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You Can Buy and Sell Gold Jewelry for Profit

The price of gold is often in the news—sometimes it's soaring, and other times it's plummeting. When its price is on the rise, many of us wonder if we should sell the gold we possess for a profit. When the price is falling, some of us consider investing in gold to profit down the line when its value rebounds.

The truth is that you can earn a living buying and selling gold, but I don't mean buying from jewelry stores or trading on the stock market. I'm referring to buying gold from the public for resale. In this article, I will walk you through the process of making money on gold and other precious metals.

Although you may think you'll need a lot of capital up-front to start this business, you don't. A gold business can be started with just a few simple tools, which I'll cover in more detail below. Some of these—like a jewelry scale—you may be able to purchase used. Additionally, If you let friends and family know what you're doing, they may give you some jewelry to help you start your business off. If you reinvest any profit you make back into your new business, you can make your money work for you. That way, if someone brings you a piece that you know is a bargain, you'll have the cash to buy it. Now, let's dig into the details.

In This Article

• Terms to Be Familiar With
• Supplies You'll Need to Begin
• Buying Gold
• Selling Gold
• How to Be Professional
• How to Stay Safe

Terms To Be Familiar With

As a buyer and seller of gold, there are a few important terms that will come up in your work repeatedly. It's important to familiarize yourself with their meanings before moving forward.

What Is a Hallmark?

In jewelry, a hallmark is a small stamp or impression used to certify that a piece is composed of a certain quality of a noble metal like gold, silver, or platinum.

What Is a Carat (Karat)?

A carat (karat in the US) is a fractional measure of a gold alloy's purity out of 24. An 18-carat gold ring is 18 out of 24 parts pure gold, or 18 parts gold and 6 parts another metal. In other words, it is about 75% pure gold.

Supplies You'll Need to Begin

Before getting started in the gold business, there are a few essential items you should be equipped with. It's okay to purchase some of these used so long as they are of good quality.

Gold Testing Kit

The first thing you'll need to buy is a gold testing kit. These are reasonably priced and absolutely necessary for your new business. The majority of jewelry pieces you'll be offered won't have a hallmark, and you can't simply guess at the quality of the metal. The acids in the kit will tell you which carat of gold you're dealing with. Two additional acids are also included to test silver and platinum. With this knowledge, you can then give your customers accurate valuations of their jewelry. Your kit should contain different acids to test for 10, 14, 18, and 22-carat gold.

Professional Jewelry Scale

A professional jewelry scale is also a necessity for your new business. Although it may be somewhat costly, it will provide you with years of reliable service. Don't use a kitchen scale, even if only for a short time, as they're not legal for trade. You're running a business, so you need to make it professional. It's a good idea to take readings from your scale at least once a day to ensure accuracy. Keep up-to-date records to avoid any legal problems arising from a customer or regulatory agencies' complaints.

Magnet, File, and Loupe

Because you will be using a magnet every time someone brings you a piece of jewelry, it behooves you to buy a quality one. The same goes for your metal file, which you'll use to scrape away the outer coating of some pieces. Neither of these items is expensive, and both will last for years. You can easily find them at a hardware store or purchase them online. You will also want a magnifier loupe to view the more minor details of the jewelry you inspect.

Buying Gold

Before you can sell gold for profit, you'll have to buy some from the public. Close friends and family may give you a few items to help you get started, but eventually, you'll have to buy all of the gold you wish to sell. Here are a few things to keep in mind about the gold-buying process.

Inspecting Jewelry

When a customer brings you an item, it may have a hallmark that tells you what carat of gold it is. Using your magnifier loupe, check for any hallmarks. Refer to the graphic above to see which hallmarks correspond to which carat ratings and purity levels.

Even if an item has a hallmark, you may still want to do an acid test. After asking the owner's permission:

1. Make a small scratch through the piece's outer layer with your metal file.
2. Begin with your 10k acid from the set above.
3. When you are just starting, practice on your jewelry—this will give you confidence when testing a customer's item while they are watching you.

Hosting Valuation Parties

An excellent way to get clients is to organize a "valuation party when you are starting." You can ask a friend to host the event for you. Serve snacks and light refreshments, tell family and friends to invite their friends, and ask them to bring any gold they wish to have valued. Some guests may take your offers that night, while others can take a business card, go home, think about it, and contact you later.

Gain someone's trust and respect, and you could have a customer for many years to come. You may find that people will be happier to sell to you instead of taking their gold to a pawnbroker or a "cash-for-gold" store. For some, there is a stigma attached to going to a pawnbroker. Offering your potential clients a relaxed, friendly environment will put everyone at ease, and with everyone taking home a business card or leaflet, you will be expanding your client base. Word of mouth is and always has been the best form of advertising.

Buying Gold Teeth

Gold teeth are an unexpected part of buying gold. Some dentists save gold teeth they've pulled for their retirement. If offered these, knock the tooth away from the gold before weighing it. If you feel squeamish about this, use latex gloves or hand wipes when working with the teeth.

Selling Gold

In the gold business, selling is just as important as buying. Keep the following considerations in mind as you begin to sell purchased jewelry, rings, and coins.

Timing When You Sell

Because you will be buying gold or other precious metals below market value, you can sell them quickly for a small profit. However, holding back until the market goes up is a better idea, and then you will see a better return on your money.

Acknowledging the Risk

As with all business ventures, there are always financial risks, as prices fluctuate widely. Do not overextend yourself, and be prepared to wait for an upturn in the market. You don't make your profit when you sell. You make it when you buy.

Considering Alternate Markets

Paying the scrap metal value for jewelry and watches is fine, and you will be able to earn a profit. Before you sell, however, consider web auctions like eBay. Please do some research on a piece before putting it up for sale. If it has an interesting history, you could earn well from it. You may get more for a watch than its scrap metal price if it is a desirable object. If it doesn't sell for more at auction, you can sell it for its metal value. You might also consider selling unique pieces to vendors with market stalls at craft, jewelry, and antique fairs. Seek these people out, as they are often looking for new suppliers.

How to Be Professional

The last thing you want to do in the gold business is come off as amateurish, shady, or unprofessional. Here are a few things to keep in mind when building your business.

Be Confident

If you're self-conscious when interacting with strangers, consider taking a public speaking course; this will help you become more confident when speaking to your customers. Contact your local city college for courses or see if there is a Toastmasters club in your area.

Advertise

It is a good idea to have business cards or leaflets printed stating what you buy (e.g. rings, chains, watches, and coins). Do not include the price you pay per gram or ounce, as this will vary over time as the price of gold fluctuates. Every customer could refer more clients to you, so always leave a business card or two behind for them to share with friends. You should also build a list of people who have a regular supply of gold (e.g., dentists, people who do house clearances, official receivers, and so on).

Be Respectful

The three Ds—death, divorce, and debt—are the main reasons people choose to sell gold jewelry and other items below market value. As sad as it may be for the person selling, this is good news for you. They need to sell, and you want to buy, so it is a win-win situation. Don't ever be judgmental about someone's position; always be professional and respectful.

How to Stay Safe

Buying and selling gold can be a risky business if not done carefully. Avoid getting in trouble or being victimized by taking the following precautions.

Always Ask for ID

It's possible you may be offered stolen jewelry. Ask for ID from all sellers. Either a driver's license or a passport will suffice. Record each seller's name, ID number, and address. If they are honest, they won't mind giving you this information. If you lose someone's business by asking for this information, then you're better off not buying from that person. You do not want to be accused of handling stolen goods.

Keep Accurate Records

Keeping details of all transactions is a good idea. A simple notebook with dates, descriptions, weights of objects purchased, amounts paid, and seller contact details should suffice.

Protect Your Property by Protecting Your Privacy

It is likely that at times, you will be carrying a large sum of cash or valuable gold, so it is important to be aware of the risk of being robbed. Although you may feel safe if you are in a public area, going to your vehicle and returning home could pose a problem. If a potential thief knows you have cash or jewelry in your home, you could be opening yourself up to being burglarized. Do not tell strangers where you live, and be careful discussing what you do until you know a person well. Do not put your address on your business card, a phone number will suffice.

