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Old 04-22-2014, 08:43 AM   #1 (permalink)
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Default Has anyone here done the gold-buying business

Hey all,

I have a buddy who has a card and comic shop and he has offered me the opportunity to rent a part of the shop (translation I pay 1/3 of the rent and I get 1/3 of the space) to sell coins.

I floated setting up a cash for gold operation. Now I understand the business itself and I have all the tools and knowledge to sniff out phoney baloney, so the warnings on buying fake stuff are welcome, but I am well aware of the b.s. out there.

What I am curious about is if anyone has experience in this and if with the value of metals cratering this is still a viable business model. I have a buyer who will take all the gold I can get for 95% of spot price, so if I buy at 70% that still is a hell of a profit.

Has anyone else ever done this and is this the sort of thing you can hire someone to handle the storefront or am I really committing to making this a f/t gig.
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Old 04-22-2014, 09:01 AM   #2 (permalink)
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Oh, my buddy's theory is that the degenerates will sell gold and silver to me and spend the cash on wax, which is an interesting theory.
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Old 04-23-2014, 09:02 PM   #3 (permalink)
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I do it but I pay a lot more than 70%
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Old 04-24-2014, 12:54 AM   #4 (permalink)
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I dont know about 70 percent as a steadfast rule. I guess many cash for gold places are around 70-80 percent and lower but the general public is probably more aware about metals than they ever have been. Even the desperate folks are doing their homework and will shop around for the best price until they have no other choice but to sell. For bullion and some coins there is no way you are getting consistent sellers at 70 percent unless they have a habit, need an operation, are avoiding foreclosure or simply have no idea with whats going on. The margins can become quite thin sometimes. Just my two cents.
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Old 04-24-2014, 09:55 AM   #5 (permalink)
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I do it but I pay a lot more than 70%
Do you have a physical location or are your a mobile buyer? Around here the rule of thumb seems to be 70%.
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Old 04-24-2014, 08:02 PM   #6 (permalink)
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Agreed, the number of suckers that are willing to sell to a 'cash for gold' place are dwiddling. Anyone with half a clue about metals is well aware of the well earned rip off reputation of 'cash for gold' places. Sorry to say, but if you're paying 70% you'd be in the rip off category too. Metal dealers operate within a very small margin.
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Old 04-25-2014, 12:40 AM   #7 (permalink)
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Agreed, the number of suckers that are willing to sell to a 'cash for gold' place are dwiddling. Anyone with half a clue about metals is well aware of the well earned rip off reputation of 'cash for gold' places. Sorry to say, but if you're paying 70% you'd be in the rip off category too. Metal dealers operate within a very small margin.


I guess I see this differently...no one held a gun to their head to come to his place, no one held a gun to their head to sell at 70%...so why is he a ripoff...and just an fyi...fake stuff is out their but id be more concerned about the stuff being stolen...thieves don't care if they get 50% its all gravy
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Old 04-25-2014, 04:49 PM   #8 (permalink)
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Agreed, the number of suckers that are willing to sell to a 'cash for gold' place are dwiddling. Anyone with half a clue about metals is well aware of the well earned rip off reputation of 'cash for gold' places. Sorry to say, but if you're paying 70% you'd be in the rip off category too. Metal dealers operate within a very small margin.
You do realize I can't sell to the big companies for spot price, so I have to buy somewhere around 70% and sell for 85-90%. I would have overhead etc.

To call a business a ripoff because they make a profit makes me ill. Its a symptom of the "I should get everything free because I exist culture" that has been fostered for the last 13 years or so.

If you don't want to take 70%, go ahead and sell to the big companies, see what they'll give you, my guess is it is probably less.
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Old 04-26-2014, 11:47 PM   #9 (permalink)
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You do realize I can't sell to the big companies for spot price, so I have to buy somewhere around 70% and sell for 85-90%. I would have overhead etc.

To call a business a ripoff because they make a profit makes me ill. Its a symptom of the "I should get everything free because I exist culture" that has been fostered for the last 13 years or so.

