NTR buys OPM - Now North America's largest gold buyer
Posted: Tue Apr 10, 2012 7:20 pmHigh Metals Demand Spurs Merger of Recyclers
By CAROLYN CUI
Capitalizing on booming demand for precious metals, two privately held companies have combined to establish the largest recycler of gold and silver in North America.
The merger of NTR Metals of Dallas and Ohio Precious Metals, of Jackson, Ohio, has formed a company that will produce about 10% of the world's recycled gold, according to Bill LeRoy, president of Ohio Precious Metals.
The combination highlights the growing activity within the so-called secondary market for precious metals. While little noticed, the market has ballooned amid rising metal prices and strong demand from investors.
NTR and Ohio Precious Metal collect scraps and jewelry from electronic manufacturers, dentists and pawn shops, smelter the materials to get the pure metals, and mint them into bullion or coins for banks and other buyers. The sector started to take off in recent years amid record metals prices.
Gold flows from scrap dealers have soared by nearly one-third since 2008, as more people turn their unwanted jewelry into cash. Secondary gold supply was up 0.5% in 2011 to 40.6 million ounces—34% of the world's total supply, according to CPM Group.
Gold prices are up 4.9% this year, closing at $1,642.50 per troy ounce on Monday on Comex. While gold prices have fallen 13% from a record of $1,888.70 on Aug. 22, bullion demand remains "very aggressive," Mr. LeRoy said.
Following the merger, the two companies will continue to operate separately, but under a newly formed parent company called Global Metals Holdings LLC, the companies said.
The combination of NTR and Ohio Precious Metals also is a pre-emptive move against volatile metal prices, the companies said.
While Mr. LeRoy declined to release the combined value of the metals the company handles, he said it is "in the billions of dollars." He wouldn't discuss revenue or other financials.
With operations in the U.S. and Europe, NTR is a major aggregator of raw materials and a bullion dealer, which tends to thrive when gold prices are high.
On the other hand, Ohio Precious Metals specializes in processing scraps into bullion and is less affected by prices.
"It's pretty much hand in glove," said Alan Stockmeister, chief executive of Ohio Precious Metals.
[url]
http://online.wsj.com/article/SB1000142 ... AROLYN+CUI[/url]
By CAROLYN CUI
Capitalizing on booming demand for precious metals, two privately held companies have combined to establish the largest recycler of gold and silver in North America.
The merger of NTR Metals of Dallas and Ohio Precious Metals, of Jackson, Ohio, has formed a company that will produce about 10% of the world's recycled gold, according to Bill LeRoy, president of Ohio Precious Metals.
The combination highlights the growing activity within the so-called secondary market for precious metals. While little noticed, the market has ballooned amid rising metal prices and strong demand from investors.
NTR and Ohio Precious Metal collect scraps and jewelry from electronic manufacturers, dentists and pawn shops, smelter the materials to get the pure metals, and mint them into bullion or coins for banks and other buyers. The sector started to take off in recent years amid record metals prices.
Gold flows from scrap dealers have soared by nearly one-third since 2008, as more people turn their unwanted jewelry into cash. Secondary gold supply was up 0.5% in 2011 to 40.6 million ounces—34% of the world's total supply, according to CPM Group.
Gold prices are up 4.9% this year, closing at $1,642.50 per troy ounce on Monday on Comex. While gold prices have fallen 13% from a record of $1,888.70 on Aug. 22, bullion demand remains "very aggressive," Mr. LeRoy said.
Following the merger, the two companies will continue to operate separately, but under a newly formed parent company called Global Metals Holdings LLC, the companies said.
The combination of NTR and Ohio Precious Metals also is a pre-emptive move against volatile metal prices, the companies said.
While Mr. LeRoy declined to release the combined value of the metals the company handles, he said it is "in the billions of dollars." He wouldn't discuss revenue or other financials.
With operations in the U.S. and Europe, NTR is a major aggregator of raw materials and a bullion dealer, which tends to thrive when gold prices are high.
On the other hand, Ohio Precious Metals specializes in processing scraps into bullion and is less affected by prices.
"It's pretty much hand in glove," said Alan Stockmeister, chief executive of Ohio Precious Metals.
[url]
http://online.wsj.com/article/SB1000142 ... AROLYN+CUI[/url]