How To Become a Gold Dealer

Many people want to buy and sell gold in times of economic uncertainty, either to make quick cash or to purchase a stable investment.You can make a living as a gold dealer by following a few tips.

Step 1: Decide what kind of gold to buy.

You can purchase scrap gold, jewelry or coins.

Step 2: Look at the competition.

There are online auction sites where you can check out the competition.It is important for you to find out what the competition is not offering so that you can provide your customers with unique value.

Step 3: A business plan is a must.

You should write an executive summary for your business.This is the purpose of the business.The description of the business should include marketing plans, competition assessment, operating procedures, personnel, and an insurance summary.Your financial data should be compiled.If you don’t have a business history, make statements to project your revenue.All supporting documents should be assembled.If you plan to use a storefront, this includes a copy of your lease, tax returns, licenses and legal documents.

Step 4: If you need financing, get it for your business.

Bring your business plan with you when you talk to a loan officer from your bank or credit union.

Step 5: You can test the quality of gold.

You can test gold with a magnet.Magnetic properties of gold are not present.The gold should be tested with a fine steel file.It is easy to file gold, but it will bounce off other metals.Purchase acids for testing.To test the gold for genuineness, follow the instructions on the package.

Step 6: Follow the market prices.

On many websites, you can find the daily market prices of gold.

Step 7: A scale can be obtained.

If you want to weigh gold in grams, you will need to purchase a jeweler’s scale that weighs gold according to pennyweight (1/12 of a troy ounce).

Step 8: Purchase gold from customers.

Many customers are happy to sell their gold jewelry to a dealer.

Step 9: Purchase gold at trade shows.

Many dealers at a trade show will give a price break to someone who is new to the business.

Step 10: Purchase a lot of gold.

The price per ounce for large volume purchases is lower.

Step 11: You should market your business.

You can try online advertising or search engine marketing by contacting a marketing expert.Gold World is a respected trade publication.You can advertise in your local newspaper.

Step 12: You can choose your premium.

You can charge between 1 and 5 percent of the gold’s value.

Step 13: Decide if you want to negotiate prices with customers.

You can decide if you want to bargain or not.

Step 14: Become an authorized purchaser with the United States Mint.

You need to have a business net worth of at least $25 million for the past 3 years to meet the requirements.You should be in business for at least 5 years.Become certified by a member of the American Institute of Certified Public Accountants.