How to Become a Gold Dealer

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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

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  1. You may decide to purchase scrap gold, jewelry or coins.
  2. 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.
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  3. [1]
    • 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. Talk to a loan officer from your local bank or credit union about your loan options, and bring your business plan with you.
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Method 2
Method 2 of 3:

Buying Gold

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    • 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. You can find the daily market prices of gold on many brokerage websites.
  3. 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. Many customers are happy to sell their gold jewelry and coins to a respectable dealer. [2]
  5. Many dealers at a trade show will give a price break to someone who is just getting started in the business.
  6. Large volume purchases tend to have a lower price per ounce. [3]
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Method 3
Method 3 of 3:

Selling Gold

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    • 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. You may choose to charge between 1 and 5 percent of the value of the gold for each sale. [4]
  3. Many customers enjoy the negotiation process, but you can decide whether or not you want to bargain.
  4. 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.
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Expert Q&A

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  • Question
    How should someone clean tarnished gold?
    Kennon Young
    Master Gemologist Appraiser
    Kennon Young is a Master Gemologist Appraiser and the Owner of Vermont Gemological Laboratory in Burlington, Vermont. With over 20 years of experience in the industry, Kennon and his team specialize in handmade engagement rings, wedding bands, and custom jewelry. He attended the Revere Academy of Jewelry Arts, the Gemological Institute of America, and the Rhode Island School of Design Extension. He is a Jewelers of America (JA) Certified Bench Jeweler Technician and received the highest credential in the jewelry appraisal industry, the ASA Master Gemologist Appraiser, in 2016.
    Kennon Young
    Master Gemologist Appraiser
    Expert Answer
    Gold will only tarnish after 50-60 years. If you have gold that's old enough to be tarnished, removing the tarnish will most likely devalue the gold as the tarnish is showing its antiquity so don't de-tarnish gold.
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    Not Helpful 1 Helpful 1
  • Question
    How can you tell if gold is fake?
    Kennon Young
    Master Gemologist Appraiser
    Kennon Young is a Master Gemologist Appraiser and the Owner of Vermont Gemological Laboratory in Burlington, Vermont. With over 20 years of experience in the industry, Kennon and his team specialize in handmade engagement rings, wedding bands, and custom jewelry. He attended the Revere Academy of Jewelry Arts, the Gemological Institute of America, and the Rhode Island School of Design Extension. He is a Jewelers of America (JA) Certified Bench Jeweler Technician and received the highest credential in the jewelry appraisal industry, the ASA Master Gemologist Appraiser, in 2016.
    Kennon Young
    Master Gemologist Appraiser
    Expert Answer
    Sometimes it's stamped with something that says GF on it. This means Gold Filled. If there's green oxidation on the surface, that's typically an indication but the only way to be sure is if it's tested with gemological equipment or gold testers.
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    Not Helpful 0 Helpful 1
  • Question
    How do I profit when dealing gold?
    Community Answer
    Charge more to sell the gold than you paid to purchase it.
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      Tips

      • Try hosting gold parties. You will pay guests for gold that they bring in to sell at the party, and then you will sell the gold to a refinery that will hopefully pay you a higher price than you originally paid for the items.
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      • When buying jewelry keep in mind to account for the weight of any stones/gems/other metals.
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      • Know what markings to look for: 8K or 333, 9K or 375, 10K or 417, 14K or 585, 18K or 750, 20K or 833, 22K or 875.
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      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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      • 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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      • 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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      Things You'll Need

      • Business plan
      • Financing
      • Supplies for testing gold including a steel file, magnet, and acid testing kit
      • Scale

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      References

      1. ↑ https://careertrend.com/how-to-become-a-bullion-dealer-13648300.html
      2. ↑ https://ourpastimes.com/become-gold-dealer-distributor-6121519.html
      3. ↑ https://careertrend.com/how-to-become-a-bullion-dealer-13648300.html
      4. ↑ https://ourpastimes.com/become-gold-dealer-distributor-6121519.html
      5. ABC News--10 Tips for Selling Your Gold for Cash

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      • Huseini Baza-Awe

        Apr 8, 2018

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