Don't Bring Cash to In-Home Appraisals

Be cautious if you are called to someone's house to give a valuation. Tell them on the phone that you will look at their pieces and give them offers but that you do not carry cash on your person during house calls for security reasons. Most people will understand this, and those who don't are not the type of people you need to be dealing with.

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

Questions & Answers

Question: Where can I get a certificate to open my business?

Answer: You should start at your local chamber of commerce. They will tell you which forms you need to complete.

Question: What licenses do you need to buy and sell gold?

Answer: This article is read by people in many different countries, and so the regulations will be different. Before beginning, you will want to go to your chamber of commerce (or equivalent) and ask what is required. They will be in a better position to advise you and assist you in setting up your business.

Question: You said you need little capital to buy gold, but how does this work? How would I start with little capital?

Answer: Once you have your scale and all the other items I mentioned in the article in place, start asking your friends and family if they want to sell or give you any articles of jewelry. Some people may be happy to help you and others may just want to get rid of it but can't be bothered to get it valued. Any profits you make will be put back into your business.

As with any business, there will be start-up costs, but smart people just keep reinvesting it back into their business. Also, keep your overheads low. Buy, sell, repeat and keep building up your capital. When a bargain comes along, you will then be in a position to act quickly.

Question: What should I look for when selecting a business location?

Answer: Firstly if you are just starting out, the most important thing is to keep your overheads low. Therefore, don't commit yourself to a brick and mortar store. In the article, I mention organizing parties with friends of friends for example. There is very little you have to spend other than perhaps a few bottles of beverages.

Then, once you get more spending capital under your belt, opt for a freestanding pitch in the city center. These temporary pitches are much cheaper than renting a shop. Although you may be outside in winter, think how many people are passing by. If you do this and continue with 'gold buying parties' in the evenings, you may find you don't ever need to pay the rents and rates of a high street store.

Question: When starting a business in gold, could a range like 60% to 75% work better if gold is high 60% if gold is low 75%?

Answer: I would suggest you think of this as any other item that is for sale. Let's use a car or a house as an example. You buy at a price that you can make a profit and that the customer is willing to sell at. You determine what price you can sell an item accordingly.

Question: How can I determine the karat value of a gold item?

Answer: In the article it explains about scratching a small section and doing an acid test. That will tell you the karat of the gold. The price you pay will fluctuate depending on the market value at the time.

Question: My question is how to set a daily base gold purchase and sell price?

Answer: That will be down to you. No matter what you purchase, be it a car, house etc. There is a price the seller will accept and a price you will pay based on how much you think you can get back when you sell. There are guidelines for cars, houses and gold but there is always someone needing to sell. That is where you will earn the most money.

Question: Whats a standard percentage to offer for a piece of gold relative to spot price?

Answer: There is no standard price. You are an independent businessman. You will set the price how you see fit. The customer will either sell to you or not. When you then sell it, you will decide what you are willing to accept for it.

Question: With how much gold can I start my business buying and selling gold?

Answer: You can start with very little as I've explained in the article. Ask friends and family if they have any unwanted jewelry. Then begin slowly. Any money you make, reinvest it into your business. There are people who could start with $10k and never make anything. There are others who start with one ring and work hard at their business. If you have a mindset that you will succeed, you'll find a way.

I would encourage you to read a book called The $100 start up. It will help you see opportunities.

Question: Concerning starting your own business, you said you don’t make your profit when you sell, you make it when you buy. Can you explain that for me?

Answer: Before you go into any business transaction where you plan to make a profit from it, you need to be aware of your exit strategy. Anyone can buy gold but to earn a profit from it, you need to be purchasing at a price that will allow you to earn a profit. You've heard the saying, 'buy low and sell high'.

That is the best case scenario, but you can also buy low, sell at a profit and repeat. There are people who will sit on a purchase and hope it increases over the years. There are also people who buy low, sell quickly, and make another purchase.

Question: Where can I find a paid course for buying and selling gold? I'm planning to open a gold buying business, and need to have a mentor. I need a class on where to sell the gold for the highest amount and maybe being able to learn how to melt gold.

Answer: I am not aware of courses in this field. Check with your local college or online academies to see if there are courses offered. I would suggest you begin your journey reading about the process before employing the services of a mentor.

https://www.amazon.com/How-Refine-Precious-Metals-...

Question: For a complete beginner, who actually possess very limited knowledge in this field, what would you recommend that person can do to get a basic understanding in this field?

Answer: First, educate yourself by reading about the subject. However, don't get stuck into thinking you have to know everything to begin, you don't.

Start with friends and family who are supportive. Ask them if they know people who would like to help you by coming to a gold valuation party. Take business cards, as I've explained in the article. The plus side of doing it this way, is you'll be in a supportive environment and gain confidence. No one expects you to be perfect if you're just starting out.

Another option is, to get a temporary job at a place that buys and sells. There you'll be dealing with the public but with the guidance of others. Then, when you know the business, step out on your own.

Question: How much can I use to start this business?

Answer: Just start where you are today. If you start small, you will build your business up over time. It will make you appreciate what it takes to earn money. That isn't always easy and it will make you more careful with your money and what you choose to buy.

Question: Do I have to be registered to buy and sell gold?

Answer: That will depend on where you live. Check with your local chamber of commerce to see what permissions and licenses you may need.

© 2011 Mary Wickison

Is This the Business for You?

Faik Mammadov on May 10, 2020:

super. thanks

Mary Wickison (author) from Brazil on March 21, 2020:

Read as much as possible both online and offline for the best practices. Start small and keep reinvesting in your business.

Evans Kholisani Zulu from Njube, Bulawayo, Zimbabwe on March 21, 2020:

I love this. I really want to invest in this! I would love to be guided from A-Z until successful. Is it possible?

Lukasz from Warsaw on February 08, 2020:

Thanks for your valuable knowledge.

Doug West from Missouri on December 23, 2018:

Buying and selling gold can be profitable, I have done it for decades. A word of caution, the improper marking of gold, in other words, it is a lower purity than it is marked is extremely extremely common. Before you start spending big money on scrap gold jewelry, do some experimentation with known pieces to get your testing skills up into good shape.You would be surprised how much off quality gold jewelry (it doesn't test the marked purity) is sold by high-end jewelry stores. Buying and selling gold is just like any other business, if you learn the ropes you can succeed - good luck and do you homework.

Mary Wickison (author) from Brazil on April 20, 2018:

Thanks, James,

You're right both Craigslist and eBay can offer some great deals.

Thanks for your contribution.

james parkhurst on April 20, 2018:

I can say is a great article on this business...I've been buying and selling gold for 6 years now albeit with parental assistance in the beginning (I was dealing with silver 2 years before that and copper 2 years earlier still)

my best buy was a white gold Rolex president for £3,000 that I flipped for £5,000 (it was very beaten up)...I'd say the only thing that isn't covered is the potential to scope out deals online as I have bought from Craigslist and even eBay to find good deals

Mary Wickison (author) from Brazil on December 06, 2016:

A good rule of thumb is what you and your customer are happy with. It is likely your customer will know the current prize of gold and will think they should get that price. You will need to check the price and then allow yourself your profit margin. The price can fluctuate greatly and it will be your decision to buy or sell and at what price.

Scott on September 16, 2016:

Is there a good rule of thumb on what to pay for metals in order to make a profit?

Mary Wickison (author) from Brazil on August 02, 2016:

This would depend where you live. I would suggest you start with your local Chamber of Commerce or the equivalent in your country.

Mariya on June 08, 2016:

What kind of documents or certificates I need if I want ti sell gold and silver online?

Thank you!

