How to buy and sell scrap gold.
Let’s begin! First, this is not a get rich quick scheme. It is also not a few quick pages of nonsense. What this is is my knowledge of buying and selling gold!
I have been doing this for some time now, and have developed large profits by following my methods. You can do this FROM HOME and earn a substantial second income, and possibly even make this your full time gig!
In the following manual we will go over
- How to BUY
- How to TEST
- Where to Sell it!
- SCRAP GOLD PRICING FORMULA! (Jewelry TRADE SECRET!)
First, you will need to buy a few things, which will aid you in making the purchases of the scrap gold!
2. Gold Testing Equipment
This is all you will need! Some will try to tell you to buy labels and plastic bags, but those are all wastes of time and money! You just need a scale and the testing equipment! It should be obvious that you will have to ship the material to a refiner, and he most likely will provide you with the required shipping material, usually through DHL, and they come TO YOU DOOR in many cases! This is no cost to you, so no profit from the sales is taken away from useless overhead. When you contact the refiner, your first question to ask is about their shipping policies!!!
At the end of this guide, there will be a listing of the refiners that you will want to use. A discussion of where to find the scales and testing equipment is also included. The cost of these items is very small and you will recoup these costs very fast!
WHAT IS SCRAP GOLD?
Scrap can be old jewelry, dental crowns, and old dental bridges. The jewelry could be broken or in perfect condition. In your eyes, however, it is simply SCRAP GOLD! The main objective however, is to always test the scrap to verify its gold content! You then check the price the refiner will pay, buy the scrap and then sell top refiner for a profit. It’s that simple! Buy low, Sell HIGH! SIMPLE ECONOMICS!
DO NOT HOLD THE METAL FOR TOO LONG! Prices in the gold market change many times during the day! The remedy for this is to call the refiner and ask to “lock in” the quoted price for a specified weight at the time of the call! For example, if I have 120 grams of scrap 14KT, I cal my refiner and ask to lock in the spot price at that time. Say for instance that this price is $11 per gram. This is the price that I have locked in. He will honor his quote! So in the even that the next day, you check the price and it has dropped to say $9 per gram, it is not a problem because you have locked in the higher price! Be sure to check with him to determine how long he will leave the “locked in” price in effect!
WHERE DO YOU FIND SCRAP GOLD?
The main place that I focus on is the dentists in your local area! These doctors are busy people and don’t have time to fool with buying and selling their scrap! That’s where you come into play! You cal them and offer the highest price in cash for their scrap dental items! This dental gold is the best because it is a higher KARAT than jewelry gold! Many times, dentists aren’t even aware of the value of what they have and you may receive an incredible deal! ALWAYS TEST!!!
In addition, another source is local pawn shops. These businesses buy a lot of gold. They also use a refiner for the gold they do not sell. You can make an offer to buy form them directly for CASH. They will usually accept this because they would rather have the quick sale than wait for the check form the refiner! Most refiners will give the same spot price for scrap, however some time you can play the refiners! Shop around and sometimes one refiner may be paying MORE! Which means more $$$$. In addition to being paid in cash, you may choose to be paid in gold coins as an investment! Ask the refiner if they off this payment type!
A word to the wise…. you may want to check your local laws when dealing with pawn shops, as laws may require you to keep a record of purchases and sales with the business for purposes of stolen goods! For this reason my primary focus would be on the dental labs!
YOUR FIRST PURCHASE
A person calls you to sell their gold t you. FIRST, TEST THE MATERIAL, SECOND, WEIGH IT! NEXT, use the jeweler formula to get the price of scrap metal. Finally offer a higher amount than your local pawn shop or other scrap buyers. It is good practice to offer a little higher price to the public in order to break into the market, as many people have a regular scrap guy.
FOR EXAMPLE, if you know the refiner is paying $11 per gram for 14 KT; customary practice would be to offer half of that ($5.50). If you offer a little more, say $7, you still make a profit of 4 per gram you refine, and gain a valuable customer for the long run. However, this is all up to you and if you are a true salesman and can negotiate a low price, then you profits will increase!!!
Where do you find someone who wants to sell?
A simple ad in your local paper of trade saver magazine will suffice! When called, you can travel to them and pay after testing to verify! Even better, you can set appointments in your location of choice and have them come to you if you choose! This is what makes this an IDEAL HIOME BUSINESS!
If advertising isn’t for you, look on ebay! When bidding for a listed weight, check the spot price constantly! Then start your bidding near the end of the auction! Keep checking you spot price! If you win have it shipped to you the fastest way possible! you should have already tried to lock in your spot price as discussed earlier! When the mail arrives send it back out to the refiner and get ready to count your profits!
