Can You Make Money Through Scrap Gold Arbitrage?
Selling your scrap gold items, including broken watches, damaged necklaces, and old dental work, is a great way to generate quick cash. The money can be used to take a long-awaited vacation with your family, pay for needed auto repairs, or to provide financial breathing room. You likely have old gold jewelry hiding in storage and needlessly gathering dust. You can sell these items to an online refiner who will offer a competitive price based on the current market.
But what if there were a way you could buy scrap gold from other people and sell it to your preferred refiner for a predictable profit? What if you could do this repeatedly to generate a second income?
In this article, we'll provide a few resources you can use to do exactly that. You'll need to buy an inexpensive digital scale to appraise the value of each piece you purchase. But given the potential profit you'll generate, it's a small investment.
CraigsList
As the world's largest informal marketplace, CraigsList provides a unique platform from which you can buy other people's jewelry. You can search their listings to find people in your city who are selling their necklaces, earrings, wedding bands, and even gold teeth. Or, you can post your own advertisements to let others know you'd like to buy their gold jewelry.
Once you have purchased a reasonable inventory, mail the items to your favorite refiner. If you have worked with them in the past, you should already have an idea regarding how much you'll be paid for them.
Garage Sales
Garage sales are another good resource at which you can find old pieces of gold jewelry for sale at rock-bottom prices. Generally, the people who organize garage sales are motivated to sell. They want to get rid of everything on their tables. It's not uncommon to stumble upon gold money clips, collectible coins, and even gold wire or solder. Make a low-ball offer.
If you visit a garage sale and don't see any scrap gold on the tables, let the person in charge know that you're hoping to buy gold items. He or she may be willing to sell their old gold jewelry, even if they haven't placed it on their tables.
Gold Parties
Gold parties require a little more effort. You can host the event yourself or enlist the help of an organizer who agrees to host it in their home. Ask that person to invite their friends to the party, and encourage them to bring their gold jewelry to sell. Attend the party with your digital scale and appraise other guests' gold pieces while they wait. Then, make them an offer.
You'll likely need to compensate the party's organizer for their time and for offering their home. Pay him or her approximately 10% of the appraised value of the items you purchase.
Advertise
Consider advertising in your local newspaper. Pay for a small ad that lets readers know you'll buy their gold jewelry. You can also place fliers on cars and leave business cards at places you visit. You'll find there are always those who have unwanted or damaged jewelry in their homes. They can't wear it and refuse to throw it away, so it sits and collects dust. These people will welcome the opportunity to sell their gold items for cash.
The discussion above assumes you'll be able to sell the gold pieces you purchase from others at a higher price than the price you paid. It's simpler than it seems. The most important step is to identify a refiner who is trustworthy and can be counted upon to offer a competitive price. Making a consistent profit then becomes a matter of finding other people from whom to buy their scrap gold.
Article Source: FxTradingStock.com
About the Author
The best online resource to Sell Scrap Gold or sell jewelry can be found at refinity.com
by: Tammy Fasion
Total views: 58
Word Count: 652
Date: Thu, 3 Jun 2010
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