Looking for a gold buyer/refiner in the UK

[d777]

Hello all, I am in the process of settting up an online (cash for) gold buying business in the UK. I am an expert in marketing/ecommerce and know how to get traffic, clients and build a brand, it will mainly be online where people post in the gold in pre paid envelopes etc, with a few different USPs to others on the market. I was going to use a 'refiner' (they weren't really a refiner tbf they would sell it on to a refiner) who would separate, test and sort the gold, film the process and pay us same day - but I am not sure they can do what we require afterall and it needs to be a trsutworthy company who are fast and have the infrastructure to handle volume. I was able to have the customers parcels sent directly to them and they would do the above, but I would also be able to keep back some resellable pieces, so it needs to be a bespoke/personable process rather than dealing with a large refiner like Pressmans etc who can cannot do the bespokeness of what we require. I have toyed with doing this part ourselves, testing, sorting, weighing, collating and then selling in bulk to a large refiner but it would be quote a process and require xrf gun, insurance etc and would also be cash flow intensive as we would have to pay out the customer same day. I am open to suggestions on how I go about doing this, either using someone as mentioned (who was paying 97-98%) or doing it ourselves if there is an easier way to do this, with volume.

Happy to hear thoughts and would appreciate any advice.

 

[nickvc]

I fear your search will be in vain , to sort ,test and pick out saleable items from each parcel and pay individual lots comes at some cost so I’d have parcels sent to you so you do that part.
I would suggest setting up a melting room to be able to ship known assayed bars, instead of an xrf gun a file and testing acids would be a lot cheaper to start , doing this will see a much better return and quote a 3 day return to customers to allow for the weekend.
What you are asking is for someone to do all the work for a small return while you just sit back with no expenses and little financial risk with a guaranteed percentage in your pocket, now that to me seems a one sided transaction and I wouldn’t do it.
I know you are going to have costs for marketing , postage and premises but this is a business that’s highly cash hungry so if your pockets are a little short of the necessary investment or the banks are been hesitant then think of another business or start small on your own in an office with scales , acids and a file and build from there .

 

[d777]

Good points. I have toyed with the idea of oing it myself but was concerned about insurance/timings to pay customer etc - but I can get it funded somehwat and could sort, weigh, test and then pay customer whilst not waiting for the cash from a refiner.

 

[4metals]

I was thinking we hashed this out rather thoroughly on this thread but in terms of doing this with the turn around you desire and the ease of testing you need, the only option involves an XRF device. Everyone you would consider the competition in business has realized this already.

 

[Platz]

Im sure someone would do it for a big enough piece of the pie; 97-98% sounds good for mixed scrap tbh

 

[4metals]

Im sure someone would do it for a big enough piece of the pie; 97-98% sounds good for mixed scrap tbh

2 1/2% gross profit. And paying that out for someone bringing in 2 rings and a 3 gram chain. Surely you jest!

 

[d777]

I was thinking we hashed this out rather thoroughly on this thread but in terms of doing this with the turn around you desire and the ease of testing you need, the only option involves an XRF device. Everyone you would consider the competition in business has realized this already.

If i were to start small as a hobby, with a 'bankroll' to pay out the customer fast (after testing it myself) prior to selling the gold itself to a refiner I could do this speedily. My main aim for this buiness has changed somewhat, initially I was only in it for the melt purposes and making a margin, but now I am more into the hobby/treasure hunt aspect of it whereby I can resell anything that I think holds value from a vintage standpoint/can be fixed, I have a route to market to sell these items. The pure melt value I would just keep to oneside in bulk until I had enough to sell on to a refiner to then refill my 'bankroll' to pay customers out.

My question is really if I were to do this myself (having never done it before), what type of equipment do I need, I assume it looks like this:

1) precious metals trade approved digital scales, something like this: https://www.quicktest.co.uk/collect...01g/products/620g-01g-ohaus-sjx622m-ohaus-620

2) acid gold testing kit, something like this: https://www.quicktest.co.uk/collect...um-steel-and-also-8ct-and-highzinc-9ct-troy-5

3) something like this gold tester to make sure 1) is accurate: https://www.quicktest.co.uk/collect...s/kee-electronic-gold-tester-model-m509gm-kee

4) some sort of loup

5) what else am I missing?

