# Selling Gold



## Anonymous (Jan 28, 2008)

My friend has a house with a small office and we are thinking of buying and selling gold.
Is the digital testing the best or the acid test?
Also, where is the clearing house or brokerage house to sell the gold? The only buyers I can find are jewelry stores but if I am going into business I want to sell it wholesale. So where would I go?
I see a lot of old washers and dryers around and was wonding if it is worth it for me to take them to the junk yard?


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## Harold_V (Jan 29, 2008)

I'm of the opinion that you should make a connection with one of the major refiners to sell your purchases. Each and every hand that it passes through is going to profit from you----so make that circuit as short as possible. 

Are you sure you're qualified to buy scrap? I don't mean to be rude, but if you don't understand what gold is about, you're a fool for jumping in on a venture such as this. Ignorance can cost you far more than you stand to make. If you have a firm understanding of the various applications of gold, you'd be far better served. 

Do you know the difference between karat gold and gold filled?

Are you familiar with plated objects, and how little they may contain? 

These are questions that you must be able to answer, otherwise you're going to get baptized by fire-----an experience you won't enjoy.

Harold


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## Anonymous (Jan 29, 2008)

I know the differences. I will use testing devices.

This is not as difficult as you make it sound. I know a lot of people who were doing this and they were not that smart.
I am sure it requires a learning curve like all other things.
I do not understand why the web directs people to things they could care less about.
My friend is quite smart he has owned businesses and real estate and wears a 24 kt ring himself.javascript:emoticon(':lol:')
Laughing
Thank you for your concern and advice


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## Harold_V (Jan 29, 2008)

evelyna13a said:


> My friend is quite smart he has owned businesses and real estate and wears a 24 kt ring himself.javascript:emoticon(':lol:')
> Laughing
> Thank you for your concern and advice



Chuckle!

Yeah, and I stood in the garage for a while, but that didn't make me a car. I fail to see a connection between having owned businesses and real estate and owning a gold ring where this is concerned. I've done all of that, too, but I know nothing about brain surgery. Do you get my drift? 

Smart people don't open doors on a business when they don't know the first thing about that particular business, no matter how clever they think they are. That's a recipe for failure. 

The very fact that you had to ask questions is a good indicator that neither of you are equipped with enough knowledge to take the leap, but then there's that old saying of being chary of giving advice. Wise men don't need it, and fools won't heed it. 

There are people out there that will capitalize on those that are not well versed in this field, where you easily become a victim. That was my purpose in alerting you. I have years of commercial refining experience and know all too well what lurks out there. 

I wish you good fortune. 

Harold


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## aflacglobal (Jan 29, 2008)

Harold_V said:


> evelyna13a said:
> 
> 
> > My friend is quite smart he has owned businesses and real estate and wears a 24 kt ring himself.javascript:emoticon(':lol:')
> ...



:lol: :lol:


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## macfixer01 (Jan 29, 2008)

Harold_V said:


> evelyna13a said:
> 
> 
> > My friend is quite smart he has owned businesses and real estate and wears a 24 kt ring himself.javascript:emoticon(':lol:')
> ...





This brings to mind one of my favorite Star Trek quotes...
"And if my grandmother had wheels, she'd be a wagon!".
(James Doohan as Scotty)


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## peter i (Jan 30, 2008)

evelyna13a said:


> My friend is quite smart he has owned businesses and real estate and wears a 24 kt ring himself.javascript:emoticon(':lol:')



Maybe your pal was owned too? 24 karat gold is not well suited for jewellery. It’s too soft and will wear or deform rather quickly.
So maybe he was sold a 14 or 18 karat piece, or maybe just "24 karat gold plated"?

:wink:


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## Anonymous (Jan 30, 2008)

The fact that people are discouraging me proves this is a good business to go into.
If this was a useless opportunity on the web I would be encouraged to take the leap.
I feel everything is very secretive about this business. No one wants to say where the gold actually ends up.
No problem, I will just do some walking into smalll shops and ask questions.

It is 24 kt gold. This is not the first ring I have seen. It is the color and the softness of the gold.
I know it is not suitable for jewelry.
That is even more the reason to wear it.
This person is not like the masses.

We are not jumping into the business. We are researching it and asking questions.
Everyone has to start from somewhere.
It does not take a wise person to know the economy in the usa will tank because of the debt.
If the economy is as good as they say why all of the debt and why does gold and all metals keep going up.
A lot of people may just not want the competition.


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## Never_Evil (Jan 30, 2008)

Asking questions is only half the battle. Understanding the outcomes and consequences is the other. It is mentioned in several places this is intended for a HOBBY. Can you take the basics from here and turn it into a business, yes, but you would really need to have a defined system in place to follow.