If you don't want to take 70%, go ahead and sell to the big companies, see what they'll give you, my guess is it is probably less.
You asked for opinions. You got em and you don't like it. Don't shoot the messenger. I'm not sure what made you go off on an 'entitlement' spiel, but you obviously don't have a clue about the business that you are thinking about getting into. It's a ripoff offering price because it isn't competitive. It may be competitive in the 'cash for gold' world, a business model that preys and relies on clueless sellers. You don't have to "sell to the big companies" to get a real price for your metals. Two of my currency dealer friends also deal in metals. They buy up to 5% below and sell at 5% over. Those are the real margins in the metal dealer world. It's all about volume. Good luck preying on little old ladies, you don't have to screw people over to survive.
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Old 04-27-2014, 08:15 AM   #10 (permalink)
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You asked for opinions. You got em and you don't like it. Don't shoot the messenger. I'm not sure what made you go off on an 'entitlement' spiel, but you obviously don't have a clue about the business that you are thinking about getting into. It's a ripoff offering price because it isn't competitive. It may be competitive in the 'cash for gold' world, a business model that preys and relies on clueless sellers. You don't have to "sell to the big companies" to get a real price for your metals. Two of my currency dealer friends also deal in metals. They buy up to 5% below and sell at 5% over. Those are the real margins in the metal dealer world. It's all about volume. Good luck preying on little old ladies, you don't have to screw people over to survive.
Who do they sell to that they can get 5% over, I don't know anyone buying at that rate? If I could sell at that rate I could by higher, but my buyer is generally paying 80 to 85% spot price on junk gold and silver. It makes sense as melting that stuff doesn't sound cheap.
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Old 04-27-2014, 09:00 AM   #11 (permalink)
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To everyone calling him a ripoff I find that comical. He is a for profit business. You have no problem allowing Walmart an insane profit but this guy making 20 to 30% margins is unethical? Get a grip
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Old 04-27-2014, 09:17 AM   #12 (permalink)
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The LCS i work at PT has a coin showcase..... in the last 2 years i can count on one hand how many youngsters have traded in silver or gold for wax... That number is 2. When silver was $40 per oz two years ago we did great business buying and selling daily. Since then. literally dead as dirt!. Seems like the only time we sell silver dollars is around the holidays, we use to stock ASE's along the newly released presidential dollars and state park quarters by the roll,... today, we maybe get 4 of each new coin in to re-sell. A ton of factors would determine how you do. Good luck. You may try it out for like a 3 month trial to see if it would work, I may be cautious of jumping in on a year lease or something long term. Let us know what you decide and how it works
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Old 04-27-2014, 03:48 PM   #13 (permalink)
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The LCS i work at PT has a coin showcase..... in the last 2 years i can count on one hand how many youngsters have traded in silver or gold for wax... That number is 2. When silver was $40 per oz two years ago we did great business buying and selling daily. Since then. literally dead as dirt!. Seems like the only time we sell silver dollars is around the holidays, we use to stock ASE's along the newly released presidential dollars and state park quarters by the roll,... today, we maybe get 4 of each new coin in to re-sell. A ton of factors would determine how you do. Good luck. You may try it out for like a 3 month trial to see if it would work, I may be cautious of jumping in on a year lease or something long term. Let us know what you decide and how it works
I'll keep you guys updated. What is great about being in Central Pennsylvania (AKA Pennsyltuckey) is that there are a lot of doomsday preppers and the like around here so selling silver and gold is fairly easy. Its the junk silver and gold that is tough to move.

I could put 100 Morgans in my buddy's showcase at $29 a pop (as long as they were relatively clean) and they'd be gone in a few days.
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Old 04-27-2014, 04:27 PM   #14 (permalink)
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I'll keep you guys updated. What is great about being in Central Pennsylvania (AKA Pennsyltuckey) is that there are a lot of doomsday preppers and the like around here so selling silver and gold is fairly easy. Its the junk silver and gold that is tough to move.

I could put 100 Morgans in my buddy's showcase at $29 a pop (as long as they were relatively clean) and they'd be gone in a few days.
just a few days... WOW! trade you locals for a few days in that case LOL. That's great
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Old 04-27-2014, 04:38 PM   #15 (permalink)
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just a few days... WOW! trade you locals for a few days in that case LOL. That's great
The negative is that the KKK is running neighborhood watch around here.

Ku Klux Klan wants to form Pennsylvania neighborhood watch group#@ - NY Daily News

That is about 10 minutes from where I live.
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Old 04-27-2014, 09:42 PM   #16 (permalink)
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You do realize I can't sell to the big companies for spot price, so I have to buy somewhere around 70% and sell for 85-90%. I would have overhead etc.

