And do you mind enlighten the rest of us?It is well known mate just not in your native language
Cash for gold type businesses query
- Thread starter d777
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Sure although the OP has already done that- it's Joint Venture.And do you mind enlighten the rest of us?
It could also be junior varsity, I guess it depends on your perspective. Since we have an international representation here on the forum it's best spelled out.
Most people who sell scrap jewelry by the piece aren't repeat customers, so likely, they do not know who to call to get a fair shake. That's where a good advertising blitz may be effective, or a catchy name to point out that your transaction can be fast and honest and risk free.
I know that when the original cash for gold guy was on a blitz he was rumored to spend $2,000,000 a month advertising. He even had an add in the Superbowl in 2009. Obviously his advertising costs needed to be covered by his business earnings which eventually had him indicted. He did pay the worst of anyone for sure. Although the Superbowl ad was pretty funny.
If e-commerce was your specialty this can be your time to shine. Remember people want a fast and fair deal.
Here is a video exposing cash for gold's scam. inside edition video
They had a time limit on how long the customer had to accept or reject the offer. If you missed the deadline, all done with snail mail, they paid you what they offered. They got snagged by posting the mailings but not putting them in the mail for delivery until it was too late.
They had a time limit on how long the customer had to accept or reject the offer. If you missed the deadline, all done with snail mail, they paid you what they offered. They got snagged by posting the mailings but not putting them in the mail for delivery until it was too late.
Interesting stuff and exactly what I am trying to do differently. I came across this funny mini doc about the Toronto cash for gold tycoon which is funny, he obviusly made a fortune out of it
Thought I'd bump this thread given things ar eprogressing nicely with my refiner partner and I should be in the position to launch after summer. Does anyone have any other tips or resources, I;ve found very valuable advice in this thread which we are going to implement to make our business fair and competitive.
Banking is an important skill a gold buying operation needs to master. Modern gold refineries (the major's) are as much bankers as they are refiners. One mistake the startup cash for gold type gold buyers make is to price their services too high to make up for their lack of capital. Once these startups build up their capital they have the ability to hedge metals but often startups wing it. A quick $100 downturn in gold prices, which can happen pretty quickly, can bankrupt a buyer who isn't protected and is sitting on a week or two's purchases.
A lot of refiners work off of a pool account. Since precious metals are fungible, an ounce of gold is worth the same everywhere at the same time and this allows a pool account to work. To build up a pool account a refiner will leave a percentage of their gold on settlement in a pool account at the refiner. The metal in the pool account is their metal which is held at the refiner to be used at your request. That means if you have a particularly busy day and bring in a Kilo of gold, you can sell off a kilo of gold from your pool account to protect the price you purchased the goods at. When you settle that job, you simply leave the replacement kilo in pool. Depending on what types of metal you are buying, most refiners have both gold and silver pool accounts.
To simplify the accounting, I always liked to convert all of the payable metals on settlement into gold for the pool account. Then I just worked off of a gold balance.
One small caveat, big refiners can go bankrupt. Just think Republic Metals and Handy & Harmon in the early 90's. Pool accounts are useful but don't get caught in an "all of your eggs in one basket" scenario.
I am, by far, more chemist than banker. However these are skills you will need, and potentially questions you will have to ask about, before jumping in.
A lot of refiners work off of a pool account. Since precious metals are fungible, an ounce of gold is worth the same everywhere at the same time and this allows a pool account to work. To build up a pool account a refiner will leave a percentage of their gold on settlement in a pool account at the refiner. The metal in the pool account is their metal which is held at the refiner to be used at your request. That means if you have a particularly busy day and bring in a Kilo of gold, you can sell off a kilo of gold from your pool account to protect the price you purchased the goods at. When you settle that job, you simply leave the replacement kilo in pool. Depending on what types of metal you are buying, most refiners have both gold and silver pool accounts.
To simplify the accounting, I always liked to convert all of the payable metals on settlement into gold for the pool account. Then I just worked off of a gold balance.
One small caveat, big refiners can go bankrupt. Just think Republic Metals and Handy & Harmon in the early 90's. Pool accounts are useful but don't get caught in an "all of your eggs in one basket" scenario.
I am, by far, more chemist than banker. However these are skills you will need, and potentially questions you will have to ask about, before jumping in.
