The majority of us have caught on to the fact that gold prices
The majority of us have caught on to the fact that gold prices are steadily rising. The recent governments injections of paper currency into the economy creates immediate inflation of that money, which then drives up the value of gold and silver. This recent climb in the price of precious metals has hatched a new business model of buying and refining old used jewelery and scrap gold. One niche area that has not yet been fully recognized to its potential, is the gold buying home business or gold party.
A home business based around buying scrap gold is a relatively simple and profitable business to start up. Just about anybody armed with some basic knowledge and willing to invest a modest amount of start up capital can succeed in this business niche. How and where you get that knowledge can also determine your success and failure. There are many training courses available for an eager entrepreneur looking to break into the gold buying home business. Some of these options will come with a hefty price tag attached. It is perfectly acceptable to pay for an informational program to help you get started in the scrap gold business, however there are many instructional courses available online that are completely free. YouTube hosts many videos on how to start a gold party business and they are stuffed full of high quality information. The choice is yours whether you decide to pay for you information, or search it out for free, and does not have an impact on you success either way.
The next thing you are going to need is some gold buying tools. These tools can vary from one buyer to another, but some staples are going to be absolutely essential. You can get hundreds of tools to make up your gold buying kit, but for the bare minimum you are going to have to purchase these five items:
A gold tester
A precision scale
A jewelers lighted loop
A lock box or small safe
A rare earth magnet
Most of these essential items are very inexpensive. A gold tester is going to be your most expensive item and is the one that will vary in price the most. Some people are fine with buying and using inexpensive chemicals, called acid tests. While others will go with the top of the line electronic testers. I would suggest a mid level electronic tester for most people starting a gold party business.
The next thing you will need is to acquire some marketing, advertising and promotional materials. You can contract with a graphic designer to develop these items for you, however that can be quite costly. Another option is to buy some previously developed material available for your use and company branding. This is an easy option and should only run at minimal cost. The final option is to develop this material yourself. This is the most cost efficient option, if you are graphically inclined and already posses the graphic development software needed. However I do caution that these graphic software tools can be expensive and have quite a hefty learning curve. All these options will require you to self print (either on a home printer or at a local print shop) when you plan on using hard copies of the promotional material.
The last basic faucet of starting a home based scrap gold buying business is selling your acquired scrap gold. This requires you to deliver the recently purchased old jewelry to a refiner so they can smelt the product, and pay you on the weight of its gold content. This is a critical step of your business, and one that should not be taken lightly. There are many companies and websites out there that claim to be able to get you started in the gold party business and will pay you for your efforts. Be very wary of these companies. They will use you as a contracted agent to acquire scrap gold for them, which they then send to a refiner, and only compensate you with a percentage of the refiners check. There is no need to have a middle man when you are starting a gold buying business. However these companies will make it seem like they are needed, and it requires them to make your business more successful. In actuality all they are doing is taking your scrap gold and sending it into a reputable refiner(and it is not them do not let them fool you). And for just being the middle man, they will take a good portion of your potential profits. These middle men do nothing but skim your profits for simply reshipping your scrap gold.
These types of companies understand that most people seek out simple convenience, and they know that finding a good refiner is very hard. So they pray on this fact, and make it seem convenient to use their “services.” It is very difficult to find a reputable gold refiner. A simple Google search will only result in a long list of these middle men I have already warned you about. You are going to have to do your homework here to get a good refiner, that pays a premium rate. You may also need to do some small runs to test out someone you have researched. Refiners also have different payout structures. Some will pay better with larger shipments, some with smaller. Some charge an assay fee, some give better returns if you want gold bullion instead of a check. This will be the most important part of your start up business. You should never cut corners in finding a refiner. Getting a good set of refiners from the beginning can save you lots of early frustration and could mean your ultimate success in the gold party business.
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