Make Huge Profits With Scrap Gold Business
Starting a business is not an easy one, as it takes a lot of thinking and planning. Finding an excellent idea and right business is a daunting task. First list out the different options of business ideas and choose one from it. In this article, we will explore the process of starting a scrap gold business and the process to make huge profits with a scrap gold business.
What is Scrap Gold Business mean?
Selling the scrap gold has become a popular activity as the price and value of the gold has risen. Some individuals sell only the damaged gold jewellery which they have on hand, while the other people make money on buying the scrap gold at a low rate and selling it back for a high price elsewhere. “Scrap Gold” means it is just gold, when we call it scrap it simply requires some energy and time to recover.
Thus Scrap Gold includes any piece of metal that is partly or entirely gold. Some of the common items sold as scrap gold includes
· Broken gold
· Gold coins
· Gold wire
· Gold shot
· Gold dental bridges
· Bracelets and chains
· Gold crowns
· Gold earrings
· Gold solder
· Gold pins
· Gold Broaches and
· Gold watches
Buying scrap gold is a fast catching up business. Now a day’s people are more willing to sell their gold to a gold buyer than a pawn shopper or jeweler. There is a tremendous increase in the number of gold buyers and sellers each year. Pawn shops and jewelers only give 50-60% and a gold buyer can give 70% which is beneficial to the customers. If you note, the value of the gold has only been increasing but never decreasing.
Usually gold transactions are done in pennyweights. If you don’t happen to have a scale for your scrap gold, you can still weigh it in this way, hold your gold in one hand and your pennies in another hand one at a time. When the hand holding the pennies weigh equal to the hand which hold your scrap gold, stop and count your pennies in the hand. And then multiply your pennies by 1.5, thus this will give you an approximate weight of your scrap gold. Then the next thing is to find the current sport price of gold. Here prices are quoted in ounces. Divide that price by 20 which will give you the pennyweight. Keep in mind that this is the price of pure gold (which is 24Karat gold). Thus each piece making scrap gold must have the number of karats marked on it somewhere
Scrap gold is usually valued by its karat weight, where it is related to the percentage of gold in the price. High the number of karats contains a greater percentage of gold. Hence pure gold consists of 24K and the 12K is about 50 percent gold.
The condition for scrap gold really doesn’t matter. The Gold which is worn, scratched, and dirty or broken which can be melted down by refiners and made into a new ring, bar, coin or tooth.
Some of the scrap gold includes gemstones. If you are planning to sell your scrap gold make sure that you first remove the stones.
Scrap Gold prices:
The prices of the gold changes every day and reflects the live spot gold price in your country. Prices of the scrap gold vary between dealers and sellers and are advised to shop around for the best price. The amount offered for the scrap gold varies based on how much the gold are in the item and the price of gold that day and the scrap gold dealer’s fees. Hence the price offered on a piece of scrap gold will not reflect your retail price of the item.
How to buy a scrap gold?
1. If you are looking to buy a scrap gold, it is very easy. Just ask all the peoples whom you know if they have any gold and they want to sell them out to someone. Communicate your desires and wants before buying a scrap gold. Eventually you will find someone who wants to sell you their gold. If you want to do this multiple times, then it requires some planning and finesse and lot.
2. Next learn the value of scrap gold which is easy to figure out. Take the spot price of gold and divide this by 20 to get penny weights and then multiply this number time the purity level and you have the value of the gold.
3. Advertising is an important part. This depends if you are going in alone or if you are to become a broker with a company and purchase it on their behalf. Some of the marketing ideas includes you can try for free methods like
· Online marketing
· Blogs etc, and paid for like
· Print ads
· Radio and
For any business this is the biggest part and it costs more money.
How to start a scrap gold business?
=> Structure and establish a business legally. To get advantage of tax benefits and to protect yourself from potential litigation, form a corporation or LIC. Or you can either hire a certified public accountant or attorney to assist you with this process.
=> Obtaining a federal tax ID number from the IRS. A federal tax ID number, which is also known as an employer identification number, allows you to open a business checking account and identifies your business and establishes business credit. Visit IRS.gov to print out Form SS-4 to mail in, or to obtain your federal tax ID number or to contact an IRS agent over the phone to obtain your tax ID number.
=> Next determine if you want to operate online or offline business. Locate a property to purchase or lease for your business if you choose to have a storefront (a real estate agent can assist you for this). Or else, hire a freelance Web designer to design your website.