Right now this is costing me more to learn than what I am actually recovering. I am talking about adding up the hours it takes to dismantle computers, renting space to store everything, gas to go gather everything, chemicals involved, etc..... My very first batch of gold is 5-6 grams of recovered gold, but has taken me 2 months of stripping and cutting and refining to get it. Now by no means am I on my way to be the richest man on earth recycling electronic scrap, but I am gambling over time, it will pay off and give me and my fiance a great nest egg in the future to sell if we need to.

I encourage you to refine the gold as much as possible, but please dont get caught up with how much gold is that you ignore reality. I wish you the best of luck in your ventures, just remember to keep it based in reality.


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## Harold_V (Jan 30, 2008)

evelyna13a said:


> The fact that people are discouraging me proves this is a good business to go into.



You're a little slow on the uptake, aren't you?

You have not been discouraged-----you have been admonished to do your homework before you leap. Opening the doors on a business about which you know little or nothing is not a smart idea. I don't care if it's the buying and selling of gold, or milking cows. Smart people don't jump into unproven waters-----they get educated first. 



> If this was a useless opportunity on the web I would be encouraged to take the leap.



Again, please, with clarity. 



> I feel everything is very secretive about this business. No one wants to say where the gold actually ends up.



Preposterous! No one can predict where the gold "actually ends up". There is a wide and varied market for gold, so your knowledge, and how you are connected to the industry, dictate where it goes. If you are an unknown, you have little option other than to sell your gold as scrap to larger dealers or refiners. If you become a known and recognized refiner, you can occupy the position of such refiners and sell your product on the consumer market. Gold of unknown quality, coming from an unknown source, is generally looked upon as needing to be refined (or assayed) to prove it's quality-----although there are those that will buy gold of unknown quality in the hopes that it is fine. Jewelers take a big risk in buying questionable quality gold----traces of certain elements render it useless for their purpose, and can be the cause of lost art work when casting rings that are brittle. 



> No problem, I will just do some walking into smalll shops and ask questions.



And you hope to gain what? Small shops may be able to provide you with contact information, but small shops are rarely well informed of gold processing. They are well connected with those that have the knowledge, and, as you alluded, that information is kept quite close to the breast. 



> We are not jumping into the business. We are researching it and asking questions.



From my perspective, that's not at all what you're doing. You appear to be looking for people to agree with you, and are totally resistant to hearing anything you don't want to hear. I don't call that research. 



> A lot of people may just not want the competition.



You can believe me when I tell you that your presence in the gold market would be totally insignificant. You would not present a threat of any kind to others that may have a similar interest, not unless you set up shop on the same street. People don't travel out of their way to sell gold, they sell it where it's convenient. If you have a store front in your town, only others in your town would be in competition. 

As far as your implying that I, perhaps, am threatened by your plan, surely, you jest! I am a retired person that is retired by choice, and I have no desire to refine or otherwise pretend to be a merchant of precious metals. I am not threatened by you in any way, shape or form. What I was trying to do is save you from making some serious mistakes. It appears you're far too clever (and certainly too young to have any wisdom) to accept well directed advice, so my work with you is finished. I'll save my energy for others that are more receptive to profiting from my years of refining and marketing precious metals. 

Harold


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## banjags (Jan 30, 2008)

Harold is right... do the research first. Plan out each every step first. I too have just started a new "gold business", but spent several months researching the processes, materials, prices to pay etc. I am still researching in fact. You can never know it all.
I dont think there is really any competition when it comes to selling gold. Gold is in demand anyone will buy it from you. But researching will get you the best price.
When buying gold on the other hand... again research do not over pay otherwise your bottom line drops out. for instance go search ebay for "scrap gold" these are the prices you DO NOT pay if you want to make money. 
As of right now like never evil I have only spent money building the business, I have not made anything YET, but it coming. 

Be smart, be cautious, learn your stuff and you will be profittable.


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## Froggy (Jan 30, 2008)

Well, I dont do gold, but reading every inch of this and a few other forums, and asking as few things thet have been posted have gotten me far for almost free, im working out of my house and will continue to do so, I have also spent a little $ on books and etc that gives me a broader perspective of what others are doing,,, pay your dues, read, search then ask the the wiser old farts on here or elsewhere and they may be kind enough to help out a newb,,, and by all means enjoy what you are doing, I'm having a blast, and i'm very thankfull for this forum, thx guys,, Froggy


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## markqf1 (Jan 31, 2008)

If you cannot absorb information from others, more knowlegdeable than yourself, then you are doomed to failure.


