Gold buying shop

People selling unwanted jewellery and coins pay you indirectly through your margin. Customers buying coins, chains and rings are your sales income, and refiners buy your scrap.

You buy by weight and purity at a price below the market value, then sell scrap to a refiner or sell items and coins at a higher price. Profit depends on accurate testing and tight margins.

• Testing and valuing gold accurately
• Honest, clear dealing with customers
• Security awareness and careful record keeping

• Check whether you need to register with HMRC for anti-money laundering supervision, and what ID and record-keeping checks you must carry out
• Check with your local council whether a scrap metal dealer licence applies to your buying activities
• Hallmarking rules apply to gold items you sell, so check what must be hallmarked before you stock it
• Stolen goods risk: keep records of sellers, take ID and follow police guidance
• Robbery and theft risk, so specialist insurance, a good safe and security measures matter
• Mistakes in testing can mean paying for fake or low-purity gold
• Check planning use class, lease terms and business rates for your premises

Estimates suggest startup costs are typically around £10,000 to £50,000, depending on your premises, stock, safe and security measures. Also check planning use class, lease terms and business rates for the unit before committing.

Estimated monthly revenue is typically around £5,000 to £25,000, depending on how much gold you buy and sell. Mistakes in testing can mean paying for fake or low-purity gold. Estimates suggest at least about 30 hours a week.

Check whether you need HMRC anti-money laundering registration and what ID and record-keeping checks apply. Ask your local council whether a scrap metal dealer licence applies, and check which gold items must be hallmarked before you stock them.