setting up a we buy gold and silver company

Hello I have been stacking for a couple of years now so I know most of the ins and outs of buying from a slacker point of view. I have recently want to buy scrap gold and silver but the question is how much below spot or how much below margin do you buy at any help is much appreciated.

 

plenty of places pay spot or slightly higher for investment grade bullion (as defined by the ATO) and spot plus 5% for anything under 24k.

 

This is not the sort of company you can just jump into.
You would need a large amount of capital to begin with.
What happens if you open and are bombarded with customers?
Are you going to have the 10s of thousands available in cash to part with in exchange for the gold,silver and other goodies?
You really need to test the waters and maybe start out small (as a non company).
There was once a "we buy gold" on every other street, they have disappeared for a reason.
If you have money to invest and want a good turn over and a never ending supply of customers with little CASH outlay then start a lawn business.
Probably one of my favourite enterprises to date just 200 customers a month is going to bring in $14000 a month or so.
I had a number of Mr. Greens that i eventually passed off , but used to love getting out in the sun and loved the smell of grass.
+ you get the cashies during your runs that pay for the beer/weed at the end of the week .

 

I run a very lucrative removals bussiness so cash investment is not so much an issue and I'm not starting massive I have bought a selection of rings and some silver this week from people who got in touch starting small to test the water we have only one gold buyer around here so competition is limited in this area .

 

That is good to hear
You never know when someone is going to pop in and have $30,000 worth of gold to sell you.
Having this sort of cash on hand is what i mean.
I am sure everyone here can pull a few grand out if needed , but $30,000 one day and then another $20,000 the following day is very possible.
It would pretty much be the end of business if you had to turn these sort of clients away.
Starting small is a great idea, these things can often grow themselves.
But large CASH capital is essential.

 

Not a business for a slacker

 

Sometimes having a little bit of information can be very dangerous.

 

just go for it mate

 

Agreed... just go for it... do your research before you begin... then start making some wins (and losses)... life is one big learning experience.

 

Are the current gold buyers affiliated with any criminal organisations? I wouldn't want to start annoying the wrong people, and usually where there are large amounts of money to be made in a relatively small field there will be competition, every customer you get will have been taken away from the other gold buyer.

 

Most of the gold buyers I've met are quite nice, and I doubt they would be affiliated with any criminal organizations.

The precious metals industry is highly regulated and monitored - I imagine there would be better industries for organized crime to be involved in.

 

Just be cautious when dealing with dealers that offer over spot for scrap gold......some charge for testing, charge an admin fee....and before you know it, your back to spot or a little less.
Its all an advertising gimmick to get people in the door.....at the end of the day most dealers would not survive if they started paying 5% over spot.

Also dealers need to (are suppose to) hold gold/silver buys for 10 day......offering anything over spot is heading into dangerous territory and will eventually result in you closing your doors.

Imagine buying $20k of gold and holding it for 10 days and you have just paid 5% over spot for it and spot moves down .5% one day and another .2% another day.
This scenario is extremely possible.....then you need to sell it to the refiners who offer you a certain % for your gold plus refining cost ..... as I said before, dangerous territory

As with any business you need to do your homework.....businesses have over heads.

 

I am interested in this space. Please email me if it suits. Regards,

 

We have a Sydney CBD buyer who pays 5% above spot with no extras for testing or admin fees.
As long as he is in business, it can only be good for Sydneystackers because every member knows they have a floor for their gold ( spot for 999, spot + 5% for anything under 999) with no risk.
As for these gold buyers being forced to hold onto their purchases for a minimum of 10 days and risking a price meltdown .....all they have to do is sell the equivalent quantity of the gold they bought 10 or more days prior.

 

Are you a licensed gold buyers ?

Last time I checked, when a licensed gold buyer buys gold/silver from the public they need to hold goods for 10 days ...... I supposed you could call it being forced but its law

Maybe Sydney is exempt from the rest of Australia :/

Would be curious to hear from a Sydney gold buyer to see if this is the case.

 

Sydney is the hardest on keeping items for how ever many days
You need to take photo's & description of every item you buy
The only "license" needed is a second hand dealers license

 

I don't think you fully understand what Aurora was suggesting.

Yes, they still need to hold the good for 10days (or whatever the amount of time is) - but they can sell/refine an equivalent amount of gold (i.e. their trading stock) to hedge against any gold price movement.

 

Yeh, I know its called a "second hand dealers license" , I was just being lazy by calling it a license

Like I'm sure your already aware, the police and ATO are monitoring dealers on a regular basis and as a result the above recording process that you stated is pretty much a minimum standard expected.

 

I'm heading down to Sydney in August, would love to catch up and have a chat over a beer (I'll get the first round )
Ooops and Leny7888 too.

 

Would love to come for a beer shame I'm in the UK