Gold buying and coin shop

Locals selling unwanted jewellery or coins for cash, and customers buying gold coins, bars or jewellery as a keepsake or savings.

You earn the gap between what you pay for gold and what you sell or refine it for, plus a margin on coins and bars. Margins per deal are thin, so volume and accurate pricing matter. You also need enough cash on hand to buy gold from walk-in sellers and to hold some stock.

• Testing and valuing gold fairly
• Comfortable with numbers and live prices
• Careful with security and customer ID

• Second-hand dealer licensing and record-keeping rules, which differ by state and territory, so confirm what applies before you buy your first item
• AUSTRAC obligations for bullion dealing, including possible enrolment and reporting of large cash transactions, check what applies to you
• GST treatment of scrap and investment-grade gold, check with the ATO or an accountant
• Stolen goods risk, always record ID and keep goods for any required holding period
• Gold price swings can wipe out margin on stock you hold, and a float tied up in stock can strain cash flow
• Insurance for stock and theft, plus public liability, and a safe and security setup

Estimates suggest startup costs are typically around $100,000 to $400,000, depending on your premises, the stock you hold and your safe and security setup. Money tied up in stock can strain cash flow, so plan your float carefully.

Check second-hand dealer licensing and record-keeping rules, which differ by state and territory. Also check AUSTRAC obligations for bullion dealing, including possible enrolment and large cash reporting, and ask the ATO or an accountant about GST on scrap and investment gold.

Estimates suggest monthly revenue is typically around $15,000 to $75,000, depending on location, stock and how much you buy and sell. That is revenue, not profit, and gold price swings can wipe out margin on held stock. Expect at least 30 hours a week.