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Thursday, November 01, 2012

Operating with integrity earns KMG Gold Recycling more kudos

October 20, 2012.
Winnipeg Free Press

By Dan Proudley

Michael Gupton buys and sells gold, but the most valued commodity he deals in is trust.

The owner ofKMG Gold Recycling is uncompromising in adhering to a high standard of ethics in an industry where uneducated consumers may not always be getting the best value for their precious metals.

As a result, KMG Gold’s sterling reputation for operating in a fair and honest fashion has once again been recognized by the Manitoba and Northwestern Ontario Chapter of the Better Business Bureau (BBB). The Winnipeg-based precious metal recycler has been named a finalist for its third BBB’s Torch Award. KMG Gold has won the award previously in 2011 and 2010. The Torch Awards are handed out annually to companies and organizations that demonstrate ethical conduct, integrity and excellence in the marketplace. This year’s winners were announced Oct. 18.

But to top things off, KMG Gold Recycling is in the running for yet another honor. The company is also a finalist for the BBB 2012 Green Award for environmentally sustainable practices.

Winning the Torch Award means a lot to Gupton. “I think it’s fantastic. We have done our research when we say we are the only precious metal recycler to win one of these (Torch) awards,” says Gupton. ”This is outstanding. I think it’s marvelous to be singled out as the only one in North America who has been nominated by our customers and to have been recognized by the Better Business Bureau. Our customers are obviously very happy with what we are doing, and that’s exactly what we want.”

For Gupton, a civil engineer and former gold prospector, the strategy he has adopted is certainly yielding results. ”Business is absolutely booming right now,” he says, recalling how one day in late September, people were “literally lined-up out the door.”

When customers walk-in to KMG Gold’s store at 620 Academy Road, their precious metals are weighed and analyzed in front of them by a certified technician, who then clearly explains how the metal is valuated. The entire transaction is transparent.

In some cases the jewelry might be worth more if it’s re-sold rather than melted down for the precious metal content. In instances like this, Gupton will recommend a trustworthy jeweler that he is confident will deal with the customer fairly. “At every step, we try to educate the consumer,” says Gupton. “Trying to be upright and transparent is the way to go. An enlightened and educated consumer is a happy customer.”

The company also has an extensive website, that features constantly updated prices for precious metal and other related information.

While soaring gold prices have spurred business, there is another factor for the shining success of KMG Gold – Gupton claims he offers the best payout prices available. “Our rate for individuals is amongst the highest in the industry,” he says. Retail customers receive 73-90% of the market value price. Dealers and people with larger amounts receive 90-95% of market value.

“Bring in more gold, get more money,” notes Gupton. “Repeat customers and employee affiliate programs (such as Manitoba Hydro) get a VIP 4% bonus.” He says other gold buyers only pay out between 15%-to-55% of the market value.

KMG Gold can offer higher payouts because it operates its own refinery. Scrap precious metal is melted down and the content of precious metals such as gold, silver and platinum are determined. These ingots are then sold to primary refiners such as the Royal Canadian Mint or Johnson Matthey.

By reusing material already mined, the environmental impact of new mines is greatly reduced, says Gupton. “We are actively helping the environment by recycling all this stuff.”

Gupton founded KMG Gold as an internet company in 2007. He and his wife, Karen, ran the business out of their dining room for three years. In their first year, gross sales totaled an impressive $100,000. As the business grew at a phenomenal pace, Gupton opened a retail store on Osborne Street in 2010. That location quickly became too small, so the store moved to 620 Academy Road. Today, KMG Gold sources as much precious metals through its retail outlets, as it does from its internet shipments from all across North America.

In addition to the Winnipeg retail store, KMG Gold has several shipping outlets in British Columbia, Alberta, and California as well as KMG Gold Trusted Gold Buyers in Steinbach and Toronto. KMG Gold Recycling has also just opened its first retail location in the U.S.A., in Grand Forks North Dakota.
Posted by Mike Gupton at 6:41 PM 0 Comments