Nicole Young 07 from Chicago Illinois on April 21, 2016:

You are welcome Blond logic, I just want people to be totally observant in attending gold parties because they usually weighed together all jewelry, regardless of the individual karat, and then you will be paid based on the the lowest karat value so it may make sense if you separate your pieces of jewelry according to karat. But I totally agree with you, honesty is the best policy, be it in business, situation or personal matters. What you reap is what you sow.

Mary Wickison (author) from Brazil on April 21, 2016:

Hi Nicole,

Yes, that is good advice. Regarding the gold parties, from a business point of view, these are still a good way to buy gold. Remember this post is how to set up a business.

The scales should be checked often, I would suggest every day and the data recorded. It is best to avoid all possible comebacks and the best way to do it, is to be honest and straightforward. Good record keeping is a necessary part of all businesses, this one included.

I agree with you that much of the advertising is misleading but that is why the market is ready for someone who is honest. Plus, this will lead to positive word of mouth advertising which is always the best kind.

Thank you for reading and your insightful comment.

Nicole Young 07 from Chicago Illinois on April 20, 2016:

Gold is a good investment and if you plan on having a buy and sell business, here are few tips in selling gold which I learned from David Goldstein of Biltmore loan and jewerly, for the last 20 years, the price of gold is at its highest during the month of September, so you may want to consider selling gold during this month. In addition, be wary of rogue buyers and advertisements that are too good to be true, avoid gold parties if you want the best value of your gold because scales used in gold parties are not verified periodically by the US Department of Weights and Measures and make sure to always check the price of gold.

Mary Wickison (author) from Brazil on November 22, 2011:

Thank you,

It actually requires a small amount of start up capital, because after your first deal, it can be self funding.

Thanks for stopping by.

nenytridiana from Probolinggo - Jawa Timur - Indonesia on November 21, 2011:

It is great! I think it is a good business and of course required a large capital. Good work blond logic!

Investors can invest in gold through exchange-traded funds (ETFs), buying stock in gold miners and associated companies, and buying a physical product. These investors have as many reasons for investing in the metal as they do methods to make those investments.

Some argue that gold is a barbaric relic that no longer holds the monetary qualities of the past. In a modern economic environment, paper currency is the money of choice. They contend that gold's only benefit is the fact that it is a material that is used in jewelry. On the other end of the spectrum are those that assert gold is an asset with various intrinsic qualities that make it unique and necessary for investors to hold in their portfolios.

A Brief History of Gold

In order to fully understand the purpose of gold, one must look back to the start of the gold market. Gold's history in society began well before even the ancient Egyptians, who started forming jewelry and religious artifacts. Yet, it wasn't until around 560 B.C. that gold started to act as a currency. At that time, merchants wanted to create a standardized and easily transferable form of money that would simplify trade. The creation of a gold coin stamped with a seal seemed to be the answer, as gold jewelry was already widely accepted and recognized throughout various corners of the earth.

Following the advent of gold as money, its importance continued to grow throughout Europe and the U.K., with relics from the Greek and Roman empires prominently displayed in museums around the world, and Great Britain developing its own metals-based currency in 775. The British pound (symbolizing a pound of sterling silver), shillings, and pence were all based on the amount of gold (or silver) that it represented. Eventually, gold symbolized wealth throughout Europe, Asia, Africa, and the Americas.

The U.S. Bimetallic Standard

The U.S. government continued on with this gold tradition by establishing a bimetallic standard in 1792. The bimetallic standard simply stated that every monetary unit in the U.S. had to be backed by either gold or silver. For example, one U.S. dollar was the equivalent of 24.75 grains of gold. In other words, the coins that were used as money simply represented the gold (or silver) that was presently deposited at the bank.

But this gold standard did not last forever. During the 1900s, there were several key events that eventually led to the transition of gold out of the monetary system. In 1913, the Federal Reserve was created and started issuing promissory notes (the present-day version of our paper money) that could be redeemed in gold on demand. The Gold Reserve Act of 1934 gave the U.S. government title to all the gold coins in circulation and put an end to the minting of any new gold coins. In short, this act began establishing the idea that gold or gold coins were no longer necessary in serving as money. The U.S. abandoned the gold standard in 1971 when its currency ceased to be backed by gold.

Gold in the Modern Economy

Even though gold no longer backs the U.S. dollar (or other worldwide currencies for that matter), it still carries importance in today's society. It is still important to the global economy. To validate this point, there is no need to look further than the balance sheets of central banks and other financial organizations, such as the International Monetary Fund. Presently, these organizations are responsible for holding almost one-fifth of the world's supply of above-ground gold. In addition, several central banks have added to their present gold reserves, reflecting concerns about the long-term global economy.

Gold Preserves Wealth

The reasons for gold's importance in the modern economy center on the fact that it has successfully preserved wealth throughout thousands of generations. The same, however, cannot be said about paper-denominated currencies. To put things into perspective, consider the following example:

In the early 1970s, one ounce of gold equaled $35. Let's say that at that time, you had a choice of either holding an ounce of gold or simply keeping the $35. They would both buy you the same things, like a brand new business suit or a fancy bicycle. However, if you had an ounce of gold today and converted it for today's prices, it would still be enough to buy a brand new suit, but the same cannot be said for the $35. In short, you would have lost a substantial amount of your wealth if you decided to hold the $35 as opposed to the one ounce of gold because the value of gold has increased, while the value of a dollar has been eroded by inflation.

Gold As a Hedge Against the Dollar

The idea that gold preserves wealth is even more important in an economic environment where investors are faced with a declining U.S. dollar and rising inflation. Historically, gold has served as a hedge against both of these scenarios. With rising inflation, gold typically appreciates. When investors realize that their money is losing value, they will start positioning their investments in a hard asset that has traditionally maintained its value. The 1970s present a prime example of rising gold prices in the midst of rising inflation.

The reason gold benefits from a declining U.S. dollar is because gold is priced in U.S. dollars globally. There are two reasons for this relationship. First, investors who are looking at buying gold (i.e., central banks) must sell their U.S. dollars to make this transaction. This ultimately drives the U.S. dollar lower as global investors seek to diversify out of the dollar. The second reason has to do with the fact that a weakening dollar makes gold cheaper for investors who hold other currencies. This results in greater demand from investors who hold currencies that have appreciated relative to the U.S. dollar.

Gold as a Safe Haven

Whether it is the tensions in Eastern Europe, the Middle East, Africa, or elsewhere, it is becoming increasingly obvious that political and economic uncertainty is another reality of our modern economic environment. For this reason, investors typically look at gold as a safe haven during times of political and economic uncertainty. History is full of collapsing empires, political coups, and the collapse of currencies. During such times, investors who held gold were able to successfully protect their wealth and, in some cases, even use the commodity to escape from all of the turmoil. Consequently, whenever there are news events that hint at some type of global economic uncertainty, investors will often buy gold as a safe haven.

Gold as a Diversifying Investment

In general, gold is seen as a diversifying investment. It is clear that gold has historically served as an investment that can add a diversifying component to your portfolio, regardless of whether you are worried about inflation, a declining U.S. dollar, or even protecting your wealth. If your focus is simply diversification, gold is not correlated to stocks, bonds, and real estate.

Gold as a Dividend-Paying Asset

Gold stocks are typically more appealing to growth investors than to income investors. Gold stocks generally rise and fall with the price of gold, but there are well-managed mining companies that are profitable even when the price of gold is down. Increases in the price of gold are often magnified in gold-stock prices. A relatively small increase in the price of gold can lead to significant gains in the best gold stocks and owners of gold stocks typically obtain a much higher return on investment (ROI) than owners of physical gold.

Even those investors focused primarily on growth rather than steady income can benefit from choosing gold stocks that demonstrate historically strong dividend performance. Stocks that pay dividends tend to show higher gains when the sector is rising and fare better – on average, nearly twice as well – than non-dividend-paying stocks when the overall sector is in a downturn.

