Making a Profit from Buying Gold Jewelry

Gold is a symbol of wealth throughout the world, but many people don’t realize how easy it is to make big profits by simply buying and selling gold jewelry. The process is easier than most people believe.

Buying Gold to Resell

Buying Gold

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When you think about buying gold, expensive jewelry stores and gold dealers are probably the first sources that come to mind. When you buy gold at these places, there’s no way to make a profit by reselling it. Even dealers that offer gold pieces at wholesale cost charge too much for the average person to make money. The trick is to buy used gold or even scrap pieces from people who need the cash more than the items they’re selling.

There are several places to look. Some of the best sources include:

  • Estate sales
  • Garage sales
  • Craigslist
  • Private auctions

Jewelry and gold sold through these places is typically well below market value, so you can make a pretty profit when it’s done correctly.

How to Resell Gold

Resell Gold

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Buying gold at a low price is the first step to making a profit from this lucrative business. Many people consider that the easy part. Reselling gold jewelry isn’t difficult either when you know what you’re doing. There are lots of places that buy gold and accept scrap metals, ranging from pawn shops to internet businesses, but these are not the locations to sell to if you want the greatest returns. In fact, most of these buyers are simply middlemen making their own profit on your jewelry. Metal refineries are the key to making a real income from buying gold.

What Is a Gold Refinery?

Gold Refinery

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Refineries work with a variety of metals, including gold, silver, palladium, and alloy mixtures. The purpose of a refinery is to transform scrap metal, impure bars of metal, and other useless objects into pure bars for reuse. These establishments pay for the metals needed to complete the process based on the current market value and weight of the metals involved. The amount of profit made depends primarily on the weight and purity of the metal you sell.

How Gold Refining Works

Refining Gold

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The refining process removes impurities from metal to increase its value. To do this, refineries melt scrap gold and unwanted jewelry pieces in a large furnace. The refinery adds borax and soda ash to the hot mixture. This combination causes the pure gold to separate from less valuable types of metal, typically resulting in gold that is 99.9% pure. Silver, copper, and any other valuable metal derived from the refining process will add to your profits.

Determining Profits from Gold

Gold Profit

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Each refinery has their own payment system, but the basic process is generally the same. In most cases, the current market value of each metal, along with the weight and purity after refining, determines the amount. Of course, the refinery is also in business to make a profit so a percentage is typically deducted to cover the refining process. Purer gold tends to bring the best profits, as well as metals like platinum and palladium.

Making a profit from buying gold jewelry is much easier and lucrative than many people imagine, especially when you know a little more about the process.

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