Gold Gold Gold

[brightidea]

Greetings to all,

I'm just brainstorming on a big scale;

I would like to be an independent "Cash for Gold" person which is 180deg in a different direction to what I normally do.

So quick Q's

1 Who buys the bulk gold? ie who a jeweller would sell to.
2 Who runs courses on how to value Gold / check it's genuine etc.
3 Insurance for someone who carries Gold and cash at the same time!!

What stops me doing this as a job..

I know I'm looking a little bit "ladybird book of..............." but it's a new field (for me), and there is very little info around.

Brightidea

 

[Jenni384]

Some precious metal merchants buy scrap gold in bulk from jewellers and presumably other dealers.

As to the other questions, I'm not sure.

 

[crossdaz]

What stops me doing this as a job..

The small issue of not knowing anything about gold could be a problem? I don't think it's something you can just learn overnight?

 

[brightidea]

Thanks for the comments;

"The small issue of not knowing anything about gold could be a problem"

Yes, it is a problem and I hope to find the answer here.

Now let's break it down into it's fundamental business processes.

It is surely just a game of buy low, sell high.

To achieve this I need to ID the sellers, the buyers will be easier, jenni 384 has given a lead. The only other obstacle is that of confirming what the gold quality is and if genuine.

A bit of admin; seller ID, scales calibration, insurance and we're off.

I feel the hard bit, in an area that's been quite dominated by the internet / postal companies will be squeezing out the new customers.....

 

[Attaintm]

Hi,

Bullion dealers would by the scap gold or precious metals.

My wife works for a bullion dealers so with regard to testing the gold there are kits that you can buy for about £30 quid or you can get an XRF machine although these cost thousands.

There are insurance brokers that will insure you for carrying cash etc.

 

[brightidea]

Attaintm,

Thanks for the reply. I have just had a look at what a XRF machine is and yes I can see £££££ there. The gold I expect to buy will be hallmarked (should), so really I need a quick check. I have seen (in fact I will go and chat to them) the Gold4cash lot just file off a bit of the surface and use a chemical to test. I'm thinking this is the £30 kit you talk of...

Just looked, and yes it's acid testing. So that's that then...? Or are there any "gotchas", scams etc......

Any recommended Bullion buyers, inc your wifes

Cheers

Brightidea

 

[Attaintm]

I'm not sure about whether there are any scams and the wife's not about to ask.

With regard to Bullion dealers I guess it would make sense to use a local dealer. If you're in Birmingham I can recommend Stephen Betts Group.

 

[brightidea]

I'm not sure about whether there are any scams and the wife's not about to ask.

With regard to Bullion dealers I guess it would make sense to use a local dealer. If you're in Birmingham I can recommend Stephen Betts Group.

Thanks again Attaintm, I am in East Anglia area. However, having just looked at the numbers. Some kin folk traded her Gold in to the local Jeweller (9ct) 29.9g and she got £240 which equates to £8/g, the first Bullion dealer I have looked at buys at £11/g for scrap jewellery (vat reg only - makes sense) maybe get more for big bulk. This means the jeweller made £90!! and he was consistent with another Shopping centre "gold collector stall".... more digging required..

Seem all i need to do is source the gold......

 

[brightidea]

having just looked at the numbers. Some kin folk traded her Gold in to the local Jeweller (9ct) 29.9g and she got £240 which equates to £8/g, the first Bullion dealer I have looked at buys at £11/g for scrap jewellery (vat reg only - makes sense) maybe get more for big bulk. This means the jeweller made £90!!

Sorry, please excuse my stupid ERROR!! The sale was about 5-6wks ago, the bullion buying price was today... obviously this will throw up errors.. I wonder what the gold buying price was 6 weeks ago!!

 

[Attaintm]

The price of gold changes twice a day so you need to keep a close eye on it

 

[AndyBlue]

If you are serious about this two suggestions 1. One of the cash for gold businesses actually offers a franchise, so this could be an easy way in as they will take the gold off you and sort out the training piece. 2. Take a trip to the Jewellry qtr in birmingham which is the centre of the jewellry trade in the UK if not the world. Speak to any of the shop owners hear and they woudl probably be able to point you in the right direction as you wouldn't be competing with them.

 

[brightidea]

The price of gold changes twice a day so you need to keep a close eye on it

Yes, cheers.

It was faux-par. Any rec for a good Precious metal price website? inc history?

Also who at the moment within the Globe is soaking up the Gold requirements?

