Category Archives: Strategies

Make Money Buying and Selling Gold

How to Make Money Buying and Selling Gold

1st, be honest with folks! Avoid paying your scrap gold sellers peanuts for their old jewelry and bracelets.

Treat scrap gold sellers fairly and they will come back in future weeks and months.

And of course, they’ll send their friends and family members to you for gold purchases as well.

So, the gold buyer at the local pawnshop will try to get away with paying 10% to 25% of the fair market value of the gold.

The scrap gold buyers on radio, TV and Craigs List will attempt to pay as little as 8% of the true scrap gold value. These guys lack brains. And they lack staying power! After word gets around that they cheat folks, these scrap gold buyers will be gone. On to the next “big thing…”

Not you! Be straight with everyone you meet. Follow our guidelines layed out in our “How to Start a Scrap Gold Business” and you will prosper LONG TERM!

Educate your customer. Display your wisdom about gold in a friendly manner.

Explain the scrap gold process we teach you in detail in our Gold Business Manual.

In it’s simplest terms, your customer allows you to determine the gold content of their piece. You value their item based on today’s “spot price.” [Very simple and we explain this thoroughly in our Book.] You deliver or mail the piece to a refiner; a list of refiners is included in our “Scrap Gold Startup Book.” The refiner must smelt, refine, essay, and pour it into ingots. Then this gold is resold.

We’ll teach you how to explain this process to your scrap gold seller in very easy to understand terminology.

Bottom line with our method?

  • Your customer leaves happy
  • You make money
  • Your refiner is happy. They pay you 85% to 92%+ of the “spot price.”
  • And you repeat this transaction over and over again.
  • Rinse and repeat!

Here’s a fairly typical scenario:

  • Sellers bring you 3 to 4 gold jewelry pieces
  • Average weight is probably 2 ounces.
  • Most of these scrap gold jewelry pieces will be 14K gold – that’s 58% pure gold.
  • 2 ounces of 14 karat gold is 1.16 ounces of pure gold.
  • You visit http://www.GoldIntoLoot.com, scroll down to our Scrap Gold Calculator and enter the info to get today’s scrap gold value.
  • Now, negotiate with your gold seller to accept say 50% of this value. Since you taught them about the gold process thanks to our Gold Book, this education process will be a cinch for you!
  • Sell your gold to your refiner for… let’s be conservative and say… 90%.
  • Your profit? Somewhere in the neighborhood of $410 based on today’s scrap gold price!
  • Again: Rinse and repeat MANY TIMES PER WEEK. YOU will be a happy camper! [And, so will your customers and your refiner!]

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Using Craigslist to Buy Scrap Gold

How to use Craigslist to buy scrap gold.

Craigslist.org is a great, free method to reach out to scrap gold sellers. The keys to success with Craigslist are consistency and a well written advertisement. You must re-post your ads often; at least every 30 days. Security is another issue. You want to meet a potential scrap gold seller in a location in which BOTH parties to the transaction feel safe. This could be a coffee shop, an office, your sellers home, at a gold party…

Begin here:

  1. http://www.craigslist.org/about/sites. Click on your city.
  2. Click on “Post to Classifieds.”
  3. “Service Offered”
  4. “Financial Services” or “Small Biz Ads” Experiment with this category!
  5. Complete your listing and follow the instructions at Craigslist to confirm your listing.
  6. Carefully consider revealing your phone number. This is a personal decision. Listing a phone number rather than relying on email will result in more gold buying opportunities for you. Your location and personal aggressiveness will determine whether a phone number makes sense for you. 9Note the phone number in the sample Craigslist ad we have included below.)
  7. Sample Craigslist Ad:

We buy gold, serving the Santa Ynez Valley for over 20 years. (Santa Ynez)
Turn your unwanted, unused or broken jewelry and scrap into cash in your pocket today.

Have a lot of jewelry that you don’t use? Broken pieces that you can’t use? Pieces you just don’t want any more? Turn them right into cash in your pocket that you can use !

