Bad Timing on Midwest Refineries submission...

Meltdown

I mailed off roughly 8 1/2oz's of scrap sterling silver to Midwest refineries... I received a check this afternoon for $200 even.
According to their included receipt, they received my package on 9/22.

On that date, spot silver was $36.17 -
The next day on the 23rd, silver dropped nearly $6 and closed at $30.93.
By the time they had processed my order on 9/28, silver closed at $30.62

According to my receipt, they paid me 90% on 8.508oz's based on their "market price" at $31.00 an ounce.

Obviously this was poor timing on my part. My question is... should call and question them about not honoring the $36 spot price on the
day my order was received?
If they are behind on their smelting and it takes them 6 days to melt my scrap, am I the one who should lose money on the silver price dropping?

I can't help but wonder if the tables were turned and silver increased $6 per oz. while awaiting smelting if my check would reflect that increase...

gecko109

An excellent point, and one that deserves discussion. I think you should be paid based on spot basis the moment they take delivery....not when they "get around" to melting it.

Wingsrule

Do they address this in their T&Cs? I have never dealt with these folks, but I know the APMEX T&Cs spell out this specific instance. Price goes up, they get the profit. Price goes down, you could be liable. Not a 100% comparison, just using that as an example.

Greeniejr

If the tables had been turned, you would have received the higher price. When we send in a melt, we have the option of locking i some of the oz. upon receipt or waiting until the final assay to lock in. The default is typically waiting for the assay to be finished like in your case. These assays are typically 1000+ oz. so I am sure the rules are a bit different for small amounts. Whether it is right or not, it is probably not worth their time locking in 8.5 oz of silver. Further you should be thankful they did an 8.5 oz. assay in just a few days or that they actually did the assay for that matter. Sending stuff off is a gamble and this time you lost.

greatnortherncoin

31.00 at 90% 27.90 x 8.5 237.15 where did the other 37.15 go ?

ricko

Best to read their rules/policy. I am sure it is covered there. Cheers, RickO

Meltdown

<< <i>Best to read their rules/policy. I am sure it is covered there. Cheers, RickO >>



This is all it says on their website.


<< <i>You receive 100% of the market or spot price on the day your order is completed and ready for settlement. >>



I suppose I'll just chalk it up to poor timing this time around. All of what I sent in was scrap sterling jewelry purchased over the summer at yard & estate sales. I had a grand total of $33 into all of it so I still came out ahead.

If my math is correct, the payout should have been $219 - I assume the $200 check was based on "average melt after weight loss"



<< <i>Silver orders under 10 troy ounces are purchased outright, based on average after melt weight loss and purity >>

BigE

PM scrapman1077, he is a nice guy and used to deal with them quite a bit---------------BigE

Amigo

Looks to me you were only paid 82% not 90%

8.5 oz / $200 = 23.52 toz paid

31.00 settlement x 92.5% = 28.67 ASW

23.52 / 28.67 = 82.03%

What am I missing here !

Jinx86

assay fee?

Twinturbo

It coudl very well be bad timing or bad luck on your part.
Realistically thought most companies are in for the profit at the end of the day, one smaller submission could be exploited but unlikely since it wont make them or break them.