To call a business a ripoff because they make a profit makes me ill. Its a symptom of the "I should get everything free because I exist culture" that has been fostered for the last 13 years or so.

If you don't want to take 70%, go ahead and sell to the big companies, see what they'll give you, my guess is it is probably less.

im 100% mobile and you can get WAY more than 85-90% out of refiners as I can pay you more than that
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Old 04-27-2014, 09:45 PM   #17 (permalink)
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also like to add im a strong buyer on 90%
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Old 04-27-2014, 09:53 PM   #18 (permalink)
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As a Gold buying shop are you allowed to buy from local refineries? A few Pawn shops have told me they can buy but the general public cant. Also I was wondering if you would be required to hold everything you buy for 30 days like pawn shops are required to do so in case the merchandise is stolen.
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Old 04-27-2014, 10:13 PM   #19 (permalink)
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As a Gold buying shop are you allowed to buy from local refineries? A few Pawn shops have told me they can buy but the general public cant. Also I was wondering if you would be required to hold everything you buy for 30 days like pawn shops are required to do so in case the merchandise is stolen.

I think every state is different on the hold time for scrap gold. Where i live there is a cash for gold at every holiday Inn on any given weekend. There is a Legitimate Place in Gaithersburg MD That buys and sells bullion and Coins.

Also pawn shops and coin shops are readily available. But i live in DC metro area not penciltucky. I rented a case in a Card/collectible store in 2000-2001. I sold coins and cards. Really no cross over in customers. They either bought coins,Cards or nascar. They way the PMI market is now isnt the time to sell.
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Old 04-27-2014, 10:43 PM   #20 (permalink)
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im 100% mobile and you can get WAY more than 85-90% out of refiners as I can pay you more than that
I've got to find a better refiner then. I'm in the early stages of this, hence asking questions and the like.
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Old 05-03-2014, 04:35 PM   #21 (permalink)
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Gold,silver and pawn, You will make alot of money. The biggest "negative" is some people you will have to "deal" with. Your safety should be your biggest concern.


Ask yourself if dealing with a certain "type" of person that wants to sell "gold/silver" is worth it? Look into that side of the business. Lots of sketchy people sell gold and silver, i am not talking about people like your average forum people, i am talking about people that will not think twice to mess with you for $10 . hope you get what i am getting at.

It only takes one idiot to mess up everything.
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Old 05-04-2014, 01:24 AM   #22 (permalink)
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Gold,silver and pawn, You will make alot of money. The biggest "negative" is some people you will have to "deal" with. Your safety should be your biggest concern.


Ask yourself if dealing with a certain "type" of person that wants to sell "gold/silver" is worth it? Look into that side of the business. Lots of sketchy people sell gold and silver, i am not talking about people like your average forum people, i am talking about people that will not think twice to mess with you for $10 . hope you get what i am getting at.

It only takes one idiot to mess up everything.
that's why I invested in my ccw permit and a springfield XDS .45 and it is ALWAYS on me as I tend to always have money on me in case I run across something
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Old 05-04-2014, 01:56 AM   #23 (permalink)
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that's why I invested in my ccw permit and a springfield XDS .45 and it is ALWAYS on me as I tend to always have money on me in case I run across something
^^^ true talk right there. I carry a h&k .45 also with a ccw permit.
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Old 05-04-2014, 06:23 AM   #24 (permalink)
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I've got to find a better refiner then. I'm in the early stages of this, hence asking questions and the like.
Yes you do. I can get up to 97% from the refiner I use for gold.(depending on volume, but no lower than 93%)

And when you use the term "junk gold and silver", do you mean broken pieces of jewelry or coins. Because US pre 65 coins are considered "junk silver", but unless they are horrible condition, you shouldn't be sending them to the refiners, you can unload those all for spot or usually(depending, on the size of your lots for sale) quite a bit over spot.
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Old 05-04-2014, 11:00 AM   #25 (permalink)
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that's why I invested in my ccw permit and a springfield XDS .45 and it is ALWAYS on me as I tend to always have money on me in case I run across something
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^^^ true talk right there. I carry a h&k .45 also with a ccw permit.
Good luck .
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