1. Register your business
The first recommended step to take when planning to start your gold business is to register your business and obtain all necessary business licenses that may be required to trade in gold. You may consider registering your business as a limited liability company so that you can protect your personal assets from any business liability.
2. Decide on the kinds of Gold you would be buying and selling
You should also make up your mind on the kinds of gold you want to be dealing in. Do you want to be buying outdated jewelries or broken jewelries, so that you can refine and resell? Wedding bands or brand new gold jewelry for resale, or would you rather deal in raw gold? Below are few niches within the gold trading business, that you can start today.
3. Learn about new trends in the business
The gold business goes beyond buying and selling gold.There are new trends in the business that you can also take advantage of. For instance, you can go into selling gold-plated items such as cellphones and tablet computers or even luxury wine bottles. You can even get people who want to customize their phones or design their clothes with gold. All these are business opportunities you can look into.
4. Learn about gold valuation
Gold business is not a business that you can enter into as a novice. To be a successful gold trader, you must know how to measure and weigh the purity of gold, prior to buying it. You must know how to identify original genuine gold and how to determine the value and prices of every piece at any point in time.
There is a standard guide to appraise gold coins while gold jewelry shall be valued with its fineness. There are standard tables to determine the amount of gold in each piece and its value in the market.
Once you know of its value and you feel you can profit from it, buy it. You should also be aware that the prices of gold fluctuate a lot, so you must know the best times to buy and sell. If you buy wholesale, you can get gold at a cheaper cost and be able to sell it at a higher selling price.
5. Determine who the buyers of your gold would be
You must also be able to decide on the people who would buy your gold. Examine the market to see where demand for gold comes from and who your competitors are selling to.
You can also form an alliance with jewelry shops in your area so that you can supply them gold which they can also sell for a profit. You could also look out for gold wholesalers who would buy them in bulk from you.
6. Develop a business plan
Plan your business carefully and decide on how you are going to run your business and how you are going to expand the business in the future.
7. Purchase all the necessary equipment
You should also purchase all the necessary equipment needed to start the business and even some few pieces of gold to start with. With about $500 capital, you can conveniently start a small gold buying and selling business.
8. Look for sources to buy gold from
One very important part of this business is how and where you would get your gold from. You may decide to set up an office where people who need to sell their personal gold jewelries can walk in and sell their gold to you which you would buy at a discounted price, so that you can sell at a profit later.
You may also look for people who deal in selling of raw gold and start buying from them although this process is more technical than the former.
9. Advertise and promote your gold business
Gold business, just like any other business needs regular marketing and advertisement to promote sales. If you can afford television or radio adverts, that would be fine but if you cannot, you can advertise on the internet or through classified newspaper adverts.
10. Secure and protect your business
Gold business is a business that requires a high level of security. A small piece of gold may be worth millions and if it gets stolen or lost, that would lead to a huge loss, so you must take the security aspect of your business very seriously.
Apart from investing in a strong metal safe for storing your wares, you should also hire security personnel who would watch over your business premises daily.
11. Think Big and Grow your Business
Another aspect of the gold business you can look into is having people come and exchange their gold jewelry for another one with little charges to be paid or to have people come and borrow money from you while they use their gold jewelry as collateral.
You can make very good money from buying and selling gold. However, you need to take time to learn all the ropes before you jump into the business because it’s a business with high risks, and unsuspecting beginners may easily fall into traps and be duped by unscrupulous gold traders.
It is recommended to work closely with someone who is experienced in the business for sometime before you start your own gold buying and selling business.