Starting a Gold Buying Business: Essential Considerations for New Entrepreneurs

Question
QUESTION: Hello Les, I am going to open a gold buying business and am pretty green.  What are the main things in your opinion of what I should do and or whatch for in entering this field?   Thanks, Jim

ANSWER: Jim
Its not as easy at it seems, competition is fierce since everyone is on the bandwagon, you first need to find an HONEST refiner to be able to sell, refiners dont deal with small quantities anything less than a Kilo of gold at one time. There are smaller brokers who will purchase your gold you bought for a . Today if you can find someone who will pay 75𰊮d I mean an Honest 75-80 meaning full value for assayed goods your doing fine....they will say they pay more but never do.....
In addition, you will need lots of cash to make it worthwhile, you need a location you cant just set up in the bank or go to peoples homes....with cash its dangerous.
let me know what your business plan is and I will try and help you.
If you need a refiner, I can help there as well. You will need a testing kit to make sure what you are buying is gold or silver.
all the best.
les

---------- FOLLOW-UP ----------

QUESTION: Thanks Les, I have a pretty good location I'm leasing for only 3 months, just to see if I can attract anyone.  Its in a good spot on a main highway.  A little strip mall. I got the place real cheap.  $350 month.  I have a banner out front of my place.  I am just starting out wanting to buy gold from people who may want to sell to me.  I have gotten the ok to deal with Kitco.  Also have dealt in small quantities before with Midwesterefineries.  I have two acid test kits and have been practicing a bit.  Gonna throw out some flyers to local stores.  Thats all I have planned so far.  I have registered and filed with the local police.    Any suggestions will be appreciated.  
I'm figuring I probably won't even see one person walk in the place the first month.  What say you.   Thanks again, Jim

Answer
Its all good.....I wish you luck! Mostly you may find a lot of costume jewelry and be careful with items stamped 14kt which are not....the acid test will do this for you , are you using HCl? try and get some files and file into the item to remove the plating so the acid can work better and faster. How much are your refiners paying you? do you have a gram or dwt scale?
let me know how it goes
all the best
Les