I know that some of you will disagree with me, and think I’m a thief,
but, you’ll have all the sellers you can afford at a 50% margin of
the refinery’s payout. I’ve had hundreds refuse my offer, only to
return in an hour or 2, ready to sell, after making the rounds to all
the other local gold buyers- and then send their friends and family
in later. And if people bring in gold coins(bullion) like South
African Krugerands, US gold coins, Canadian Maple Leaf coins, etc, I
get almost every gold coin offered to me at 20-30% under market.
Right now, I’m paying $18/dwt for 14k scrap, 35 cents a dwt for
sterling silver scrap, and 13$ each for silver dollars. The average
hotel type gold buyers are paying around $13/dwt for 14k, so I’m way
over those guys.
Its a great way to accumulate a lot of diamonds too. I have about a
hundred 1/4 ct to 1/2 ct diamonds, all for a fraction of normal
wholesale prices. This week a lady came in needing a 1/4ct replaced
in her 3ct TW ring, I had an excellent high grade match in stock,
got $600, paid about $50 for it. Also have saved up about 300 cts of
diamond melee- all sizes and qualities. Loads and loads of colored
stones, antique pocket watches, collectable costume jewelry. Even
bought a bunch of bottles of high-end booze(retail $200/ bottle type
of stuff) for $25 each from one guy. When I come across any nice
quality-made pieces(not the average shlock stuff), I clean and
polish, tag it, and put it in the case for sale as a used piece.
People love a $1000 ring for $600, that I bought for $100.
At these margins, my biggest problem is having enough cash on hand to
keep paying out, while I’m waiting on the next big check from the
refinery. During the last 3 yrs., I’ve managed to put away(for later
sale) about 35 ounces of gold coins, as well as approx. 100 pounds of
silver coins, ingots and scrap sterling. Besides the several thousand
dwt of gold scrap sold to Hoover and Strong at average 99% of market.
All this without ever running any paid advertising, just a few signs
in my windows(facing a busy carwash), wall signs inside the store,
and word-of-mouth advertising. Did it all with start up money
borrowed from a credit card. Now just waiting for the markets to top
out, and cash in.
Decades ago, during the last big gold rush, I worked for a jewelry
chain in a mall, and daily, I watched people pour into a coin shop
down the hall, to sell their gold. I saw lines of 200-300 people at a
time, all waiting to sell the stuff they didnt want anymore. This
time, I figured it might as well be me with hoards of folks beating a
path to my door.
Dont be afraid to make a profit. ‘Profit’ is not a dirty word. The
’big gold rush’ has slowed somewhat now, but there’s still plenty of
money to be made.