Do you want to try your hand in the gold business? Then give yourself a pat on the back, because buying gold is, at the moment, a very hot business (and that's the good news). The bad news is that you will also have a lot of competitors (depending on where you are); for this reason it is more than essential to have a good experience.
Steps
Step 1. The why
If your intention is to buy used gold only once, then it's really simple. Ask people you know if they have gold to sell, or if they know someone else who has it; also ask collaborators and colleagues, or even the nice waitress (the one you hope will look at you). Eventually, you will find someone who will sell you their gold. If, on the other hand, you are thinking of doing it repeatedly, then it takes a little more subtlety, a little planning, and a lot of knowledge on the subject. So let's start:
Step 2. Learn how simple it is to determine the value of the gold used
If the price of gold (the price at which it is traded) is reported in euros per ounce, then you must divide the "spot price" by 31.1, in order to obtain the price of one gram. At this point, multiply the value by the level of purity (the percentage of gold), and you get the value of the gold. Here is an example: A) If the "spot price" of gold is 1000 € / ounce, then you will have 32.2 € / gram (1000 / 31.1), for 24K (carat) gold. That is, a gram of gold is worth € 32.2. B) What happens in the case of 14K gold? Determines the percentage of purity from the ratio 14k / 24k = 58%; therefore a gram of 14-karat gold is worth € 32.15 x 58% = € 18.64. You have thus obtained the value you were looking for. C) Try to understand how much you want to pay. Evaluate the competition, and then set your price.
Step 3. Obtain the license
In Italy, as in many other countries, you need a license to sell and buy gold. If you do this without a regular license, you will be subject to penalties. So you have two options: 1) Get the license. 2) Associate with someone who already has the license. In both cases you will have to incur costs, and each of the two solutions has its own advantages. If you feel ready, it is advisable to go on your own, but if you feel that you need to get some experience first, in order to determine the potential of the market, then the second option could be for you. Make sure you find a good partner, as this will be crucial.
Step 4. Advertise
This step will be different depending on whether you are starting your own business or becoming a broker of a company, which sells and compares gold on their behalf. If you rely on a company make sure that they teach you the tricks of marketing and that they suggest some ideas. Some companies may even provide you with a marketing plan, while others will leave it to you; try to rely on those of the first type. In any case, here are some possible marketing ideas: you can try free methods (such as CL, online marketing, Blog etc..); or you can choose paid advertising (in print, online, via radio or TV). As with any business, this is one of the most fundamental and most expensive aspects.
Step 5. Once you have started and are starting to make money, congratulate yourself
Now stop and try to understand that the time has come to make even more money! Selling gold can earn you a lot! Some buyers buy gold for less than twenty cents for every euro of value, while others pay more than 70 cents for every euro.
Advice
- Make sure you get at least 75 cents for every euro when you buy on behalf of someone else, and more when you trade larger volumes.
- If you work as a broker, make sure you are really working as a broker, which implies that you will have some documentation to fill out. Each sale must be registered, and therefore the company you work for must provide you with all the forms.
- Make sure you have a marketing line, and a way to generate the liquidity needed to buy gold. There is no point in being a broker if you don't have a marketing strategy to help you.
