How to Become a Gold Dealer

Last Updated: October 21, 2021

In times of economic uncertainty, many people want to buy and sell gold either to make quick cash or to purchase a stable investment. Either way, you can make a lucrative living as a gold dealer by following a few tips.

Method 1

Method 1 of 3:

Getting Started

1
Decide what kind of gold to buy. You may decide to purchase scrap gold, jewelry or coins.
2
Research the competition. Check out the competition both in your geographic area and on online auction sites. Your will want to look for what the competition isn’t offering so that you can provide your customers with unique value.^{[1]
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3
Develop a business plan.^{[2]
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- Write an executive summary for your business. This is a concise statement of the business’s purpose.
- Include a more detailed description of the business, including marketing plans, competition assessment, operating procedures, personnel, and an insurance summary.
- Compile your financial data. If you have no business history, create statements to project your revenue.
- Assemble all supporting documents. This includes a copy of your lease if you plan to use a storefront, your tax returns, your licenses and legal documents, and the resumes of your personnel.
4
Obtain financing for your business if needed. Talk to a loan officer from your local bank or credit union about your loan options, and bring your business plan with you.

Method 2

Method 2 of 3:

Buying Gold

1
Learn to test the quality of gold.
- Test gold with a magnet. Gold does not have magnetic properties.
- Test gold with a fine steel file. Gold is easy to file, but the file will bounce off of other metals.
- Purchase acids for testing. Follow the instructions on the package to test the gold for genuineness, testing in an inconspicuous spot to prevent visible damage.
2
Follow market prices. You can find the daily market prices of gold on many brokerage websites.^{[3]
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3
Obtain a scale. You will need to purchase a jeweler’s scale that weighs gold according to pennyweight (1/12 of a troy ounce) rather than simply weighing gold in grams.
4
Buy gold from customers. Many customers are happy to sell their gold jewelry and coins to a respectable dealer.^{[4]
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5
Purchase gold at trade shows. Many dealers at a trade show will give a price break to someone who is just getting started in the business.
6
Purchase gold in large volumes. Large volume purchases tend to have a lower price per ounce.^{[5]
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Method 3

Method 3 of 3:

Selling Gold

1
Market your business.
- Try online advertising or search engine marketing by contacting a marketing expert or by using Google AdWords.
- Advertise in respected trade publications like Gold World.
- Advertise in your local newspaper or online news portal.
2
Choose your premium. You may choose to charge between 1 and 5 percent of the value of the gold for each sale.^{[6]
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3
Decide whether or not you want to negotiate prices with customers. Many customers enjoy the negotiation process, but you can decide whether or not you want to bargain.
4
Consider becoming an Authorized Purchaser with the United States Mint. This lends your business an air of authority, but the requirements you must meet are a bit strict:
- Have a business net worth of at least $25 million for the past 3 years.
- Be in business for 5 years or longer.
- Become certified by a CPA who is a member of the American Institute of Certified Public Accountants.

Community Q&A

Question

How do I profit when dealing gold?

Community Answer

Charge more to sell the gold than you paid to purchase it.
Question

What stores sell scrap gold?

Roger van piggelen

Community Answer

Some jewelry stores will, and pawn shops are a great spot to get some. Check the going rate on the market before you go so you have a rough idea what it goes for.
Question

Is there no actual license that I need?

Donagan

Top Answerer

Requirements vary by location. A general business license is often required. The same may be true of metal dealers. Contact local authorities for pertinent information.

Warnings

Most states require you to check your customers’ photo IDs before selling gold to them, so make sure that you understand the laws of your state.

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Be aware that some gold jewelry may have another metal inside it to add weight. This is especially common in hollow looking bracelets and omega necklaces.

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Do not fall for the "dental gold" scam. Dentists use a metal that may look like white gold and even tests like it with acid. If you see anyone selling a white gold lump, proceed with extreme caution.

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Keep in mind a stamp is no guarantee. Just because it's stamped 14k or 18k, it could be fake. Unfortunately this is common on items from Mexico that unsuspecting tourists buy. as there are unscrupulous sellers that will buy stamping gear.

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