The Gold Mining Sector

The mining sector, which includes companies that extract gold, can experience high volatility. When evaluating the dividend performance of gold stocks, consider the company's performance over time in regard to dividends. Factors such as the company's history of paying dividends and the sustainability of its dividend payout ratio are two key elements to examine in the company's balance sheet and other financial statements.

A company's ability to sustain healthy dividend payouts is greatly enhanced if it has consistently low debt levels and strong cash flows, and the historical trend of the company's performance shows steadily improving debt and cash flow figures. Since any company goes through growth and expansion cycles when it takes on more debt and has a lower cash on hand balance, it's imperative to analyze its long-term figures rather than a shorter financial picture timeframe.

Different Ways of Owning Gold

One of the main differences between investing in gold several hundred years ago and today is that there are many more investment options, such as:

• Gold Futures
• Gold Coins
• Gold Companies
• Gold ETFs
• Gold Mutual Funds
• Gold Bullion
• Gold Jewelry

A Bad Time to Invest in Gold?

In order to ascertain the investment merits of gold, let's check its performance against that of the S&P 500 for the past year (as of March 2022). Gold has outperformed compared to the S&P 500 over this period, with the S&P index generating about 10.4% in total returns compared to gold, which returned 18.9% over the same period.

That said, the period of time that we look at is incredibly important. Looking at longer or shorter timeframes will variously see gold or the broader market outperform, sometimes by a wide margin.

The point here is that gold is not always a good investment. The best time to invest in almost any asset is when there is negative sentiment and the asset is inexpensive, providing substantial upside potential when it returns to favor, as indicated above.

The Bottom Line

There are both advantages and disadvantages to every investment. If you are opposed to holding physical gold, buying shares in a gold mining company may be a safer alternative. If you believe gold could be a safe bet against inflation, investing in coins, bullion, or jewelry are paths that you can take to gold-based prosperity. Lastly, if your primary interest is in using leverage to profit from rising gold prices, the futures market might be your answer, but note that there is a fair amount of risk associated with any leverage-based holdings.

Investors looking to enjoy the touch, feel, and security of owning gold may wish to buy gold bars instead of intangible investments such as gold exchange-traded funds (ETFs). Physical, investment-grade gold, also referred to as gold bullion, can be purchased at spot price, which is the price of unfabricated gold plus additional costs, which vary depending on the seller. Physical gold can be liquidated in the unlikely event of a total economic collapse.

The Gold-Buying Process

Buying physical gold bars online is a fairly simple process. One common way to purchase gold bars is through licensed retailers online. Browse gold bar products on reputable retail websites such as the American Precious Metals Exchange (APMEX), JM Bullion, and Wholesale Coins Direct. Select the gold bars you wish to buy by weight, quantity, and price.

Online gold retailers typically give discounts to customers who buy larger quantities. Certain retailers give discounts for purchasing by credit card, while others do so for wire transfers, so be sure to choose the most cost-effective payment option. When you receive the gold bars, keep them in their packaging to prevent scratches and store them in a home safe or safety deposit box at your bank. Note that you will likely be responsible for paying for delivery fees and insurance.

You can also bid on gold bars on eBay and similar auction sites. When shopping for gold on the auction website, it is important to review the seller's feedback. Avoid buying from sellers with documented negative feedback on authenticity, exorbitant shipping and handling fees, and failure to deliver.

Gold-to-go ATMs are available if you wish to buy gold bars in cities such as Las Vegas and Dubai. Consumers are advised to be especially aware of the spot price of gold because such ATMs sell the precious metal well above this price and above the prices of most other retailers.

Buy Pure Gold Only

Investment-quality gold bars should be at least 99.5% (995) pure gold. The rest is an alloy, usually silver or copper, that makes smelting possible. People who purchase gold bullion as an investment should only buy a bar that features the name of its manufacturer, its weight, and its purity, usually expressed as 99.99% stamped on its face. Popular mints that produce gold bars include the Royal Canadian Mint, Perth Mint, and Valcambi.

Know the Difference Between Bars and Coins

Though all forms of pure gold have significant monetary value, not all investment-quality gold is equal. From an investment perspective, investors who want to add the physical product that tracks the price of gold may wish to avoid gold coins. These coins often feature attractive designs, have historic value, and contain a lower quantity of gold but still cost more due to their numismatic value.

In addition to costing more, gold coins sometimes skew the value of an investor’s portfolio. For example, the highly regarded American Eagle coin produced by the U.S. Mint contains 91.67% gold but costs more than plain gold bars because of its value as a collector’s piece. Some investors may want collector's items, while others may want plain gold bars, which typically are the easiest to hold long term and convert to cash. For this reason, plain gold bars tend to be a popular choice among investors seeking gold as a safe haven investment.

Buy Gold in Workable Sizes

Gold bar buyers should consider the ease with which they can liquidate the bars as part of the buying process.

For example, if gold is selling at $1,400 per ounce and an investor has $14,000 with which to buy gold bullion, they will usually have an easier time selling the gold down the road if they buy 10 bars that weigh 1 ounce, rather than one 10-ounce bar. They can sell the 1-ounce bars one at a time as needed, while they might have a harder time finding a buyer for the 10-ounce bar if they need to sell quickly. Conversely, considering the tiny size of -gram gold bars, investors sometimes save up to buy bars of a more substantial size.

Aside from bars and coins, it is also possible to buy physical gold in the form of jewelry. Generally, gold jewelry tends to be sold at a significant price markup because of craftsmanship and retailer costs. For this reason, jewelry is not commonly seen as a strong method of investing in gold.

Shop Around

Investors should be aware of gold's spot price when browsing the bullion market. Finance websites that display stock tickers usually display the daily price of gold.

Gold is fairly easy to buy, but prices vary greatly as sellers include their desired profit margin plus additional costs such as authentication certificates, shipping and handling, and payment processing fees. A price comparison including the different sellers' charges is key to getting the best price on gold bars.

Avoid Rip-Offs

Gold bar buyers should review websites such as the Better Business Bureau and Ripoff Report to learn more about a gold seller’s reputation. In general, reputable gold sellers must disclose all the fees required to close a transaction upfront.

Buyers in the U.S. should also do their due diligence before buying gold from sellers abroad. Even when the gold bars are authentic, seller charges may be exorbitant, and buyers might face issues clearing the gold through customs, depending on the quantity purchased.

Investors should be aware that gold as a commodity tends to perform well during economic recessions. During periods of economic turmoil, a larger number of investors may be inclined to look to gold as an investment opportunity. These are periods in which potential gold scammers may be most active as well.

Consider Alternatives

Investors looking to benefit from a gold investment may also wish to consider indirect access to gold through investments in gold mining stocks, gold-focused ETFs or mutual funds, or gold futures contracts. Each of these investments may be tied to the broader performance of gold, but provides a way of diversifying a portfolio beyond physical bullion.

Investments in other types of precious metal bullion, such as silver, provide another means of diversification beyond gold bars.

The Bottom Line

Physical gold ownership involves a number of unique costs, including storage and insurance costs, and the transaction fees and markups associated with buying and selling the commodity. There can also be processing fees and small lot fees for investors making smaller purchases.

Though these costs may not significantly affect someone looking to invest a small portion of their portfolio in gold, they may become prohibitive for investors seeking to gain larger exposure.

Do you want to become a gold coin dealer? Do you want to make money buying and selling gold coins from home? If YES, here are 7 easy steps to buy and sell gold coins online for profit. If you have some spare cash, rather than leave it to lie fallow in your bank account, you can invest it into buying and selling of gold coins online. This is a very lucrative business, especially since gold coins have better liquidity than bars.

Just like any other kind of investment, make money buy and sell gold, trading in gold coins requires research and education. In this article, which is a brief guide, make money buy and sell gold, you will learn the basics of gold coin trading; from the point of buying your gold to the point of selling them. So without wasting your time, the following are guidelines that you must follow before investing in gold coins:

7 Easy Steps to Make Money Buying and Selling Gold Coins Online

1. Take your time to compare prices

Don’t be surprised that you will see the same coins going for various prices in different markets.

