Gold jewelry has long been appealing to many people throughout the centuries due to its natural luster and beauty. Many people collect or purchase gold jewelry simply for the purpose of acquiring something appealing to wear for various special occasions. However, it’s entirely possible to buy gold jewelry for profit. The experts from First National Bullion and Coin, Scottsdale’s premier dealer of gold, silver, platinum, and palladium, explain how to accomplish this goal below if it’s one you have in mind.
Develop a Critical Eye for a Good Buy
People buying gold jewelry for profit have to have a critical eye for what tends to matter most to other buyers if they have plans to sell what they buy for profit. This list typically includes:
• How much actual gold is in each piece
• The overall quality of the jewelry—including other appealing features
• The kinds of alloys included in the mix—if you can find out this information
Keep an Eye on What Affects the Value of Gold
The next part of the process is to look at current gold spot prices and other factors that tend to affect gold value. This way, you’ll know with some degree of certainty if the piece you purchase is going to fetch a decent price. Current economic conditions and, to some extent, global events and similar circumstances also tend to affect the value of gold.
Develop a Business Plan
If you’re going to be buying jewelry professionally, the next step is to set up a business plan. This is when you’ll determine how you’ll be purchasing your gold jewelry, who you’ll be selling it to, and how you’ll be making your pieces available. One option is to start your own website.
You’ll also need to take care of any tax obligations that may be associated with starting a business. This may include setting yourself up as an LLC or a similar tax structure if you’ll be starting your own business. This is especially important if you’ll be doing your jewelry selling with one or more partners. Even if you’re not starting your own business officially, you may need to take care of tax filing based on what you end up earning from your efforts. Check with your local municipality to determine what may apply to your situation.
Determine How You’ll Be Making Money from Your Jewelry Buys
One option is to scope out potential buyers for what you’ll be selling after you make some initial purchases, which is one way to make a profit from your gold jewelry purchases. You can always buy gold jewelry and sell it for scrap, too. If you go this route, look for lower-quality pieces that still have a decent amount of gold—or at least enough to make a reasonable profit. You may also prefer to sell some of your current jewelry if you’ll need to earn some quick cash to make your initial purchases.
If you’re looking for the best place to purchase precious metals in Scottsdale, gold and bullion included, reach out to the trustworthy professionals at First National Bullion. We can answer all your questions and help you find all the information you need on how precious metals can be great investments. Give one of our experienced dealers a call today at (480) 546-5089.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.