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401k Gold

Roll Your 401k Into a Gold IRA

How to Buy and Sell Scrap Gold or Jewellery

Buying gold jewellery and selling it again for a profit is a very viable business model. As the price of gold has climbed above $1300/oz a great deal of old jewellery is now worth more than when it was originally bought and people can free up cash that they may have never realized they could generate.

There are two factors driving the buying and selling of gold jewellery business today:

  1. A difficult economy with millions of people out of work or struggling in retirement
  2. The record-high price of gold

The buying and selling of gold jewellery business has always been a good business, but nothing like it has been since 2008 when gold prices started rising as the economy began the downturn. These two facts have combined to bring millions of people out of the woodwork with gold to sell. Either they need cash, or they just want to take advantage of today’s high prices.

The global gold jewellery market is worth millions people all over the world have broken or just out-of-fashion pieces of jewellery sitting in their jewellery boxes.

Just last week my wife came across a single 18K gold erring. She lost the other earring in the set and the remaining earring has just been sitting in her jewellery box since then. I put the earring on my gold scale and it weighed 8 grams. At today’s prices that one earring was worth over $250 –which is more than she paid for the pair.

There is literally a fortune in old gold jewellery waiting to be tapped into – billions of dollars’ worth, sitting around collecting dust. But the high price of gold today is bringing it out of the woodwork. And all you have to do to get your piece of the pie is to ask.

How much can I make buying and selling gold?

Unethical gold dealers on radio and TV ask you to mail your gold in to them. They then typically offer unsuspecting customers between 10% and 20% of the value of gold.

Most pawnshops pay about 30% to 35%. And they still get customers knowing they are being ripped off coming to free up money held in old jewellery.

Legitimate dealers pay between 40% and 65%. 40% to 65% may seem low to you, but remember, the gold you buy has to be smelted, refined, assayed and poured into ingots before it can be resold. Refiners who do this will pay you between 85% and 92% of the spot price of gold.

Take the example of the lonely erring above:

The erring weighed 8 grams, and was 18k gold so was 75% (the rest is alloys to give the gold its color and hardness).
The result is 6grams of gold, which at today’s rate of ~$1350/oz or ~$44/gram is worth:
$44 x 6g = $264
Now if you bought that from somebody at 65% of the daily price, and sold it to a refiner for 95% the sum would look like:

  • Buy at 65% of full value = $172
  • Sell to a refiner at 95% full value = $251
  • Profit = $79

Now if you were able to do a number of these kind of deals from a few hours work – that can result in good revenue. And it is 100% legal!

Here are an example of the kind of gold jewellery you can easily buy and sell again:

  • Outdated jewelry
  • Broken or bent items
  • Gold chains
  • Class rings
  • Bracelets
  • Pins
  • Broaches
  • Wedding or engagement ring from an ex-spouse
  • Retirement pins
  • Watches
  • Tangled bracelets and chains
  • Wedding bands
  • Items with missing stones
  • Single earrings
  • Those giant earrings from the 80’s
  • That promise ring from the ex-boyfriend you would like to forget about.

This business model can be made to work by anybody. It is fantastic for retirees who may have friends with a lot of gold that can be converted into cash with your help, or anybody who is willing to get out there and advertise to attract customers.

While the United States has huge potential, most countries around the world can also be tapped for a comfortable income. There are many cultures that gift gold for many reasons, and people may wish to sell that jewellery to free up cash.

If you are interested in the opportunity that buying and selling gold jewellery offer then you should check out this resource:

how to buy and sell gold

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