Every day there are advertisements on television and in magazines that offer to buy gold and silver from individuals. When you see these ads, you might wonder what it takes to become a gold and silver dealer. If this is a profession you’re interested in, you should know that it requires a large inventory and collateral.
Decide on the type of gold and silver dealer you’d like to be and if you’d like a specialty. There are some dealers who sell only jewelry, while others sell coins and rare items such as home décor, including tea pots and vases. You might also consider selling a combination of different gold or silver items.
Start visiting coin shows and other events dedicated to gold and silver in your area and the surrounding areas. It’s hard to find wholesale prices on gold and silver items, but you can often find deals at the shows. Get to the events early and keep your eyes peeled for sellers running special deals or reduced prices.
Talk with gold and silver dealers at coin shows and in your area about selling some items at wholesale prices. Some dealers are willing to work with you, but only if you’re interested in buying a large quantity. You may find several dealers willing to work with you, provided that you buy enough.
Become a United States Mint Authorized Purchaser, which gives you the chance to buy gold and silver coins directly from the U.S. Mint and sell those products at your business. It’s fairly difficult to become a seller, however, as you need $50 million in net worth and a proven history of selling a large amount of coins within a single year.
Build up your cash reserves and your inventory. As of 2009, it takes around $5,000 to $10,000 in cash reserves simply to start your business, which includes finding a selling spot, paying expenses and running the business. You’ll also need around $25,000 to $50,000 in merchandise before you can expect to see a profit.
If you have the funds available, consider buying a gold and silver business in your own area. Flea markets, newspapers and the internet are all places to look for dealers interested in selling off their entire stock.
Always get insurance on your business, even if you’re working out of your own home. Your homeowner’s insurance won’t often cover damaged or stolen inventory.