Custom Sheet Metal Fabrication: What You Should Know

Posted on: 22 October 2015

You might not think of recycling as a great economic market for your investments or your involvement, but there you would be wrong. Scrap metal recycling, especially recycling aluminum, is one of the most effective and useful forms of recycling, and it's an industry that will only keep growing as demand for aluminum continues to increase. Here are a few ways you can get on board the money train of aluminum recycling and why it's a great investment.

What's the worth of aluminum?

Investing in metals usually means gold or silver to most people. However, unlike silver and gold, whose value is determined largely by their worth in jewelry making and electronics, aluminum has many niches to fill in daily life. From soda cans to construction materials to automobiles, aluminum is versatile and ubiquitous in modern living. In fact, analysts believe that aluminum will become the new material used for most car bodies, replacing heavier steel in favor of lighter, more efficient automobiles. The market for greener, more effective products will continue to rise, and aluminum is an integral part of that movement. 

Recycling aluminum then not only helps to continually reuse aluminum that is already in circulation, but it saves in mining and production costs. In fact, recycling this metal into new products takes over 90% less energy than refining it from raw bauxite. Investments in recycled aluminum therefore will have a higher return value, as production costs compared to output costs are minimal compared to mining a new product.

Basically, the demand for aluminum and the cost-effectiveness of recycling over refining make this metal one of the wisest choices for investments. Many larger corporations have seen the value (and the customer appeal) of recycling and have put forth the funds to build the infrastructure needed. 

How can you invest?

Investing in the metal itself is one way to reap the benefits of the market, but the market can be a rollercoaster for the actual sale value. Buying up large stocks of aluminum can be risky if you are not following the markets closely, as the turn-over rate for this metal is less predictable than more stable assets like gold. If you're not a risk taker, try putting your money toward smaller, more local efforts, including:

• privately providing funding for infrastructure or overhead operating costs in aluminum recycling plants, especially if public recycling is not prominent in your area. Recycling takes capital in order to get its feet off the ground. Your investment can provide that lift, and with the right percentage agreement, once in operation, the gift will keep on giving.
• collecting scrap metal and selling it directly to a recycling company. Usually, these companies pay for aluminum by the pound. 
• investing in an aluminum production company. These companies may buy recycled aluminum or recycle it themselves, depending on their target market. Either way, as an investor, you can encourage the production of goods from the most cost-effective source: recycled or reused metal goods. 

You can also promote aluminum recycling in a round-about way: invest in companies, either local or worldwide, that make a point to buy recycled material. For example, if you are the financial backer for a small construction company in your area, you can support the recycling business and protect your investment by requiring the company to use your money for recycled or green products. You might even make it a point of the investment agreement that the company only buys from specific producers. If you can, consider investing in the producers as well in order to promote the growth of both companies. 

If you have questions about getting into recycling aluminum, or investing in recycling, talk to a company in your area, such as Pure Metal Recycling, about what options are available for you.