Cheers again

 

[brightidea]

One of the cash for gold businesses actually offers a franchise, 2. Take a trip to the Jewellry qtr in Birmingham

AB, cheers.

I have looked at one of those C4G franchises, some set up cost!! They do offer, obviously, the training, but is there that much training really? I'd be interested to hear from anyone who has been through the programme.

I never knew there was a Jewellery Qtr, I did think I was on to thread with Birmingham Uni offering Summer Courses in the trade...... unfortunately that was 2008.

Thanks for the advice, Jewellery Qtr is a direction.

 

[brightidea]

hahahaha, difficult

What is difficult?

 

[MASSEY]

I seem to recall hearing not to long ago that silver is starting to be more lucrative.

 

[JohnnyCash]

Reading this thread (and many others like it here) makes me think of my little brother telling me he wants to be a fighter pilot or a footballer...

 

[astutiumRob]

franchises, some set up cost!

How do you think they really make their money ...

 

[brightidea]

.....think of my little brother telling me he wants to be a fighter pilot ...

Yes, I too knew someone at about 7 or 8 yrs old hoping to be a Fighter Pilot........ at 13 he joined the ATC....... 21 yrs...... off to RAF Cranwell....... now aged around 40; has been Flying Tornado GR4's for nearly 20 yrs..

...... doesn't like Footbal though.

However, I see your point this is a "Basic" thread, but it was just brain storming. Even from the little info I have I have made head way.

I know what I can sell Precious metal for, the money will be made in the Scrap purchase price. Now wading through the admin.

Any help with:

1. Insurance
2. Licences
3. VAT
4. Assay
5. Legalities / Contracts
6. Equipment - Acid, Scales, Proofweights etc
7. Security
8. anything else, but not how to Fly!!!!

Thanks in advance.

Brightidea.

and no.... I am not the Fighter Pilot.

 

[D.G Holdings and Procurement]

In response to your original Q's;

1 Who buys the bulk gold? ie who a jeweller would sell to.

Bulk gold is bought primarily by bullion dealers and direct sale to refineries. A quick internet search will throw up a lot of different bullion dealers and UK based refiners that are will to buy your gold, all be it at market price.


2 Who runs courses on how to value Gold / check it's genuine etc.

Your best bet is to do your homework on the history of assaying. Learn the different way in which gold is marked. A lot of this information can be ascertained online and easily printed for your reference. In terms of testing un-hallmarked pieces you would again need to acid test and this would need certifying.

3 Insurance for someone who carries Gold and cash at the same time!!

Specialist insurance is available for this type of business but be prepared to pay for it due to the high risk nature o the business.


Just a further point. As has been mentioned the price of gold fluctuates a lot with varying trading market conditions. What you can do is find a reputable site and watch the price of gold per troy ounce with instant feedback.

If you need anything further please PM me as i may have some useful information for you to take on board.

Regards

 

[brightidea]

Thanks EP.

I am as you advise trawling the web for information. and there is a lot of it.

I would as a matter of course test all products for authenticity regardless of Hallmarking. I have sourced the kit. As for the Acid testing, what do you mean certifying? My plan is to buy domestic scrap (assayed) for one price, then sell up in bulk for another. Not trying to complicate the process.

The next part of the plan is to research the legalities; it's apparent i don't need and licenses. Just register as a sole trader.

I am aware the ID of the seller is taken buy jewellers and "cash for gold" traders. Still trying to find the legal reason behind it and where it written.

I guess I need the ladybird book of ......trading

anyhow thanks again,

Brightidea

 

[D.G Holdings and Procurement]

The reason for taking ID from the seller is to verify each purchase should the police come knocking for any possible stolen jewelry items.

I would advise that with each "sale" you make, you should take down the name, address and driving license/passport number from the sellers I.D and advise the customer that this is for security purposes. The you can issue a direct receipt to the customer and keep a duplicate with the details for your own records.

Acid testing is a test that jewelers use to test the authenticity of a gold item. It involves using a specific acid testing kit and putting a minute amount on the item, the way in which the item reacts allows you to tell if the item is genuine gold, if it is plated or coated.

Hope this helps

 

[Rijhwani Pooja]

The price of gold changes twice a day so you need to keep a close eye on it

Hey thanks for the info... But do you think that investing in gold is a better option than investing in any other assets like mutual fund or recurring FD.

 

[popunder]

Not convinced about your scheme but I can suggest Star Refining in London as a place to sell scrap gold direct to the refinery and so get the best price.