Diamond and gold buyer, by post or appointment

Dealers, refiners and jewellers who buy from you, plus online buyers if you resell pieces. Sellers are people clearing out inherited or unworn jewellery, or going through a divorce or house move.

You buy at a percentage below resale or scrap value and sell for more. Each deal earns a small margin, so turnover can look large while profit is much smaller.

• Judging quality and value of stones and metals
• Careful record keeping
• Spotting fakes and handling sellers with tact

• Buying gold or other metal jewellery to sell for scrap or refining will usually need a scrap metal dealer licence from your local council under the Scrap Metal Dealers Act 2013. Confirm this with the council before you trade, as rules on cash payments and record keeping also apply
• If you make or accept cash payments of 10,000 euros or more (including linked payments), you must register with HMRC as a high value dealer for anti-money laundering supervision. Check the current HMRC guidance, and paying by bank transfer can reduce this exposure
• Risk of buying stolen goods: verify ID and keep records of every purchase
• Stock and postal insurance, as valuable items can be lost or damaged in transit
• Prices move with the gold market, so you can lose money between buying and selling
• Check consumer and hallmarking rules before reselling to the public, check data protection obligations when storing sellers' ID, and ask your landlord or lender if meeting customers at home

Startup costs are estimated at typically around £2,000 to £12,000, depending on the buying budget, testing equipment and insurance you need. Check stock and postal insurance, as valuable items can be lost or damaged in transit.

Monthly revenue is estimated at typically around £1,500 to £7,500, depending on how much you buy and resell. Prices move with the gold market, so you can lose money between buying and selling.

Buying metal jewellery for scrap or refining will usually need a scrap metal dealer licence, so confirm this with your council. Also check HMRC guidance on registering as a high value dealer for cash payments of 10,000 euros or more.