Should You Become A Scrap Gold Buyer?

High unemployment rates, increased cost of living, and rising fuel costs have many people looking to unusual places to find extra money. More than ever before, people are turning unwanted gold into cash, and agents are making a good living buying that gold. Are you looking for a full-time job or want to work part-time for a little extra cash? Should you become a scrap gold buyer?

Scrap gold buyers purchase pieces of jewelry, gold coins or dental work directly from consumers. Most agents offer from 50 to 70% of the market value of the gold by weight, so it is important for them to have the proper equipment and knowledge to accurately price the scrap metal. Electronic gold testers, scales and rare earth magnets are used to determine the weight and carat, and the gold buyer should always be aware of the current market value.

Some agents operate as independent dealers and build up large quantities of scrap to direct ship to a refinery. While independent dealers can make a higher profit on the gold they buy and resell, they are also responsible for overhead costs. Along with the initial equipment needed at startup, independent dealers have to consider storage, security and insurance expenses that might arise. Training and certificate programs are available online, as are a selection of startup packages at varying prices.

Other agents are employed by larger companies and act as representatives of that company when buying scrap gold. The income potential is more limited than that of an independent dealer, but the expenses are less. Generally, the company supplies all of the equipment, storage, security and insurance that are necessary for daily operations. Many companies will also provide certificate programs or on the job training for agents.

Scrap gold is usually not bought at jewelry stores, but rather at stores or kiosks that are specifically designed just for scrap gold buying, or at in-home scrapping parties. The collected gold is melted down and used for investment purposes, used to repair broken jewelry, or used to make new jewelry.

The amount of money you can make buying gold depends on several factors. The independent agent’s income is based on the market price of gold, customer flow and the weight of the gold the customers sell. An agent working for a larger company is often offered a base wage and commissions on sales. Although some people have made a fortune buying scrap gold, many people prefer the guaranteed paycheck.

Buy $5.00 Pre-1933 Gold Half Eagles direct from American Precious Metals Exchange.