=> Purchase the equipment in order to determine the purity of the gold and silver which your customers will attempt to sell you. You can even buy any industry-specific electronic products in order to determine the purity and density of gold and silver.
=> Find a refinery to work with. After you purchase scrap gold, you’ll then sell these materials to a refinery, which will take your scrap metal and melt it down into coins or other items.
=> Advertise your business. Mostly, people who are in need of cash will visit pawnshops and cash-advance stores. Place some persons or fliers in areas close to your business locations, as well as in nearby supermarkets. Create your own website to advertise your business even if you have a physical shop or storefront.
TURNING YOUR SCRAP GOLD TO CASH:
Have you ever been taken a look in your jewellery box and found some scrap gold which are of no use? Have you done anything with those scrap? Never think of throwing them away, since these “you-thought-were-junks” have some value too. Scrap gold can also be sold for cash. You believe it or not but they are actually worth more than what you thought.
Discarded gold which includes your broken gold, gold coins, jewellery, gold wire, gold shot, gold dental bridges, bracelets and chains, gold crowns, gold earrings, gold pins, gold broaches and gold watches etc. are still valuable. You can actually sell those at a higher price than you expected. There was a mother who wanted to give a special birthday party to his son but she is in a short of money. What she actually did was look into her jewellery box and found scrap gold. She collected them, send it to online cash for some gold companies and to her surprise, she had received a huge amount of money more than she expected. She not only throws a big birthday party to her son but also she brought him a bicycle as a birthday present.
Stories like these happen in most of their real life. For a beginning, it is just a surplus scrap gold but then it can also be useful if you exchange it to cash than any other resource. Just imagine how much you will be able to earn if you sell some of yours scrap gold like this. There are so many things that we can be benefitted from scrap gold. Of course, the cash value is very helpful one. It can be used to buy food and groceries. You can even use some of your cash to pay your bills. Or you can also use the cash you got from scrap gold to pay your long-time debts. Thus If you have more scrap gold then, you will receive much cash.
Most of them would even consider buying and selling of these scrap gold as a business. They actually invest in buying scrap from anybody and from anywhere then when they have actually collected enough, they will sell this at a much higher price as a bulk. The income is really good in this kind of business as long as you are expert in scrutinizing pure gold and you are very well experienced in business dealings. We can even make it as a hobby of collecting scrap gold and become richer in the end.
POINTS YOU HAVE TO KNOW WHILE PURCHASING SCRAP GOLD:
· Firstly ask your insurance agent about the specific coverage for your scrap gold. Make sure that the policy you select mush has an endorsement to cover the scrap gold you purchase from customers and understand how the insurance companies value your scrap gold and also make sure what documents you needed so that you get paid if a loss occurs.
· Most of the jewellers mutual have developed a scrap gold worksheet which helps you to track purchases of scrap gold. This tool will help you when you are a jewellers mutual policyholder in order to record and document the information needed to insure your scrap gold with the current market prices.
· If you are going to purchase a scrap gold make sure that you comply with federal, local and state requirements.
· Other requirements such as
Shipping scrap metals
Peak season coverage
Hence becoming a scrap gold buyer is not a very difficult. Actually it doesn’t need any educational qualifications or training. You only need to invest your common sense and time. Choosing a right refinery to sell scrap gold is a very important task. It is a very good idea to consider a refinery. Before selecting a refinery, make sure that you visit their office and check out their recourses. The refinery cost should not be more than the 5%.
Next stone tweezers are very helpful where your customer only wants to part with her gold but not with the stones in the ornaments. Most of the gold buyers have just lost their customers just because they do not have equipment to remove stones and other precious gems from the jewellery.
Making people aware of your business by advertising your business is a very important job. Make sure that you have as many parties as possible. Most of the buyers make huge profits in gold parties. An average customer has about $300 of gold and even if you pay 65-70% you will make $100 before paying to the refinery. Thus by considering a party of 10, you can easily earn up to $1000 in just a few hours!
When preparing to sell or buy a gold do it for a profit, make sure you deal only with reputed and established companies. Most of the good companies have a website with a gold calculator so that you will have a rough estimate on how much profit you will make; most of the best companies can also offer a price guarantee…
Always have a track on the market conditions and the other details about gold, as the value of gold keeps changing everyday and thus you need to be updated properly. Proper information and knowledge will save you a lot of money and make you huge profits with your scrap gold business.
Thus scrapping gold will provide you many benefits for and there are many ways to gain income from this job too. You can start up your own scrap gold business and become a successful business owner in the market and earn huge profits these days.