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Customer Web Site:
http://CashOutMyGold.com
Precious Metals Exchange, Corp. (OTC: PRMX)
Precious Metals Exchange, Corp. purchases broken or unwanted gold and precious metals from customers in U.S., Canada and Latin America identified through its direct marketing efforts.
Potential customers are identified with in-house direct marketing tools and online advertising. A proprietary web-based Customer Relationship Management interface systems enhances PRMX’s ability to earn potential business. The Company’s Customer Relations Management (CRM) tool automatically handles customer needs while providing safe and secure way to account for customers’ items and while providing the top offer based on real time precious metal prices.
Precious Metal’s processing partner refines the material purchased and assays and determines the actual pure gold content.
Profit is made from the margin between the price paid for the materials and market or ‘spot’ price of the precious metal content.
The price of gold has increased over fifty percent in the last year, reaching record highs that the market has not seen since the late seventies. The current high price of gold, combined with the economic downturn over the past several years has led to a dramatic increase in the number of people who want to cash in their gold or other precious metal items.
The Company is publicly traded under the ticker symbol (OTC: PRMX)
Company Overview
PRMX has a direct relationship with one of America’s largest and most respected refiners.
PRMX believes it makes a higher payout to its customers than traditional outlets by bypassing traditional recycling intermediaries (pawnshops).
Gold, Silver and Platinum are at significant price heights. The economic downturn has led to a dramatic increase in the number of people wanting to cash in their gold and other precious metals items.
Over the lifetime of an individual consumer, 100% of their precious metal items purchased 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 Precious Metals Exchange Corp. serves as an intermediary between holders, refiners, marketers and consumers.
Direct Marketing Program
Solicitations are made for the mail-in purchasing of gold jewelry, coins and other predominantly gold items from the general public, paying significant discount from spot market prices for gold content.
Interested parties fill out their request for a free kit by visiting one of the Company’s website:
- CashOutMyGold.com
A Priority Cash for Gold Kit with a pre-paid return U.S. Postal mail package inside is sent to the customer, providing them with all the materials they will need in order to return their items, free of charge. Upon receipt, items are appraised based on the quality and quantity returned. A check is then issued to the customer and, if accepted, the items will be refined into pure form.
CashOutMyGold™
CashOutMyGold™ is the recognized brand name of PRMX for consumers. The interactive CRM based website is where customers begin the process of recycling old unwanted and/or broken jewelry for cash by requesting the “Priority Cash for Gold Kit”.
Customer Relationship Mangement-based Fulfillment
Automatically generated e-mails instantly notify and prompt customers in real-time through the entire processing procedure from start to finish. The back-end portion of the system is used by our technicians and service representatives to tabulate kit contents and then prepare a cash offer based on real-time precious metal prices.
The Company has devoted significant time and resources to the development of an online CRM-based fulfillment mechanism tied to its website at www.cashoutmygold.com, which tabulates customer kit contents, calculates offering prices based on real time spot metal prices and pushes e-mail notices to customers to drive the sales process. The CRM-based fulfillment mechanism furthermore expedites mailing preparation, customer identification and retention, and integrates with offthe- shelf accounting and bank check generation software.
Highlights
- PRMX is one of the only publicly held companies in the online precious metals recycling sector of the precious metals industry. PRMX expects to become a major producer of gold, silver and platinum in the U.S., Canada and Latin America.
- 47% or 90 tons of the U.S. annual gold consumption is derived from recycling. Recycling of precious metals is a major industry, and growing rapidly.
- Never ending supply of unwanted and/or broken jewelry. Another unavoidable fact: Over the lifetime of an individual consumer, 100% of their precious metal items purchased will be passed to another party or sold.
- 2007: $9.85 billion gold market in the US alone, and growing annually due to high prices of precious metals and economic displacement. $7.88 billion is purposed for making jewelry annually in the U.S.
- The Internet brings a new level of procuring new customers; guaranteed web traffic, search engine optimization, banner ads and opt-in email marketing provide new markets on a global scale.
- Highly experienced management team with precious metals, printing and direct mail marketing experience bringing proven track records of a number of successful early-stage development ventures; 35-years’ experience with online and offline direct marketing.
- Over USD $4 billion annualized in the U.S has established recycling as the next medium of mining for years to come.
- The Company’s Refining Partner is one of the most respected in the industry.
Precious Metals Market Dynamics
- Gold, silver and platinum are experiencing sustained rising markets and prices because demand is strongly outstripping supply, both nationally and internationally.