2. If you are buying rare coins (otherwise called numismastic coins), try to research the historical value of each coin to determine if it has been a solid long term investment. Keep in mind, however, that a history of good performance doesn’t guarantee good performance in the future.

3. Before buying any make money buy and sell gold, consider the resale market. While rare coins are usually highly valued, you may find it very hard to sell them.

4. Because commissions are typically higher for numismatic coins, many coin dealers attempt to force them down the throat of industry newcomers. Don’t fall for this gimmick. Only buy numismatic coins if you have full understanding of what you are purchasing.

5. Before investing, consider the current prices of gold, make money buy and sell gold, but don’t let substantial swings (up or down) influence your decisions. Human nature is to buy when prices are going up and sell when prices are going down. To remove emotion from your decisions, take a dollar cost averaging approach, as this will likely result in more successful outcomes in the long term.

6. Connect with a local coin dealer in order to learn more about the gold coin market. Aside being ready to answer your most provocative questions, coin dealers with whom you have established a relationship will provide you with discounted prices and early access to new inventory. They will also typically offer you a premium over their standard buying rates when the time comes to sell your how to invest in us stock market from abroad to identify Counterfeit Gold Coins

Due to the current high prices of gold, producers of counterfeit gold coins have entered the market in large numbers with coins made of relatively worthless metals, such as copper and tungsten. To avoid the expensive mistake of buying counterfeit gold coins, start by researching the coin dealer you plan to buy gold coins from. Other tips to avoid this mistake are as follows:

• Invest how much money have you made bitcoin mining a reliable scale.

Purchase a weighing scale that measures tenths, if not hundredths of a gram, make money buy and sell gold. Specified weights for all types of gold coins can be found online. Weigh any gold coin and compare its weight with the specified weight. Any difference should raise your scam detector.

A caliper measures the length, breadth, and thickness of an item. Calipers are more accurate than rulers and tape measures. Gold cytonn investments money market fund are produced in line with strict dimension specifications. Measure any gold coin you plan to buy, and compare its dimensions with the standard.

Gold is not magnetic. So, use a magnet to test the authenticity of any coin before you buy it. If a magnet attracts it, it’s not gold.

3 Best Places to Buy Gold Coins

Aside buying from individual dealers, there are other sources where you can buy high quality gold coins at cheap prices. Examples include the following:

• The government: government-issued coins usually come with a reliable guarantee of gold content, weight, and purity. The U.S. government sells gold coins online. Find out more about how to buy from them.
• Online auction sites: Examples include Ebay.com. Most sellers are cash-strapped and are willing to sell for cheap prices.
• Public: If you want to buy coins at rates that fall well below market value, make money buy and sell gold, like the dealers do, learn how to buy coins from the public.

How to Sell your Gold Coins

Sell your gold when the price is at all time high, when the demand is high, when the sentiment is generally bullish, and when you are sitting on a sizable profit.

In conclusion, you must keep in mind that this article is not meant to give all the information you need to get started. Consult other online old school runescape money making guide p2p as well as experts in gold coin trading to learn more make money buy and sell gold the technicalities of the business before you take a plunge.

Ajaero Tony Martins

Ajaero Tony Martins is an Entrepreneur, Real Estate Developer and Investor; with a passion for sharing his knowledge with budding entrepreneurs.

He is the Founder of Profitable Venture Magazine Ltd, an Executive Producer @JanellaTV and also doubles as the CEO, POJAS Properties Ltd.

Latest posts by Ajaero Tony Martins (see all)

Gold is one of the oldest and most trusted stores of value we have. Individuals, institutional investors and banks hold gold bullion as an investment, or a hedge against currency fluctuations and uncertainty.

Gold bullion means gold of high purity (usually 99.5% pure or higher), often in the form of minted gold bars or coins. Gold bullion is the most popular type of gold to hold as an investment or store of value, as it’s generally easy to sell, and maintains its value well.

When we’re talking about selling gold, you can also get a good amount of money by selling gold wedding bands, engagement rings and other types of jewelry. These forms of gold don’t maintain their value as well as bullion, though. So if you’re keeping physical gold as savings or for investment purposes, it’s best to hold it in bars or coins.

Gold prices reached record highs in 2020, making it a great time to get a good sum for your holdings. The current spot price for gold (as of the 11th of November 2020) is $60.09 per gram, $60,089 per kilo, or $1,868.98 per ounce. Overall, prices in 2020 have skyrocketed, reaching $2,036 per ounce at the highest point.

As with any transaction, it’s important to follow best practices to make sure you get the best value. By knowing what you have and what it’s worth, as well as selling to a reliable gold buyer, you’ll go a long way to getting a fair price for your gold.

Tips to Get the Maximum Cash for your Gold Bullion

Selling gold bullion is a major transaction, thus there can be significant implications for your return if you don’t follow best practices. Bullion is used for monetary purposes, either as an investment or a store of value, so it stands to reason that you’ll want to get the best price when it’s time to sell.

Here are some tips to maximize the price you get for selling your gold bullion.

Know the current value of gold

Gold is a commodity, which means it has a market value that is constantly fluctuating. Any sales of gold bullion are based on the current gold spot price, which is the current price of gold in the market, at the time of the sale.

Before selling your gold bullion, it’s vital to know the spot price, so you have a general idea of what your gold is worth at the time. Incorrect or outdated prices can have a significant negative impact on your sale.

When looking at the market price, understand two things. First, the spot price of gold refers to 99.99% pure, 24K gold. While this is not as big a consideration when selling gold bullion as it is if you were selling gold jewelry (as gold bullion is almost always “pure” gold). If your gold is a lower karatage, the price you’ll get will be lower too.

Second, you usually won’t get the exact spot price for your gold, make money buy and sell gold, especially if you’re selling low quantities. Gold merchants generally tack on a small commission, which is taken out from the spot price. This makes the transaction economical for the merchant. There may be a bigger fee when selling gold jewelry or scrap metal, which needs to be melted down and refined, but with gold bullion such as coins and bars, the price offered should be fairly close to the spot price.

Understand what you have and its value

Once you know the spot price of gold, you’ll be able to make a rough assessment of what make money buy and sell gold gold is worth before you look to sell. 

The value of gold bullion is very transparent, so by knowing what kind of gold you have on hand and weighing it yourself, you’ll have a good idea of what it’s worth on the market.

Weighing can be done with a regular kitchen scale. Once you have the weight, use the gold price calculator below this paragraph to get an estimate of what your gold is worth at the time.

The weight x value equation is best for gold bars. If you’re selling officially minted gold coins, you can check the current price of your coins on sites like Monex, Money Metals Exchange or JM Bullion. These coins, such as the American Buffalo, Canadian Maple Leaf and Austrian Philharmonic Gold Coins, are usually sold per unit. To find the value of your gold coins, simply find the current price of the type of coin you have and multiply by how many you have.

Again, take into account there will be a small difference between the buying and selling price of gold bullion coins. Coin buyers won’t pay the same price to buy coins as to sell them, however, it should be fairly close.

Find a merchant that specializes in gold bullion

Many businesses that offer cash for gold do it to resell your gold at a markup, meaning the price they offer to buy your gold for will be a lot less. These stores, such as pawn shops that operate on a buying and selling model, need to offer less than what your gold is worth in order to make a profit.

Gold bullion is held as an investment, as the price of gold will almost certainly rise over time. So, when you sell gold bars or gold coins, you’re selling close to the market price, as the buyer can expect to profit just by holding on to the gold for a length of time.

That’s why you should always sell gold bullion to a buyer that specializes in gold bars and coins, rather than a retail store that most likely won’t offer fair value for your bullion.

