How To Make Money Buying and Selling Gold
By: Skip McGrath
Most of you know me for my books about selling on eBay and Amazon, but I have done a lot of other things in my life too. One of them is buying and selling scrap gold.
Gold is soaring and near its all time high.
When I first got into this business gold was selling for around $300 an ounce. Gold went as high as $1900 an ounce and today gold is selling for over $1,100 an ounce and experts forecast it to go higher – much higher! I have seen forecasts by reliable writers that Gold could reach as high as $5000 an ounce in coming years.
The United States is the largest jewelry market in the world and millions of Americans have old, broken or just out-of-fashion pieces of jewelry sitting in their jewelry boxes. Just last week my wife came across a single 18K gold erring. She lost the other earring in the set about ten years ago and the remaining earring has just been sitting in her jewelry box since then. I put the earring on my gold scale and it weighed 8 grams. At today’s prices that one earring was worth over $300 –which is more than she paid for the pair ten years ago.
There is literally a fortune in gold –billions of dollars worth, sitting around collecting dust. But the high price of gold today is bringing it out of the woodwork. And all you have to do to get your piece of the pie is to ask.
You might be wondering how long this business can last. I recently spoke with the owner of a large gold refining company and I asked him how long this business could continue. He said:
“Every year all the refining companies in the US combined refine less than one percent of all the scrap gold jewelry in the country. And new jewelry sales grow over five percent a year. So there is pretty much an endless supply. We have been in this business for 33 years and we expect to be doing this for at least another 33 years.”
How much can I make buying gold?
Unscrupulous gold dealers like the ones that advertise on radio and TV ask you to mail your gold in to them. They typically pay between 10% and 20% of the value of gold. Most pawnshops pay about 30% to 35%.
Legitimate dealers pay between 40% and 65%. 40% to 65% may seem low to you, but remember, the gold you buy has to be smelted, refined, assayed and poured into ingots before it can be resold. Refiners who do this will pay you between 85% and 92% of the spot price of gold.
Lets look at a typical sale. The average person tends to bring in three or four items that altogether weigh about 2 ounces. Most items people bring me are 14K gold which is 58% pure gold and the rest is alloys to lend gold its color and hardness.
Two ounces at 58% works out to 1.16 ounces of pure gold. Lets say for example you pay that person 50%, which is typical of most legitimate gold dealers. At $1400 ounce, that comes out to $812. Now you send the gold to a refiner who will pay you 95% of the spot price. I will let you do the math this works out to a very nice profit from just one transaction. Many experts predict that gold will go as high as $2000 an ounce. I don’t know if that will happen, but imagine how profitable this business will be if it does.
Do that 3 or 4 times a week and you are looking at some real money! And it’s 100% legal.
Skip McGrath’s book on gold buying is amazing. He also has extremely good one on one support. He cares about his customers. Thanks Skip! ~ Michael
Where do you find people with Gold to sell?
I live in a small town of about 12,000 people. I was driving to the supermarket on a recent Saturday and saw several signs that said: “Cash for Gold and Silver Today at the Majestic Hotel.” After I left the market, I drove over to the Majestic Hotel to see what was going on.
There was a gentleman in one of the meeting rooms off of the lobby with a table, a scale and calculator and a cash box. He was meeting with a lady while two more people waited their turn. I didn’t want to bother him, but the lady who works at the reception desk is a friend of mine, so I asked her how he was doing. She told me he has had a steady stream of customers all day. Imagine if each person brought in just one ounce of gold and he saw 20 or 30 people that day. That is a huge amount of money
There are two factors driving the gold business today:
- A tough economy with millions of people out of work
- The record-high price of gold
The gold business has always been a good business, but nothing like it has been since 2008 when gold prices started rising as the economy began the downturn. These two facts have combined to bring millions of people out of the woodwork with gold to sell. Either they need cash, or they just want to take advantage of today’s high prices.
It is very easy to find these people. You can set up in a hotel room like the person in the example above. You can advertise in local papers or even on radio. You can also advertise for free on sites such as Craigslist. Another popular method is using door hangars. You can get them made for about 2-cents each and hire school kids to hang them for you. But none of these methods work as well as one simple, low cost advertising method I am going to show you in one of your free bonuses.
Do you like to travel? A couple of years ago I met an older gentleman and his wife who roam the country in an RV, buying gold at every town they stop in. They even have a sign on the side of their RV that they buy gold and people come up to them in the RV parks.
Gold Parties are a booming business
One of the things I show you how to do with my system is throw gold parties. You have all heard of home parties for Tupperware, cosmetics or cooking gadgets. Well at those parties people spend money. When people attend a gold party they make money! If you can get 10 people to a gold party you can buy several ounces of gold, -potential profit of up to 45% on each ounce And the hostess, who put on the party, will get 10% of what you make. Now that’s what I call a “win-win.”
My system includes complete instructions on hosting a gold party of your own and how to market gold parties to others. Besides the instructions I have also included flyers, brochures, ads and invitations. All of these are in simple Word docs, so all you have to do is add your contact information and print them out.
What kind of gold do you buy?
Here is a list of some of the gold pieces I see every day:
If you are a woman reading this, I bet you have one or more of these in your closet or jewelry box. If you are a man, just show this to your wife or girlfriend and they will tell you how common this is.
Is this only about buying jewelry?
There is no question that jewelry is the easiest, most plentiful market to do this in. But I am also going to show you how to make money from discarded electronics including cell phones, stereos, computers, microwave ovens and more.
Last week I was donating some things to our local thrift shop. When I arrived the helper was in the process of throwing several older electronic items in the dumpster. I asked why he was doing that and he said “Well they don’t work so we can’t sell them. “ I asked if I could have them. One of the devices was a ten-year-old tower computer and the other was a cassette tape deck and amplifier.
With about 30 minutes and a screwdriver I recovered almost $200 worth of gold from just those two items. Most of you won’t want to bother with this aspect of the business because buying jewelry is so easy, but there are plenty of people who make over $1000 a week collecting and taking old electronics pieces apart and sending the parts to refiner who will pay them 80% of the spot gold price.
You can even get these items for free. Just advertise that you recycle old electronic items and people with bring them to you rather than taking them to the dump.
How much money do I need to get started in this business?
You will need a gold scale, a gold testing kit and a couple of simple tools. All of this will cost less than $30.
You will have to spend about $25 to $50 on local advertising to find your first few customers.
Lastly you will need some cash to purchase your gold. I would say you would need about $500 to buy your first few pieces. But don’t worry. If you don’t have that, I will show you two ways to get started with no cash at all and bootstrap your way to your first few sales.
Skip: What does your system include?
Here is what you get:
- 50 page eBook, How to Make Money Buying and Selling Gold. – My book contains everything you need to get started. Please Note: My eBooks are set to allow printing. You can print it out on your computer printer, or you can send the file to a local copy shop and they will print and bind a copy for you.
- Bonus Resource – A bonus package that contains all of the ads, flyers and invitations you need to market your business. It would cost you hundreds of dollars to create these from scratch.
- Bonus Resource – My personal list of refiners who will pay between 92% – 96% for your gold
- Bonus Report – Tools of the Trade
- Bonus Report – Sandwich Board Advertising
- My No Questions Asked, 100%, 60-day Money-back guarantee!
OK– How Much does it cost?
My complete Gold Buying Training System only costs $37!
One more bonus: I am going to give you a very short, but free report that shows you a fail-safe local advertising method that will cost you $38 for every 1000 people who receive it and can generate generous returns for each dollar you spend.