- Gold demand in 2007 outperformed traditional mining by 59%
- Recycling plays a key role in these markets accounting for approx 25% of the global supply of gold each year.
- In 2007, 30 million ounces of gold came to market worldwide from recycling, an approx. $20 billion marketplace.
- Silver and platinum also have substantial recycling markets, and are also growing.
- Unlike the relatively short-lived increase in the gold price sustained during the 1970s, this market appears to be fundamentally different based on a large and growing deficit, weakening stock markets, housing recession, global credit crisis, rising inflation nationally and globally, high unemployment, all contributing to a weakening economy.
- Concurrently, gold, silver and platinum are considered scarce and increasingly expensive to mine.
- Despite a 50% price hike, less gold was produced in 2007 than in 2006, and less again is anticipated in 2008.
- Mining is highly energy-intensive, capital-intensive, labor intensive, slow, and environmentally hazardous.
- Most recycling of precious metals comes from jewelry (83%), a vast and very basic market globally.
Scrap recovery of gold has risen from 14 million ounces in 1997 to approx. 30 million ounces in 2007.
In 10 years, this market has more than double in the amount of these metals being refined from recycling.
This makes for a powerful market force that, with ease of transaction such as the PRMX business model, and providing higher payouts for the customer, powerful returns exist for the company that promotes this shift.
Automation Effective and Efficient
Cost savings are anticpated with better “lead capture” rates due to the automated back-end fulfillment mechanism. Precious Metal Exchange developed a proprietary interface to a national leader CRM provider that permits seamless customer / Company interaction. The interface and software automates each step of the customer fulfillment process, from ordering a priority gold kit to payment for accepted offers.
Customers input contact information on The Company’s website to request a kit, a case is opened in the software, including mail merge to label printing, and an e-mail notifies the customer that the kit was sent, and then when the kit is received back to the Company.
The software tracks the kit through processing, based on manual testing of each item sent in the kit for weight and gold content, and automatically calculates the customer offer price based on real-time spot gold prices. The customer receives e-mail notification of an offer, directing the customer back to the website, where the offer is transmitted and the customer either accepts or rejects it. Accepted offers drive instructions to accounting software for check generation and mail merge for labeling; rejected offers generate instructions for kit content return, and open a window for second chance offers dependent in part on spot gold price movement.
Extensive automation means the duties of the service representatives and technicians are limited to labeling and sending kits, test kit content, and approving check generation.
Video Kit
The Company is implementing a video kit opening recording process that will both heighten customer confidence in systems, and provide a unnecessary deterrent to shrinkage. Upon receipt, customer Priority Gold Kits are logged into the CRM software and transported to the secure testing site. The opening of the kits will be on video, and a record on a secure server under the kit ID will be maintained that is available only to the customer and Precious Metals. This means the customer can assure what is sent is precisely what Precious Metal Exchange received, verifying the testing-to-offer process.
Gold Market – General Information
According to the 2007 US Geological Survey (USGS), the US uses approximately $9.85 billion of metal value in gold each year, of which approximately $7.88 billion in metal value is utilized to make jewelry. There is a shifting market trend, recycling versus mining, slowly taking place in the global precious metals market. The trend is noteworthy because the total known volume of gold mined and refined throughout history is only approximately 8,000 cubic meters, or a cube approximately 20 meters per side – a footprint slightly larger than half a basketball court –, and weighing 158,000 tons.
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 even though demand for precious metals remains constant or has increased (dependant on metal type). Couple this with overall market conditions, a current deep economic recession, and standard supply / demand curves, and it becomes easier to understand why precious metal prices have increased significantly over the last 12 months.
The USGS further reported an even starker contrast regarding silver. In 2007 United States domestic silver production equated to approximately 1,200 tons from the ground (traditional mining). This compares thoroughly 1,600 tons derived from recycling. This indicates a domestic market of around $1 billion annually in recycled silver, and approximately $750 million in newly mined silver, equating to a domestic market of $1.75 billion for 2007.
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.
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 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. A subset of these items will become “old,” unwanted,or broken each year.
Precious Metal Exchange provides consumers a method to recycle these assets for cash while returning the recycled material to the overall market.
Precious Metals Exchange Corp.
15305 N. Dallas Parkway
Suite 300
Addison, TX 75001
Phone: 972-387-7420
Fax: 972-788-4510
E-mail: info@pmecusa.com
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