Precious metals, primarily gold and silver, tend not to lose their value because they're natural resources that aren't readily available. Fiat currencies are often compared to gold and silver to determine their value. Starting a scrap gold and silver business will assist individuals in need of cash. You can make a lucrative profit thanks to the increasing market values of gold and silver.
- Skill level:
Legally structure and establish a business. To protect yourself from potential litigation and to take advantage of tax benefits, form an LLC or corporation. You can either hire an attorney or certified public accountant to assist you with this process, or you can incorporate yourself by going to your state's secretary of state’s website. The cost is generally less than £65 to incorporate.
Obtain a federal tax ID number from the IRS. A federal tax ID number, also known as an employer identification number, identifies your business, allows you to open a business current account and establishes business credit. Visit IRS.gov to obtain your federal tax ID number or to print out Form SS-4 to mail in, or contact an IRS agent over the phone to obtain your tax ID number.
Determine if you want to operate online or offline. Locate a property to lease or purchase for your business if you choose to have a storefront (a real estate agent can assist you with this). Otherwise, hire a freelance Web designer to design your website. Go to such sites as getafreelancer.com or elance.com to find freelance Web designers to bid on your project.
Purchase equipment to determine the purity of the gold and silver your customers will attempt to sell you. You can buy industry-specific electronic products to determine the purity and density of gold and silver. For example, the ET18 gold tester, which sells for about £64, allows you to test the purity of gold.
Locate a refinery to work with. After you purchase scrap silver and gold, you'll then sell these materials to a refinery, which will take the scrap metal and melt it down into bullion, coins and other items. Research the Yellow Pages to determine if there is a mint in your area that refines scrap gold and silver, or you can locate online refineries like Midwest Refineries (see Resources).
Advertise your business. Typically, people in need of cash will visit pawnshops and cash-advance stores. Place flyers in areas close to these locations, as well as in supermarkets. Create a website to advertise your business even if you have a physical storefront.
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