Regardless of the economy or location, gold retains value. With a gold buying store, you can purchase customers' gold scraps and resell them at higher profit margins to refineries. The store benefits those needing quick cash, and you can make a lucrative profit based on the gold market.
Legally structure your business for tax liability and litigation protection. Form a limited liability corporation (known as an LLC) or a corporation for tax write-offs and personal asset protection. Seek a certified public accountant or a lawyer to establish this entity for you, or incorporate yourself through your secretary of state’s office.
Determine if any licenses are required to purchase gold. Some states may require a license to sell or purchase gold or maintain certain amounts of gold at your facility. Check with your secretary of state or insurance commissioner to determine if any licenses or credentials are required.
Choose a location for your gold buying store. Seek out areas where people will most likely to need to pawn products. Also consider areas where people may have more expensive gold they will like to sell. Have a real estate agent assist you in finding a commercial property to purchase or lease for your business.
Purchase equipment to determine the validity and purity of the gold you are about to purchase. Find gold testing equipment through retailers such as NationalJewelersSupplies.com.
Locate refineries to work with. For example, Midwest Refineries will purchase your scrap gold, which will then be melted down into bullion and other forms of gold. Locating the right refinery will allow you to receive top dollar for your metal.
You may need to obtain a bank loan or have savings to be able to pay your initial customers for their scrap gold.
Consider refineries outside the United States, as they may pay more for gold than American refineries.
- Photodisc/Photodisc/Getty Images