The Truth About Extracting Gold from Old Phones: High Costs and Lethal Risks

Deep News
Apr 10

The claim that "one ton of old mobile phones can yield 200 grams of gold, netting a profit of over 100,000 yuan" has been circulating online recently. Some individuals are eager to collect discarded phones for "gold refining," while others worry they might be underselling their used devices.

Investigations conducted in secondhand markets in Beijing, Shenzhen, and discussions with industry experts reveal the reality behind these assertions. A manager from a mobile phone recycling company explained that the idea of extracting 200 grams of gold from one ton of phones is not entirely baseless. Older feature phones produced over a decade ago, which had thicker gold plating on circuit boards for corrosion resistance, could indeed yield close to that amount. However, the situation has changed significantly. With rising gold prices, manufacturers have substantially reduced the thickness of gold plating on circuit boards in recent years. For modern smartphones, the actual amount of gold recoverable from one ton is far less than 200 grams.

Liao Huanle, Chairman of China Resources Recycling Group's Electronic Appliances Company, clarified that the accurate statement should be: one ton of waste mobile phone circuit boards can yield over 200 grams of gold.

Peng Yousheng, President of the Shenzhen Mobile Phone Industry Association, noted that recent interest in "gold extraction" has spurred some consumers to sell their old phones, but there is a significant misunderstanding about the true value of discarded devices. He emphasized that while memory chip prices have risen, whole-device recycling requires professional disassembly and evaluation. Gold extraction is the final step in a complex industrial chain, making it difficult for individual consumers to benefit directly.

Multiple industry insiders pointed out that the precious metal content varies greatly depending on the phone model and production year. Most devices in use today are smartphones, with an average weight of about 150 grams each. Extracting one gram of gold would require more than 200 old phones. Currently, the cost of acquiring one ton of used phones is approximately 200,000 yuan.

A simple calculation shows that, even ignoring the costs of reagents, labor, and environmental compliance in the refining process, an individual spending 200,000 yuan to buy one ton of old phones would face a loss of nearly 150,000 yuan after selling the extracted gold at Shanghai Gold Exchange prices—enough to buy a car.

Some online commentators suggest bypassing large-scale operations, proposing to "just soak a few circuit boards at home to get a few grams of gold to sell." This is where the danger lies. Bloggers promoting "home gold refining" and sellers offering "home refining kits" often encourage people to "seize the opportunity" for profit but fail to warn that such chemical experiments, if mishandled, can be fatal.

An official warning from the "Hebei Ecological Environment Release" social media account highlighted that the strong acids used in amateur refining methods produce highly toxic gases that pose direct health risks to individuals.

Furthermore, illegal disposal of hazardous waste and unauthorized refining of precious metals violate China's Criminal Law and Environmental Protection Law. Offenders face heavy fines, administrative detention, and, in severe cases, criminal prosecution.

If refining gold from phones is so unprofitable, what motivates legitimate businesses in this industry? In reality,正规 electronic waste dismantling companies do not rely solely on "burning phones for gold" for profit. Chairman Liao explained that these enterprises practice tiered recycling: they first reclaim components like screens, cameras, and batteries from old phones. The final step involves smelting circuit boards to recover precious metals using specialized, large-scale technologies. The cost of extracting gold alone far exceeds the revenue.

The rumor about extracting 200 grams of gold from one ton of old phones resurfaces periodically. The ones truly profiting from this myth are the vendors selling "refining tutorials" and "home refining equipment."

Recycling electronic waste is a green industry encouraged by the state, but it is not a get-rich-quick scheme for amateurs. It is a capital-intensive, technology-driven, and heavily regulated sector. President Peng stressed that the industry urgently needs to establish a comprehensive standard system covering collection, disassembly, and precious metal refining to address challenges such as difficult environmental impact assessment approvals and pollution caused by unregulated small workshops.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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