How to become a bullion dealer
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Dealing with precious and rare collectibles, such as bullion, can be a challenging proposition. Many view bullion as a serious investment. Bankers deal with money; bullion dealers deal with a form of gold coins or silver coins as well as other precious metals and gems.
- Dealing with precious and rare collectibles, such as bullion, can be a challenging proposition.
Bullion dealers must understand a coin's variety, business strategies and have good decision-making abilities. If you establish yourself as honest and reputable, you have a chance to become a successful bullion dealer.
Settle on what kind of bullion you want will handle. Bullion takes the form of bars, ingots and coins. The most popular form of bullion is coins. Once you decide on the form of bullion that you will deal in, then you will have to decide on what commodity you will mainly concentrate on. Bullion commodities include precious metals, gold, silver, platinum and gems like diamonds. The prices are based on the weight of the precious metal and content. If you are specialising in coins, at first you might want to focus on something specialised like Silver American Eagle coins.
Formulate a business plan. Write down the estimated costs that you will need to start the business. For example if you are going to open a store, you'll need to factor in rent cost, insurances, utilities and other costs. If you will conduct your business online, you will need a domain, someone to design your website and hosting fees.
- Formulate a business plan.
- Write down the estimated costs that you will need to start the business.
Identify clients. Be informed on your clients' desires and standards when it comes to collecting bullion. Some will buy only rare coins and are very particular in denomination, type, date and how coins are made.
Apply for a tax ID number. Select a name for your business and register it at the Department of State. The business does not usually require a license, but you need to apply for a DBA (Doing Business As) permit from the Secretary of State. In some states, you can receive the permit from the local county clerk office. The charges vary from state to state and can be as low as £64 in Iowa to £90 in Indiana.
- Apply for a tax ID number.
- The business does not usually require a license, but you need to apply for a DBA (Doing Business As) permit from the Secretary of State.
Find a reputable wholesale bullion dealer. Buy wholesale to maximise profits. Prices vary depending on what you are selling. For example at Southern Coins and Precious Metals, the price for gold coins ranges from £103.90 per 2.84gr. for U.S. Gold eagle limited. (See reference 2)
Compare prices from several dealers before settling on one so you can get the best price for the best quality. You also can look into auctions that sell bullion, but if you are a small-scale dealer, buying from auctions won't generate as much profit as buying wholesale.
Market yourself. You can do so by advertising on the Internet and local newspapers. Use social network websites. Television advertising also is an option.
- Attend seminars conducted by numismatic associations so you can get information on business trends and what's new. Join associations such as ANACS, which will help in verifying the coins you have before you try to sell them. (See reference 3)
- Ensure merchandise is genuine.
Martin Muchira has been writing content for online businesses since 2008. He has written content for major companies like Air Asia and Comcast. Muchira graduated at the top of his class from Moi University with a Bachelor of Science in wood science and industrial processes.