THE HIGHER TH GOLD PRICE, THE MORE PEOPLE WANTING TO SELL THEIR SCRAP! THE LOWER THE GOLD PRICE, THER ARE STILL PEOPLE WHO NEED CASH FOR THEIR GOLD! YOU WIN IN ANY MARKET!
HOW TO TEST!
There are some tests that you must do to verify the gold content. This is done according to the type of tester you have. If you have an acid test kit, you will rub the old gold metal on to the rubbing stone. This will give you a gold mark on the stone. You then use the different acids to see what the content is. Further discussion is later in this manual.
You can also buy an electronic tester that does not require the use of acids, and it will give you an exact answer. The instructions are with the tester and are very simple to use, but cost more!
Remember that some base metals are gold plated and heavy plating can fool you! Check for hallmarks on the pieces!
When testing, keep your spot prices for each KARAT weight in the back of your head so that you can easily be ready to determine the value of what you are working with!
WEIGHING THE GOLD
So far you have learned sources and ways to test. Now, ways to weigh! THAT’S WORDY! ok.
You can use electronic scales or the manual triple beam scales. The electronic scale is simple and light. This should be the type you use even though the other scales are an option.
First, this may sound simple, place the gold on the scale. Be sure you have the scale set for either grams of pennyweight (DWT). Refiners will either quote you a price in grams or DWT. This makes a difference in your payout price so take heed! There are 20 DWT in an ounce of gold and 31.103348 grams in an ounce of gold. The scale you decide to buy will come with operating directions discussing the different ways to measure!
ADVERTISE and stay with it! Gold has seen record highs! It is your guess where the market is going! Hopefully higher, but you make $$$$$ in any market! Always remember not to hold onto too much metal without a locked in spot price! Or you will be subject to the daily market swings and this can effect your profits!
Remember your spot prices when going into a meeting to purchase a client’s scrap! Then sell what you got ASAP to the refiner! CASH YOUR CHECK! some even pay through paypal for instant CASH!
I will list refiners who have these materials (SCALE, TEST KIT). You can also try to find these items on ebay or on the internet by searching jewelry supplies!
There is nothing more exciting than opening your mail and seeing those checks come in! Or seeing a freshly minted GOLD COIN if you choose that payment method!
Good Luck and make some $$$$$$
Northeastern Metal Corp.
21 orchard SR/Stamford, CT 06902
130 LENOX AVE unit #23/ Stamford CT 06906
This one is the best in my opinion! Payouts are fast and fair! offered prepaid mailers!
4471 Forest Ave. Waterford, Michigan
Will accept any size scrap! payout within 5 days!
FREE SCRAP PICKUP
Free pickup and fedex pickup!
Look up other in yellow pages if you want to ship around! These work best for me! You may have a local refinery in your area and not know it!
HOW TO TEST THE METAL
When using the acid testing solutions, you must be careful not to spill the acids or come in contact with your skin. They are in a weak solution but can still burn you! Use small amounts on each piece.
First take the gold you wan tot test, on the black stone that comes with the kit, rub gold hard on the stone. you will see a gold line on the stone. then take small drop of 10KT acid and drop on the line. If the acid dissolves the line, it is 10 kt of nothing at all, of the line stays, it is at least 10KT, you make a new mark on the stone and test with the 14kt solution and so on till you figure out what it is! ALL these details will be on the test kit!
Electronic testing is different. They are VERY simple to use and don’t involve the acids. These involve the ways in which different gold content conducts electricity. This is how these machines test the gold! Your tester will come with instructions depending upon the model you choose!
SCALES and ACID TEST KITS
Several types of scales will suffice. The most efficient scales however are the portable digital scales! You can carry these with you and set up in no time at all! just weigh and pay and make some $$$$$$$$$$$
The acid test kit is sold on ebay! Make sure you get the three acids for the 3 KARATS, 10, 14, and 18! All you need are these solutions and the stone! so don’t be fooled into buying a fancy carrying case, unless you prefer!
GOLD PRICING FORMULA
This is the jewelers secret!
GOLD PRICE X 95% X 37% = OZ PRICE/DIVIDED by 20 = DWT. PRICE
EXAMPLE assume market price is 300 per ounce
$300 X 95%=285 X 37%=105.45 for an ounce of 10KT
then divide by 20=$5.27 per DWT This is what a refiner will pay you! You would then offer to buy from a client at half this. The difference when you sell if the profit!
GOLD PRICE X 95% X 55% = OZ PRICE/DIVIDED by 20 = DWT. PRICE
GOLD PRICE X 95% X 72% = OZ PRICE/DIVIDED by 20 = DWT. PRICE
Check the daily spot price at www.kitco.com!
If you need a scale email me and I may be able to get you one!