Call or email me and get an estimate for your gold today!

Dont want to sell it? I also give loans on all gold, coins, jewelry, all of it. Get the cash you need without selling your gold!

Give me a call at 999.999.9999 or email me now.

I’m Paul. I’m one of the Oldest & Most Reputable scrap gold buyers in The Santa Ynez Valley with over 25 years as  a Confidential Collateral Lender, Gold & Jewelry Buyer and Seller.

I serve The Santa Ynez Valley and surrounding areas
Using Craigslist to Buy Scrap Gold

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Cash-for-Gold-Foot-Traffic-to-Store-Traffic

Cash for gold mobile traffic into foot traffic
Turn Mobile Traffic into Foot Traffic

Store operators in the cash for gold business don’t get this: YOU MUST figure out the mobile marketing challenge you face TODAY. Customer’s are “looking” for you on their phones. If your biz looks like crap on their phone, you just lost another customer!

I’m NOT suggesting you invest $1000’s of bucks on a “full-on” mobile friendly web site that processes customer applications, captures their bank acct. info, nabs their SS#… Hell, today, store owners don’t even need a traditional website! Go check out a company FOCUSED on building phone friendly websites for the cash for gold industry. It’s $200 one-time!

What’s one customer worth to you? Just enable a customer to FIND you on their phone and “click-to-call” your store or find your location on Google Maps!

Or, allow your prospective customer the opportunity to “search on Google” for “cash for gold zip code 99999” and discover YOU! The customer “Clicks-to-Call”, you build a relationship, and next thing you know, the two of you are at Starbucks exchanging cash for gold! Sweet!!

 

Get started at EZMobileToday.com This is a “no-brainer!” Enable your next customer to call, email or text your store.

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Maximizing Your Profits in the Scrap Gold Business

'You Remind Me of a Fat Gold Chain' photo (c) 2005, Jason - license: http://creativecommons.org/licenses/by-sa/2.0/Here’s a straight forward approach to maximizing your profits in the scrap gold business. If you’ve read our Book this may still be a good reminder. Of course our 90 page Scrap Gold Business Book teaches this in greater depth.

1) Determine the weight of the piece
2) Determine the purity of the piece
3) Determine the spot price of gold today

Gold is sold in Troy ounces. Troy ounces are divided into 20 penny weights (dwt). Small rings usually have 2 dwt – 5 dwt after removing any stones. You’ll need a small scale.

The karat value of the piece is the proportion of gold in the piece. 24 karat is pure gold. A 24 karat gold chain that weighs 10 dwt will contain 10 dwt of pure gold.

An 18 karat gold chain weighing 10 dwt contains 18/24 (75%) of pure gold.

A 14 karat chain weighing 10 dwt contains 14/24 (58%) of pure gold.

Valuing the piece:

Visit http://www.Kitco.com for today’s scrap gold spot price. Let’s
pretend it’s $1600 per ounce today to keep the math simple.

$1600 oz divided by 20 dwt per ounce = $80 per dwt.
Say we have a 18K gold chain weighing 10 dwt.
Since 18K = 75% pure gold = 10 dwt X 75% = 7.5 dwt pure gold.
7.5 dwt pure gold X $80 per dwt = $600 worth of gold in this example.

Refiners typically pay 92% – 95% of the pure scrap value to pay their fixed and variable overhead,make a profit and pay their taxes. So… a refiner might be willing to pay as much as $570 for this chain.

Gold party hosts/sponsors and retail gold dealers/pawnshops typically pay 30% to 60% for gold. Thus, this example chain might be worth $180 to $360 to them. They then sell it to a refiner for close to $570.

To make money in the scrap gold business, you have to learn how to profit with this “spread” – that is – the difference between how much you pay for the piece and how much you get from your refiner.

For a thorough discussion and graphics on “How to Start and Operate a Scrap Gold Business” consider our 90 page book at:
http://www.ScrapGoldGuru.com

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