Scrap Gold Recycling - How You Can Profit

According to the World Gold Council there waschance to make some excellent profits just by
1,212 metric tons of old gold scrap recycled inbeing the middle man. You simply buy from
2008. This accounts for over one third of theindividuals and resell it to a refinery.
supply. Learn where it came from and how youYou can actually get started by operating right
can profit from this phenomenon.out of your house and, depending on your
Over the past year gold has been on the mindsambitions, it can grow into a full time storefront
of many people. This is due to it's rise in value.operation.
Anyone who has unwanted gold laying around,Getting started on a small scale is rather
specifically jewelry, is rushing to cash in on theinexpensive. Just place a classified in your local
high returns they can receive.paper and hand out some business cards. When a
The evidence shows this because already in theseller contacts you, simply meet with them right
first two quarters of 2009 there has been nearlyat your kitchen table, go to their house, or meet
1000 tons recycled and sent to refineries, almostthem at a coffee shop.
as much as the entire year of 2008. That meansSeveral tools to analyze the gold are necessary
the volume has nearly doubled from last year.and can be purchased from any jewelry supply
This phenomenon creates an excellent opportunitycompany. You will need a 10X jewelers loupe to
for investors looking to buy and forinspect the items, an acid test kit to be sure the
entrepreneurs looking to start up a gold buyinggold is authentic and a scale to determine the
service.weight.
The advantage for investors is the ability toOnce you know the exact quantity they have,
obtain it at a lower price. Instead of paying thesimply make them an offer to buy. It's best to
normal spot price plus a premium, when buyingoffer about 50% of the spot gold value to
bullion coins and bars, they can buy scrap goldprotect yourself against loss, just in case you
much lower. Then they can hold it in it's originalmake a mistake in the testing process.
form or trade it in for bullion at any preciousAfter you have made the purchase you can send
metals refinery.your scrap gold to the refinery of your choice.
For entrepreneurs, it offers a very profitableThey will assay it and within a few days you will
opportunity to started in the service business ofreceive a check.
recycling gold.As I stated earlier, in 2009 there was nearly as
Almost everyone has some amount of gold thatmuch scrap gold recycled in just the first two
they no longer want or need and are willing to sell.quarters as there was in the entire year 2008.
In fact, the price is so high that many people areThis spells opportunity for those looking to
selling it at a higher price than they purchased itcapitalize on a trend that will continue for a long
for at retail, especially if it was bought prior totime.
2000.The question is, how much of the 1,212 tons will
When starting a gold buying service you have theyou buy?