If you are thinking of getting into the precious metals industry by buying lower and selling higher either independently via the internet or through by using other precious metal dealers as agents, it would be a good idea to start small and build up a reputation.
Having a good reputation goes a long way for companies focusing their activity as gold buyers, trust is a critical success factor in the industry. First and foremost, what you have to do is create a game plan that would keep your overheads low and your margins acceptable. In order to do this, what you need is a simple website that has crucial information about you and your company and the more important information that customers will be expecting would be names, your address, contact numbers and an email address.
Other information that you could include should be focused on providing critical information about how you conduct business, how much you offer based on the market gold spot price and links to reliable websites that have even more information related to prices and market related happenings which would give potential customers the confidence to deal with you.
Following the establishment of the above fundamentals of business, networking would be the next step. You would have to establish a distribution channel, whereby you and your company would serve as a gateway for clients. Essentially you have to make connections with precious metal buyers, especially gold buyers who would give you a standard price for every ounce of gold you offload to them at a rate that is based on a few % below the spot gold prices.
This would enable you to make an estimate how much you would be making each time you buy gold from a gold seller. The same would apply to the other precious metals such as silver, palladium and platinum.
Once you have made the connection with a few market players, focus should be placed on where the precious metals are going to come from at a few percent lower than what the gold buyers are offering, the range that you could play with when precious metal prices are stable is 10 %, and if you have sufficient capital which would give you the ability to buy gold and other precious metals at a low price and wait for prices to increase by 2 or 3 % before offloading them to the buyers, the business should be hitting break-even within a year.
This however largely depends on how much gold you will be buying, when you will be buying and at what price you will be buying. The best way to keep things afloat nevertheless would still be maintaining a good reputation, being consistent and being fair to both buyers and sellers.
Unlike most other businesses, the precious metal industry moves in the opposite direction of most markets and therefore having knowledge about economic conditions would also be greatly beneficial.
Why Go Wholesale When Shopping For Outdoor-Fabrics?
Does It Make Any Difference Doing Online Reputation Management For My Biz Brand?
You may also like
Some say the new financial world is an easier place for both experienced and novice ...
Do you have shipments urgent? Or do you have particularly difficult transport tasks you would ...