I am willing learn as I go, and I have funds to start it up generally along with a 'bankroll' to float to pay customers quickly.

Just need some advice on what things I need.

TIA you've been most helpful

 

[nickvc]

I would advise you obtain some known carat scrap to get used to the expected result.
Been in the UK you will mainly encounter hallmarked items and the assay will be plum or above in most cases but getting used to testing is a good thing when you encounter non UK markings.
Another thing you might find handy is a diamond tester and an ultrasonic to clean the jewelry up.

 

[d777]

I would advise you obtain some known carat scrap to get used to the expected result.
Been in the UK you will mainly encounter hallmarked items and the assay will be plum or above in most cases but getting used to testing is a good thing when you encounter non UK markings.
Another thing you might find handy is a diamond tester and an ultrasonic to clean the jewelry up.

Thank you yes both of those would be needed so will add to the list.

If anyone else has suggestions I'm all ears.

 

[GoIdman]

If i were to start small as a hobby, with a 'bankroll' to pay out the customer fast (after testing it myself) prior to selling the gold itself to a refiner I could do this speedily. My main aim for this buiness has changed somewhat, initially I was only in it for the melt purposes and making a margin, but now I am more into the hobby/treasure hunt aspect of it whereby I can resell anything that I think holds value from a vintage standpoint/can be fixed, I have a route to market to sell these items. The pure melt value I would just keep to oneside in bulk until I had enough to sell on to a refiner to then refill my 'bankroll' to pay customers out.

My question is really if I were to do this myself (having never done it before), what type of equipment do I need, I assume it looks like this:

1) precious metals trade approved digital scales, something like this: https://www.quicktest.co.uk/collect...01g/products/620g-01g-ohaus-sjx622m-ohaus-620

2) acid gold testing kit, something like this: https://www.quicktest.co.uk/collect...um-steel-and-also-8ct-and-highzinc-9ct-troy-5

3) something like this gold tester to make sure 1) is accurate: https://www.quicktest.co.uk/collect...s/kee-electronic-gold-tester-model-m509gm-kee

4) some sort of loup

5) what else am I missing?

I am willing learn as I go, and I have funds to start it up generally along with a 'bankroll' to float to pay customers quickly.

Just need some advice on what things I need.

TIA you've been most helpful

hi there,

I think you are approaching this business from the wrong side.....

Your biggest enemy in this field is....trust....!!!!

I would start small....buy and sell cheap stuff, carat scrap, e waste, make yourself a brand in the business....if someone would need something they are working with, you should be the first in their minds to appeal to...

While doing buy and sell, i would learn the recovery, testing and melting and working with different type of materials, so once i have enough capital to invest, have some customer base that guarantees cash flow if needed (by buying stuff from you), i would slowly invest in equipment to test, a place where i could work legitimately, and set up at least a self employed status to be able to work with bigger companies and so on....

This is a slow process but if done correctly, you make yourself a name and brand in this businees, then you can turn to whatever your initial idea was to buy and sell gold...

Until then, no-one will trust you with their valuables....because....what did you do to prove them you can be trusted?

But this is just an opinion, please treat it accordingly...

be safe

Pete

 

[anachronism]

hi there,

I think you are approaching this business from the wrong side.....

Your biggest enemy in this field is....trust....!!!!

I would start small....buy and sell cheap stuff, carat scrap, e waste, make yourself a brand in the business....if someone would need something they are working with, you should be the first in their minds to appeal to...

While doing buy and sell, i would learn the recovery, testing and melting and working with different type of materials, so once i have enough capital to invest, have some customer base that guarantees cash flow if needed (by buying stuff from you), i would slowly invest in equipment to test, a place where i could work legitimately, and set up at least a self employed status to be able to work with bigger companies and so on....

This is a slow process but if done correctly, you make yourself a name and brand in this businees, then you can turn to whatever your initial idea was to buy and sell gold...

Until then, no-one will trust you with their valuables....because....what did you do to prove them you can be trusted?

But this is just an opinion, please treat it accordingly...

be safe

Pete

Well put Pete.

Jon