There’s a huge market for gold, and there likely always will be. It’s also something that can be found in great abundance, if you know where to look. That’s because most people own something made of gold, or a lot of things made of gold, and much of that is jewelry that just sits around, unused. Often it sits around unused because it’s damaged in some way. When that’s the case, people are quite happy to get it off their hands for a price.
Many people make a good living buying gold wholesale in this way and then turning it around for a profit later on. The idea is to take the scrap gold and either repair it or, more likely, dismantle it, melt it down, and turn it into something better—or sell it to someone who specializes in that. This is actually quite an active market and it’s one that gets a great deal of attention.
Reselling the gold bought wholesale isn’t at all hard. You can sell it out of a shop if you are setup for it, or you can sell it online. Online sales are huge when it comes to reselling the remnants of scrap gold that’s been bought wholesale. That’s because it’s so easy to do, and because anyone can setup a business for that virtually overnight.
Before buying scrap gold wholesale, you’ll have to know a few things. Going into it without understanding the price of gold is a huge mistake. You’ll end up getting ripped off, or you’ll end up ripping off those you purchase from. That last part might not seem like a big deal, but if you want to get into the business with a good reputation, you have to keep things on the level. Ripping people off can quickly get you a bad name.
The price of gold is easy to find, but remember that it fluctuates daily. The price of physical gold bought wholesale tends to follow the market where people make purchases to invest in gold. Following the market price will give you an idea of the rest. Remember, scrap gold is worth the price of the gold, not the price of the jewelry or watches that’s been made out of it. Those things are, after all, scrap.
The dealers you sell to will be buying gold below the market value, which is how they make their profit. You’ll therefore be selling the gold to them at ten to twenty percent less than the recent market shows it’s worth. When negotiating wholesale prices, you’ll have to take that into account. As you get into the flow of this business, you’ll be able to better predict where the market will be at in the weeks ahead, which is when you’ll be turning around to sell.
Once you start buying gold wholesale for the purposes of resale, you’ll be stepping into a competitive market. You should always be wary of that competition because it will have an effect on how you do business. Don’t be afraid of the competition though, as the gold you want to sell will always be in demand, no matter what.