Sell to a trusted gold buyer

Finally, ensure you sell your gold bullion at the right explain the difference between short-term and long-term investments. cite examples of each. You’re most likely to get the best prices selling online, make money buy and sell gold, as these merchants have lower overhead and can thus offer better prices.

You may also be able to find local bullion dealers investing money in bonds uk your area, in which case these dealers can also be a good option. Just be sure to thoroughly research the dealer beforehand, to ensure they are reliable and trustworthy. It’s also a good idea to get a quote or approximation of your gold bullion’s value before you go in.

Whatever you do, try to stay away from local jewelers or pawn shops. While these stores can offer cash for gold fast, they won’t give you good prices, particularly for investment gold such as gold bars and coins, which should be sold quite close to the market value.

Best Places to Sell Your Gold Bullion for Cash

There are more than enough reputable places to cash out your gold bullion without needing to resort to a pawn shop. Here are the best ways to sell gold bars or coins.

Abe Mor

Abe Mor, a dealer situated in New York City, has a gold buying program that allows you to easily sell your gold bullion online. You can check what your gold bullion is worth with their gold price calculator, and then fill out a simple form to get a quote on your gold. If you accept the offer made, you’ll be paid out within one business day, which is great if you need fast access to cash for your gold.

If you decide to sell with Abe Mor, they’ll give you free and fully insured shipping make money buy and sell gold FedEx or US mail, making it easy to send in make money buy and sell gold gold bars or coins to be examined in person. The process is extremely easy, giving you the peace of mind that is so important with a large transaction like this.

What’s more, we’ve found Abe Mor gives better prices than many other places that buy gold bullion, online or in person. If you’re looking to sell your gold bullion, you can be confident Abe Mor will give you a fair market price for your bars or coins. You can also contact them for a quote if you have other types of gold you wish to turn into cash, such as jewelry or scrap gold.

Local bullion dealers

If you prefer to make money buy and sell gold your gold in person, you can look for a gold bullion dealer near you. There are usually dealers located in most major cities, so if you’re in or near one of these areas, do a search for “sell gold bars near me” to find one.

Some people may be more comfortable selling to a local dealer, however, be sure that the dealer you choose is a trustworthy one. Many unscrupulous dealers may use the in-person transaction to pressure you or mislead you into selling your bullion for a low price. Check reviews and recommendations before heading in, and get an approximation of what your gold is worth before going in.

Online bullion dealers

Generally speaking, you’re most likely to get the best value for your gold from an online dealer. These merchants have less overhead and a more economical business than a local store, meaning they can offer better prices with lower fees.

While Abe Mor is the best store that buys gold online we’ve personally reviewed, there are many more reputable online gold buyers. You can find a number of dealers by searching for things like “sell gold bullion”, “sell make money buy and sell gold bars” or “sell gold coins”.

Like if you were selling in person, be sure to perform due diligence on any store you’re considering selling to, to ensure they are trustworthy before you engage in a transaction.

How to Sell Gold Bars and Coins: In Summary

If you’ve been sitting on your gold bullion waiting for the right price, now is a great time to sell, with the price of gold reaching the highest levels for several years. Our top recommendation for selling gold bars or coins is Abe Mor, who offer the best customer experience and value for your bullion. Selling with a reputable online dealer like Abe Mor is the best way to get close to market value, and turn your gold bullion into cash without any undue hassle.

Wherever you sell your gold bars make money buy and sell gold coins, be patient and follow the best practices outlined above. Doing so and knowing the value of your gold will help you make a prudent decision when it’s time to sell.

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I meet with business owners both locally and internationally and share what I learn to help readers generate more income.

You Can Buy and Sell Gold Jewelry for Profit

The price of gold is often in the news—sometimes it's soaring, and other times it's plummeting. When its price is on the rise, many of make money buy and sell gold wonder if we should sell the gold we possess for a profit. When the price is falling, some of us consider investing in gold to profit down the line when its value rebounds.

The truth is that you can earn a living buying and selling gold, but I don't mean buying from jewelry stores or trading on the stock market. I'm referring to buying gold from the public for resale. In this article, I will walk you through the process make money buy and sell gold making money on gold and other precious metals.

Although you may think you'll need a lot of capital up-front to start this business, you don't. A gold business can be started with just a few simple tools, which I'll cover in more detail below. Some of these—like a jewelry scale—you may be able to purchase used. Additionally, If you let friends and family know what you're doing, they may give you some jewelry to help you start your business off. If you reinvest any profit you make back into your new business, you can make your money work for you. That way, if someone brings you a piece that you know is a bargain, you'll have the cash to buy it. Now, let's dig into the details.

In This Article

• Terms to Be Familiar With
• Supplies You'll Need to Begin
• Buying Gold
• Selling Gold
• How to Be Professional
• How to Stay Safe

Terms To Be Familiar With

As a buyer and seller of gold, there are a few important terms that will come up in your work repeatedly. It's important to familiarize yourself with their meanings before moving forward.

What Is a Hallmark?

In jewelry, a hallmark is a small stamp or impression used to certify that a piece is composed of a certain quality of a noble metal like gold, silver, or platinum.

What Is a Carat (Karat)?

A carat (karat in the US) is a fractional measure of a gold alloy's purity out of 24. An 18-carat gold ring is 18 out of 24 parts pure gold, or 18 parts gold and 6 parts another metal, make money buy and sell gold. In other words, it is about 75% pure gold.

Supplies You'll Need to Begin

Before getting started in the gold business, there are a few essential items you should be equipped with. It's okay to purchase some of these used so long as they are of good quality.

Gold Testing Kit

The first thing you'll need to buy is a gold testing kit. These are reasonably priced and absolutely necessary for your new business. The majority of jewelry pieces you'll be offered won't have a hallmark, and you can't simply guess at the quality of the metal. The acids in the kit will tell you which carat of gold you're dealing with. Two additional acids are also included to test silver and platinum. With this knowledge, you can then give your customers accurate valuations of their jewelry. Your kit should contain different acids to test for 10, 14, 18, and 22-carat gold.

Professional Jewelry Scale

A professional jewelry scale is also a necessity for your new business. Although it may be somewhat costly, it will provide you with years of reliable service. Don't use a kitchen scale, even if only for a short time, as they're not legal for trade. You're running a business, so you need to make it professional. It's a good idea to take readings from your scale at least once a day to ensure accuracy. Keep up-to-date records to avoid any legal problems arising from a customer or regulatory agencies' complaints.

Magnet, File, and Loupe

Because you will be using a magnet every time someone brings you a piece of jewelry, it behooves you to buy a quality one. The same goes for your metal file, which you'll use to scrape away the outer coating of some pieces. Neither of these items is expensive, and both will last for years. You can easily find them at a hardware store or purchase them online. You will also want a magnifier loupe to view the more minor details of the jewelry you inspect.

Buying Gold

Before you can sell gold for profit, you'll have to buy some from the public. Close friends and family may give you a few items to help you get started, but eventually, make money buy and sell gold, you'll have to buy all of the gold you wish to sell. Here are a few things to keep in mind about the gold-buying process.

Inspecting Jewelry

When a customer brings you an item, it may have a hallmark that tells you what carat of gold it is. Using your make money buy and sell gold loupe, check for any hallmarks. Refer to the graphic above to see which hallmarks correspond to which carat ratings and purity levels.

Even if an item has a hallmark, you may still want to do an acid test. After asking the owner's permission:

1. Make a small scratch through the piece's outer layer with your metal file.
2. Begin with your 10k acid from the set above.
3. When you are just starting, practice on your jewelry—this will give you confidence when testing a customer's item while they are watching you.

Hosting Valuation Parties

An excellent way to get clients is to organize a "valuation party when you are starting." You can ask a friend to host the event for you. Serve snacks and light refreshments, tell family and friends to invite their friends, make money buy and sell gold, and ask them to bring any gold they wish to have valued. Some guests may take your offers that night, while others can take a business card, go home, think about it, and contact you later.

