Tuesday, November 1, 2011

Recycling Profit

Every time a new iPhone is unveiled, the frenzy begins again and people rush to upgrade their phones.  The focus is on the new phone and the potential profit from reselling or recycling the now outdated iPhone is left unseen.  However, companies like Gazelle are creating this secondary market and purchasing old iPhones from people.  Consumers use this opportunity to offset the price of their new phones.  If the phones are in good condition, companies like Gazelle refurbish them and resell them.  The surprise come from the hidden value in the irreparable iPhones.  On average cell phones contain 0.034 grams of gold, which doesn’t seem like much, but as the price of gold continues to skyrocket, this has become more substantial.  In addition to gold, iPhones contain copper, silver, and platinum.  These “old” and “outdated” iPhones are quickly becoming the biggest hidden gold mine.  The secondary markets created by companies like Gazelle take advantage of unforeseen profit and help offset the price that consumers spend for their new phones.  These companies will continue to flourish as the scarcity and demand for gold increases along with the inevitable creation of new phones.
-Katherine T.

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