earn cash using some of the above-mentioned services. One of the main sources of their profits stems from impurity charges. These charges stem from the assays (gold content measurement) they make at the beginning of the process. Removing impurities from gold increase the value of the metal, and this allows them to generate profits. Gold refineries often receive lots of customers, and for those bringing in gold with high karat value bring higher profit for the company. Gold refineries also rake in big profits through means of industrial refining, providing services to companies who use large amounts of gold for the production of their own products. These companies pay much more than the average consumer and this too generates more profit for the refining company. Golf refineries also sell their gold on COMEX (currently known as the Commodity Exchange) and/or other exchanges who serve as marketplaces for gold, thus adding an additional source of revenue.

Industries that Keep Gold Refining Companies in Business

Companies in various industries make use of refined gold, making gold refining companies essential. The most obvious use of gold lies in the financial industry, where banks, marketplaces, and other financial institutions make use of gold coinage and bullion bars. However, other industries such as the medical industry make extensive use of gold, including the treatment of rheumatoid arthritis. The dental industry also uses gold for fillings, since it serves as one of the most durable and comfortable materials a person can harbour in their mouth without causing discomfort. The electronics industry also uses gold, and this can be seen in their memory chips and microprocessors for the use of computers. All of these applications make gold refining companies profitable, since they are primary source of refined precious metals in the world.

Now You Know How Gold Refining Companies Make Bucks

The expertise of gold refining companies makes them very profitable since, they cater to both the public as well as major corporations. Their ability to remove the impurities and extract pure gold with precision makes them very valuable in today’s world, especially as the demand for gold increases. Gold refineries use a combination of technology and chemistry to ensure that their clients receive the best value for the gold they sell. So if you have ever wondered how refineries make their cash, you now have an answer! You might even find yourself wanting to get involved with the process and work at a gold refinery yourself.