Gain someone's trust and respect, and you could have a customer for many years to come. You may find that people will be happier to sell to you instead of taking their gold to a pawnbroker or a "cash-for-gold" store. For some, there is a stigma attached to going to a pawnbroker. Offering your potential clients a relaxed, friendly environment will put everyone at ease, and with everyone taking home a business card or leaflet, you will be expanding your client base. Word of mouth is and always has been the best form of advertising.

Buying Gold Teeth

Gold teeth are an unexpected part of buying gold. Some dentists save gold teeth they've pulled for their retirement. If offered these, knock the tooth away from the gold before weighing it, make money buy and sell gold. If you feel squeamish about this, use latex gloves or hand wipes when working with the teeth.

Selling Gold

In the gold business, selling is just as important as buying. Keep the following considerations in mind as you begin to sell purchased jewelry, rings, and coins.

Timing When You Sell

Because you will be buying gold or other precious metals below market value, you can sell them quickly for a small profit. However, holding back until the market goes up is a better idea, and then you will see a better return on your money.

Acknowledging the Risk

As with all business ventures, there are always financial risks, as prices fluctuate widely. Do not overextend yourself, and be prepared to wait for an upturn in the market. You don't make your profit when you sell. You make it when you buy.

Considering Alternate Markets

Paying the scrap metal value for jewelry and watches is fine, and you will be able to earn a profit. Before you sell, however, consider web auctions like eBay. Please do some research on a piece before putting it up for sale. If it has an interesting history, you could earn well from it. You may get more for a watch than its scrap metal price if it is a desirable object. If it doesn't sell for more at auction, you can sell it for its metal value. You might also consider selling unique pieces to vendors with market stalls at craft, jewelry, and antique fairs. Seek these people out, as they are often looking for new suppliers.

How to Be Professional

The last thing you want to do in the gold business is come off as amateurish, shady, or unprofessional. Here are a few things to keep in mind when building your business.

Be Confident

If you're self-conscious when interacting with strangers, consider taking a public speaking course; this will help you become more confident when speaking to your customers. Contact your local city college for courses or see if there is a Toastmasters club in your area.

Advertise

It is a good idea to have business cards or leaflets printed stating what you buy (e.g. rings, shake your money maker, watches, and coins). Do not include the price you pay per gram or ounce, as this will vary over time as the price of gold fluctuates. Every customer could easy business ideas to make money more clients to you, so always leave a business card or two behind for them to share with friends. You should also build a list of people who have a regular supply of gold (e.g., dentists, people who do house clearances, official receivers, and so on).

Be Respectful

The three Ds—death, make money buy and sell gold, divorce, and debt—are the main reasons people choose to sell gold jewelry and other items below market value. As sad as it may be for the person selling, this is good news for you. They need to sell, and you want to buy, make money buy and sell gold, so it is a win-win situation, make money buy and sell gold. Don't ever be judgmental about someone's position; inexpensive hobbies that make money be professional and respectful.

How to Stay Safe

Buying and selling gold can be a risky business if not done carefully. Avoid getting in trouble or being victimized by taking the following precautions.

Always Ask for ID

It's possible you may be offered stolen jewelry. Ask for ID from all sellers. Either a driver's license or a passport will suffice. Record each seller's name, ID number, and address. If they are honest, they won't mind giving you this information. If you lose someone's business by asking for this information, then you're better off not buying from that person. You do not want to be accused of handling stolen goods.

Keep Accurate Records

Keeping details of all transactions is a good idea. A simple notebook with dates, descriptions, weights of objects purchased, amounts paid, and seller contact details should suffice.

Protect Your Property by Protecting Your Privacy

It is likely that at times, you will be carrying a large sum of cash or valuable gold, so it is important to be aware of the risk of being robbed. Although you may feel safe if you are in a public area, going to your vehicle and returning home could pose a problem. If a potential thief knows you have cash or jewelry in your home, you could be opening yourself up to being burglarized. Do not tell strangers where you live, and be careful discussing what you do until you know a person well. Do not put your address on your business card, lets make lots of money phone number will suffice.

Don't Bring Cash to In-Home Appraisals

Be cautious if you are called to someone's house to give a valuation. Tell them on the phone that you will look at their pieces and give them offers but that you do not carry cash on your person during house calls for security reasons. Most people will understand this, and those who don't are not the type of people you need to be dealing with.

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

Questions & Answers

Question: Where can I get a certificate to open my business?

Answer: You should start at your local chamber of commerce. They will tell you which forms you need to complete.

Question: What licenses do you need to buy and sell gold?

Answer: This article is read by people in many different countries, and so the regulations will be different. Before beginning, you will want to go to your chamber of commerce (or equivalent) make money buy and sell gold ask what is required. They will make money buy and sell gold in a better position to advise you and assist you in setting up your business.

Question: You said you need little capital to buy gold, but how does this work? How would I start with little capital?

Answer: Once you have your scale and all the other items I mentioned in the article in place, start asking your friends and family if they want to sell or give you any articles of jewelry. Some people may be happy to help you and others may just want make money buy and sell gold get rid of it but can't be bothered to get it valued. Any profits you make will be put back into your business.

As with any business, there will be start-up costs, but smart people just keep reinvesting it back into their business. Also, keep your overheads low. Buy, sell, repeat and keep building up your capital. When a bargain comes along, you will then be in a position to act quickly, make money buy and sell gold.

Question: What should I look for when selecting a business location?

Answer: Firstly if you are just starting out, the most important thing is to keep your overheads low. Therefore, don't commit yourself to a brick and mortar store. In the article, I mention organizing parties with friends of friends for example. There is very little you have to spend other than perhaps a few bottles of beverages.

Then, once you get more spending capital under your belt, opt for a freestanding pitch in the city center. These temporary pitches are much cheaper than renting a shop. Although you may be outside in winter, think how many people are passing by. If you do this and continue with 'gold buying parties' in the evenings, you may find you don't ever need to pay the rents and rates of a high street store.

Question: When starting a business in gold, could a range like 60% to 75% work better if gold is high 60% if gold is low 75%?

Answer: I would suggest you think of this as any other item that is for sale. Let's use a car or a house as an example. You buy at a price that you can make a profit and that the customer is willing to sell at. You determine what price you can sell an item accordingly.

Question: How can I determine the karat value of a gold item?

Answer: In the article it explains about scratching a small section and doing an acid test. That will tell you the best cryptocurrency to invest in 2022 august of the gold. The price you pay will fluctuate depending on the market value at the time.

Question: My question is how to set a daily base gold purchase and sell price?

Answer: That will be down to you. No matter what you purchase, be it a car, house etc. There is a price the seller will accept and a price you will pay based on how much you think you can get back when you sell. There are guidelines for cars, houses and gold but there is always someone needing to sell. That is where you will earn the most money, make money buy and sell gold.

Question: Whats a standard percentage to offer for a piece of gold relative to spot price?

Answer: There is no standard price. You are an independent businessman. You will set the price how you see fit. The customer will either sell to you or not. When you then sell it, you will decide what you are willing to accept for it.

Question: With how much gold can I start my business buying and selling gold?

Answer: You can start with very little as I've explained in the article. Ask friends and family if they have any unwanted jewelry. Then begin slowly. Any money you make, reinvest it into your business. There are people who could start with $10k and never make anything. There are others who start with one ring and work hard at their business. If you have a mindset make money buy and sell gold you will succeed, you'll find a way.

I would encourage you to read a book called The $100 start up. It will help you see opportunities.

Question: Concerning starting your own business, you said you don’t make your profit when you sell, you make it when you buy. Can you explain that for me?

Answer: Before you go into any business transaction where you plan to make a profit from it, you need to be aware of your exit strategy. Anyone can buy gold but to earn a profit from it, you need to be purchasing at a price that will allow you to earn a profit. You've heard the saying, 'buy low and sell high&apos.