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## Absolutsecurity (Jan 31, 2008)

I know that l*LISTENING * to Harold , Steve and GSP as well as others that have helped, has made refining a joy and quite easy - before I had to of tossed a lot of PM's away and tonight I just got my copper back after getting my silver back that I never got before and it felt really good getting everything back except some scrap steel! YOU KNOW I HAD TO LISTEN CAREFULLY and pay attention so that I could absorb refining - I have a bunch of silver, gold and copper that would have been marginally valuable untill I refined it all to 999 and now I can sell it to a local large refiner in my area that I know of. ONLY BY LETTING MY EARS OPEN and LISTENING to the SAGE wisdom from the few HIGH CALIBER people on this forum was I able to obtain the results and satisfaction I now have no trouble getting!! If I were going to start a gold or PM metal purchasing operation I would LISTEN to what my elder wisemen say and follow what made them sucessfull! :roll: :roll: 

Just my two cents! :wink: :wink: 

Glynn


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## edj1963 (Feb 1, 2008)

As a noob, I can attest to the discomfort of fire initiation, best to accept the counsel of the learned. 
As for an active attempt to dissuade you from entry to the field, nah thats not likely, the fact is MOST ventures fail well inside the first 5 years. I know it seems easy, buy low here, sell high over there....but that is only scratching the surface of what ACTUALLY takes place in the process. I know because I entertained the idea that I was going to do that with computer scrap....acquire scrap, process and sell for huge profits.....lol, then i tried it,
SLAP! 

Good luck to you, though.

Ed


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## Smitty (Feb 1, 2008)

This thread is getting juuuiiiicy. Better than The Young and the Restless. I had a friend that gave me information about his shot at buying and selling gold thru a posting in one of the local papers and that was that. One time thing just for kicks. He made a little money and decided not to quit his fulltime job. Good luck and I hope it works out for you. Like Harold says, there is no competition with anyone on this site unless your in the same town. Be worried about the Pawn Shops.


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## Anonymous (Feb 2, 2008)

This is my first time here so I hope I get it right.
As for finding a buyer,Kitco is one,and I've talk to others that are not here and they like Kitco because of there size and time being in this business. You can find others likecash4gold.com,lippincolt LLc.,and goldpaq,but remember they are buying scap gold also like old jewerly,etc.They do the same thing as a refiner would.coins dealers do too but charge you for there sevices. I hope I help in someway


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## Smitty (Feb 6, 2008)

Do you have to declare any information with the IRS when selling or buying thru Kitco and other bigger agencies? Somewhere on this site someone did mention that gold buying and selling is a short term investment.


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## Arcani (Mar 18, 2008)

i've made over 1000$ this week buying karat jewlery from two stupid pawn shops and selling it to a local refiner(98% of pawn shops send to refiner them selves). But now they are taped, and probly see the mistake they made(if they pick up a newspaper,lol) So the challenge is the steady supply of Karat jewlery. :lol:


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## Noxx (Mar 18, 2008)

Arcani, what did you ask when you called the pawn shop ?
Did you asked them if they had gold for sale ? Wasn't they already selling it to someone else ?


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## ThePierCer (Mar 18, 2008)

I don't know if you just go off on the wrong foot or not, but I would SERIOUSLY recommend listening to the words of Harold, Steve or any of the others on this forum. They freely give away their knowledge so all of us can learn from their experience. They have nothing to gain from helping us except knowing future refiners are learning from the best.


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## Arcani (Mar 19, 2008)

> Posted: Tue Mar 18, 2008 4:37 pm Post subject:
> 
> --------------------------------------------------------------------------------
> 
> ...




The refiner already paid me,its all good, i more then doubled my money. Out of about 15 shops called only 2 would sell at 6-7$ a gram, the rest where at or near the spot value of gold content( i figure they send scrap in). 
I cleaned out the one guy, and the other will probly get in trouble with his boss(he was young, prob not owner) *So this is not a deep well.*
Every year in my city there are 5-6 pawn shops closing down and 8-10 more starting up. I'v done well with other items from these shops in the past and as soon as i felt comf. testing(SC). First thing i did was look at the shops for a oppertunity and if it was'n for all your great advice i would have missed it.

I'm now looking into the whole "WILL BUY GOLD" thing. I may have to keep a list for the cops like pawn shops do(at least they do here in canada, for stolen stuff). When i get a full biz plan together i'll start a thread in "Legal Matters" for the canuks :wink: 

Thanks again all

p.s. Harold,...u will be happy to know i will be getting Hoke's book in the mail soon


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## Harold_V (Mar 19, 2008)

Arcani said:


> p.s. Harold,...u will be happy to know i will be getting Hoke's book in the mail soon



Indeed! :wink: 

Well done. 

Harold


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## Swamp Fox (Apr 10, 2008)

I noticed that evelyna13a hasn't posted recently on this thread. I hope he/she wasn't chased off, that was definitely not the intent from what I have been able to gather. The posts by Harold seemed to be aimed at answering his questions, and the same goes for everyone else.

Just my two sense, but take it as a hobby. Don't quit your job until you have enough experience to know you can actually profit from doing this as your main job and until you know you can process enough for that.

Nice one Arcani:


> p.s. Harold,...u will be happy to know i will be getting Hoke's book in the mail soon Very Happy



Mine is coming sometime in the next couple of weeks I hope. I don't plan on doing anything with refining for at least 2 years, but mainly that's because I'll need that time to finish my undergrad and want to be sure I know enough about how to do this and the chemistry behind it before I put money into it outside of resources.

Thanks all!!!

Chris


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