Practical Guidelines for People Who Want to Enter the Scrap Gold Buying Business

Buying scrap gold sounds like an odd business idea at first because who would scrap something so precious? The term is misleading because gold is valuable and nobody throws it away. Yet every day buyers make a pretty profit, creating an additional stream of income, by purchasing scrap gold from a wide variety of sources.

SOURCES OF SCRAP GOLD 

Scrap gold is unwanted gold, gold that is damaged, unused or has come to the end of its functional lifetime that can be melted down and repurposed. It can include jewellery from ex-partners, unwanted gifts, broken and tangled chains and bracelets, dented rings, old-fashioned or outdated jewellery or inherited but rarely worn jewellery.

There is also gold in many computer components such as CPUs, memory chips and motherboards. During the 1990’s when gold prices were much lower, computer manufacturers used larger quantities of gold to produce these components. Even though the computers themselves may no longer be functional, that gold is still valuable.

Gold can also be found in dental appliances, gold teeth, coins, nuggets and gold dust. All of these items can be purchased by savvy, resourceful people.

Scrap Gold

TOOLS OF THE TRADE 

The number one tool needed when considering buying scrap gold is knowledge. There can be a steep learning curve when it comes to buying gold and many pitfalls await those who rush in without doing their homework. The other tools needed are an accurate set of digital scales, gold purity test kits, and some ready cash to snap up the bargains as they arise.

IDENTIFYING GOLD PURITY 

The most expensive and purest gold available is 24 carat which is 999.99 pure. Eighteen carat is 75% pure, 12 carat is 50% and there are other various gradations of purity. The actual purity of gold is vital to know when purchasing as all gold is not valued the same. Paying a 24 carat price for 12 carat gold will soon send a fledgling gold buying business bust.

One needs to become skilled in using a gold test kit, which involves putting acid in contact with gold and noting the colour and reaction to determine the purity of the gold.

SPOT PRICE AND WEIGHT 

Scrap gold should be weighed and calculated against the current spot price to determine a profitable buying price. The best scrap gold prices online in Melbourne are easily found. Smartphone apps can easily do the calculation but using highly accurate scales is essential, as is allowing for the weight of included stones, non-gold settings or impurities that may taint the gold.

SELLING AND REFINING 

The most important aspect of the gold scrap business is finding a trustworthy and reliable buyer to purchase your accumulated gold for the best price. These buyers are experts at valuation and handle any refining that needs to be done to smelt the gold.

Goldbuyersmelbourne.com.au come highly recommended;and building a relationship with a bigger buyer is a crucial piece of the puzzle that can often determine one’s ultimate success or eventual failure.

Scrap gold can be found on eBay, at deceased estates, garage sales, auction houses and police auctions. Buyers often place wanted ads in classified pages and even on local second-hand Facebook groups.

An interesting fact is that virtually all the gold ever mined and refined throughout history is still in existence, somewhere. The trick for those interested in buying scrap gold is to find those untapped sources and as always, buy low and sell high!

Blogger-in-Chief here at RetirementSavvy and author of Sin City Greed, Cream City Hustle and RENDEZVOUS WITH RETIREMENT: A Guide to Getting Fiscally Fit.

2 Comments

  1. “The most important aspect of the gold scrap business is finding a trustworthy and reliable buyer to purchase your accumulated gold for the best price.” Definitely the hardest part about this business. Need to get the best price to make sure nothing is being left on the table!

    • Thanks for stopping by, my friend.

Leave a Reply

Your email address will not be published. Required fields are marked *