What’s the Difference between Investing in Precious Metals and Gambling?

Did you know that gambling casinos typically generate a profit of about 2% on all the money that is bet in their facilities? So if $10 million is wagered in a casino in one day, they make $200,000! That explains why casino hotels are likely to offer you a cheap room to stay in, or even a free one. The more people they get through their doors, the more money they make.

There is a more sobering side to those statistics too, which is that casinos are counting on you to lose at least 2% of the money you bet. And statistically, that is just about what people lose if they go to casinos over and over again. While individual gamblers might have a really good day and go home with a wad of cash in their pocket, over time they will almost certainly lose 2% of everything they bet. And casinos are counting on that.

Improving the Odds

Of course, professional and skilled gamblers apply all kinds of strategies for beating those odds. Smart poker and black jack players, for example, have mastered advanced skills that let them win more often. Ditto for roulette players. (People who like to play slot machines are pretty much out of luck; their only winning strategy is to stop playing as soon as they win, hopefully in the first few pulls of the lever.)

Gambling vs. Precious Metal Investing

Investing in precious metals is not gambling. One reason? There are many ways to help assure that you will receive a predictable, and honest, return on the money you have spent on precious metals, even if you are not sure whether your scrap contains real precious metals, or none.

Here are two reasons . . .

  • Gold, silver, platinum and other precious metals have a known value. Granted, the scrap you send to us might not turn out to contain a large quantity of gold, platinum, silver or other precious metals. But if your scrap turns out to contain precious metal, you can verify the value per troy ounce. (We post daily trading prices on our home page.)

  • When we test your precious metals for you, there is no risk. If you bet a dollar at a roulette table, there is a pretty good chance you will lose it and it will disappear. That can’t happen when you send precious metals to us for testing. If your scrap turns out to be “the real McCoy,” you receive payment. And if you decide not to have us recycle it for you, we will return it to you.

You Will Beat Casino Odds

We are not saying that investing in precious metal scrap is a sure thing. If you acquire a pile of floor sweepings or scrapings at an old factory and do not know what those materials contain, there is a chance they will turn out to have very little value. So yes, there is some luck involved when you trade in certain kinds of scrap.

But when you trade with a qualified, honest precious metals refinery like Specialty Metals Smelters and Refiners, you aren’t gambling. And in many cases, you can reliably expect to profit by a lot more than 2% of the dollars you spent to buy your scrap.

To learn more, call us at 800-426-2344. Even if you love to gamble, your return on investment is likely to exceed your expectations.  

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