That is the best case scenario, but you can also buy low, sell at a profit and repeat. There make money buy and sell gold people who will sit on a purchase and hope it increases over the years. There are also people who buy low, sell quickly, and make another purchase.

Question: Where can I find a paid course for buying and selling gold? I'm planning to open a gold buying business, and need to have a mentor. I need a class on where to sell the gold for the highest amount and maybe being able to learn how to melt gold.

Answer: I am not aware of courses in this field. Check with your local college or online academies to see if there are courses offered. I would suggest you begin your journey reading about the process before employing the services of a mentor.

https://www.amazon.com/How-Refine-Precious-Metals.

Question: For a complete beginner, who actually possess very limited knowledge in this field, what would you recommend that person can do to get a basic understanding in this field?

Answer: First, educate yourself by reading about the subject. However, don't get stuck into thinking you have to know everything to begin, old school runescape money making guide p2p don't.

Start with friends and family who are supportive. Ask them if they know people who would like to help you by coming to a gold valuation party. Take business cards, as I've explained in the article. The plus side of doing it this way, is you'll be in a supportive environment and gain confidence. No one expects you to be perfect if you're just starting out.

Another option is, to get a temporary job at a place that buys and sells. There you'll be dealing with the public but with the guidance of others. Then, when you know the business, step out on your own.

Question: How much can I use to start this business?

Answer: Just start where you are today. If you start small, you will build your business up over time. It will make you appreciate what it takes to earn money. That isn't always easy and it will make you more careful with your money and what you choose to buy.

Question: Do I have to be registered to buy and sell gold?

Answer: That will depend on where you live. Check with your local chamber of commerce to see what permissions and licenses you may need.

© 2011 Mary Wickison

Is This the Business for You?

Faik Mammadov on May 10, 2020:

super. thanks

Mary Wickison (author) from Brazil on March 21, 2020:

Read as much as possible both online and offline for the best practices. Start small and keep reinvesting in your business.

Evans Kholisani Zulu from Njube, Bulawayo, Zimbabwe on March 21, 2020:

I love this. I really want to invest in this! I would love to be guided from A-Z until successful, make money buy and sell gold. Is it possible?

Lukasz from Warsaw on February 08, 2020:

Thanks for your valuable knowledge.

Doug West from Missouri on December 23, 2018:

Buying and selling gold can be profitable, I have done it for decades. A word of caution, the improper marking of gold, in other words, it is a lower purity than it is marked is extremely extremely common. Before you start spending big money on scrap gold jewelry, do some experimentation with known pieces to get your testing skills up into good shape.You would be make money buy and sell gold how much off quality gold jewelry (it doesn't test the marked purity) is sold by high-end jewelry stores. Buying and selling gold is just like any other business, if you learn the ropes you can succeed - good luck and do you homework.

Mary Wickison (author) from Brazil on April 20, 2018:

Thanks, James,

You're right both Craigslist and eBay can offer some great deals.

Thanks for your contribution.

james parkhurst on April 20, 2018:

I can say is a great article on this business.I've been buying and selling gold for 6 years now albeit with parental assistance in the beginning (I was dealing with silver 2 years before that and copper 2 years earlier still)

my best buy was a white gold Rolex president for £3,000 that I flipped for £5,000 (it was very beaten up).I'd say the only thing that isn't covered is the potential to scope out deals online as I have bought from Craigslist and even eBay to find good deals

Mary Wickison (author) from Brazil on December 06, 2016:

A good rule of thumb is what you and your customer are happy with. It is likely your customer will know the current prize of gold and will think they should get that price. You will need to check the price and then allow yourself your profit margin. The price can fluctuate greatly and it will be your decision to buy or sell and at what price.

Scott on September 16, 2016:

Is there a good rule of thumb on what to pay for metals in order to make a profit?

Mary Wickison (author) from Brazil on August 02, 2016:

This would depend where you live. I would suggest you start with your local Chamber of Commerce or the equivalent in your country.

Mariya on June 08, 2016:

What kind of documents or certificates I need if I want ti sell gold and silver online?

Thank you!

Nicole Young 07 from Chicago Illinois on April 21, make money buy and sell gold, 2016:

You are welcome Blond logic, I just want people to be totally observant in attending gold parties because they usually weighed together all jewelry, regardless of the individual karat, and then you will be paid based on the the lowest karat value so it may make sense if you separate your pieces of jewelry according to karat. But I totally agree with you, honesty is the best policy, be it in business, situation or personal matters. What you reap is what you sow.

Mary Wickison (author) from Brazil on April 21, 2016:

Hi Nicole,

Yes, make money buy and sell gold, that is good advice. Regarding the gold parties, from a business point of view, these are still a good way to buy gold. Remember this post is how to set up a business.

The scales should be checked often, I would suggest every day and the data recorded. Make money buy and sell gold is best to avoid all possible comebacks and the best way to do it, is to be honest and straightforward. Good record keeping is a necessary part of all businesses, this one included.

I agree with you that much of the advertising is misleading but that is why the market is ready for someone who is honest. Plus, this will lead to positive word of mouth advertising which is always the best kind.

Thank you for reading and your insightful comment.

Nicole Young 07 from Chicago Illinois on April 20, 2016:

Gold is a good investment and if you plan on having a buy and sell business, here are few tips in selling gold which I learned from David Goldstein of Biltmore loan and jewerly, for the last 20 years, the price of gold is at its highest during the month of September, so you may want to consider selling gold during this month. In addition, be wary of rogue buyers and advertisements that are too good to be true, avoid gold parties if you want the best value of your gold because scales used in gold parties are not verified periodically by the US Department of Weights and Measures and make sure to always check the price of gold.

Mary Wickison (author) from Brazil on November 22, 2011:

Thank you,

It actually requires a small amount of start up capital, because after your first deal, it can be self funding.

Thanks for stopping by.

nenytridiana from Probolinggo - Jawa Timur - Indonesia on November 21, 2011:

It is great! I think it is a good business and of course required a large capital. Good work blond logic!

1. Gold ETFs

Gold ETF is a great way of owning gold on paper. It is as easy as buying stocks of companies, readily exchangeable for cash. The purchase and sale can be done using your trading account. You can buy and sell during market hours within the comfort of your home.

There isn't much to think on the choice of gold ETFs in India as all of them have gold as the underlying asset and returns will be almost similar. You could pick an ETF based on expense ratio and other costs, convenience and reputation of the asset management company.

As mentioned before, make money buy and sell gold, gold ETFs are like stocks, therefore the movement in their rates, on some days, can be as volatile as stocks. However, since you have the advantage of exiting from the investment at any time, you will be able to decide on the right time to sell and act fast.

2. Gold futures

The biggest advantage and also biggest risk is that futures offer great leverage, which means that you can own a lot of gold futures for less money.

It works like futures trade in any commodity. Though one can take physical delivery of gold, what motivates traders to use futures is that they can speculate on the price of gold (rising or falling) and make a lot of money, very fast. However, it is with the same speed that you can lose money that you did not even have and end up in debt.

In general, the futures market is for sophisticated investors, and also requires access to futures trading which is a service that not all brokers provide.

3. Investing in gold mining stocks

Just as the movement of crude oil price impacts share prices of oil refiners/marketers, the changes in gold prices impact shares of gold mining companies.

If gold prices rise, the miner's profit will rise, make money buy and sell gold. Its revenue will also go up if production is increased. A double whammy.

However, like any equity investment, especially individual stocks, there is high volatility and risks associated with the company's management. More importantly, India does not really have such stocks. You may have to invest in global markets as most precious metal mining companies are listed across Canada, the US, make money buy and sell gold, Australia and the UK.

Your alternative in India would be to invest feeder funds (like mutual funds) for example- the DSP World Gold Fund that invests mainly in BlackRock Global Funds - World Gold Fund.

Is gold a good investment?

4 ways to invest in gold

1. Physical gold

2. Gold stocks

3, make money buy and sell gold. Gold funds

4. Gold futures

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