Buying and Selling Gold

Recently there has been much in the news about the price of gold. Like most people you might be asking yourself if you should sell some while it is high to get the best price or if you should invest in gold just in case it goes higher.

If you want to earn a good income, now is the time to buy gold. I don't mean buying from jewelry stores, I am referring to buying from the public. On this page I will take you step by step through the process to start you on your way to earning.

The first thing you will need to buy is a gold testing kit. These are quite reasonably priced and absolutely necessary for your business. You will be using this to verify what carat gold your customer is trying to sell you.

Your kit should contain different acids that will test for 10k, 14k, 18k, and 22k.

This is something that is of course is a necessity . A professional scale, although initially more costly, will provide you with years of reliable service. Do not use a kitchen scale for your new business, these are not legal for trade. You are running a professional business, make it look professional!

It is a good idea to take readings from your scale at least once a day to ensure its accuracy. Keep a record of this in case anyone questions it.

Yet again, purchase good quality items such as this magnet and you are in business for years to come. You will be using your magnet every time someone brings you jewelery.

You will also need a metal file to scrape away the plating that covers the outside of the piece.

When the customer brings you an item, it may have a mark on it to tell you what carat of gold it is . Using your magnifier loupe, check for any hallmarks.You may still have to do an acid test.

After asking the owner's permission, make a small scratch through the outer layer with your metal file. Then begin with your 10k acid.

If you are just starting out and lack confidence, practice on jewelry you may already have. This will give you confidence when you are testing a customer's piece in front of them.

It is a good idea to have business cards or leaflets printed stating what you buy for example rings, chains, watches, or coins. Do not put the price you pay per gram or ounce because that will vary.

Put your phone number but do not put your home address for security reasons. If this is where you will be buying from then once you have spoken with them on the telephone you can give them details.

Either you or a friend could organize a valuation party. Have them invite their friends and ask them to bring any gold they wish to have valued. They may take your offer on the on night or they may simply take a business card, go home and think about it and telephone you later.

Serve snacks and light refreshments and you could also give your party planner a fee or gift for organizing the party.You may find that people will be happy to sell to you whereas they would have felt uncomfortable taking their gold to a pawnbrokers or a "cash-for-gold" store. The 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 the best advertising.

Gold teeth are an unexpected part of buying gold. In fact, some dentist s keep the gold teeth for their retirement. If you are presented with any, you will need to knock the tooth away from the gold before weighing.

Paying the scrap metal value for a jewelery and watches is fine and you will be able to earn a profit. But before you sell, consider selling the watch or jewelry at auction. You may get more for them than the scrap metal price if it is a desirable object.

It is possible you may be offered stolen jewelery. If you have any doubts, ask for ID from the person. Either a driver's license or a passport. Write their name, ID number, and address. If they are honest, they won't mind giving you this information. If you lose the purchase by asking for this information then you are better off. You do not want to be accused of handling stolen goods.

Keeping details of all transactions is a good idea. A simple notebook with date, weight of objects and amount paid and their contact details should suffice.

You should start to build a list of people who will have a regular supply of gold, for example dentists and people who do house clearances etc.

Also start to source out where and who you can sell to. All rings and jewelery may not go for scrap metal. There are places to sell such as Ebay, and to others who sell on market stalls and craft fairs. Seek these people out, they will often be looking for new suppliers.

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