Local gold and coin buying shop

Walk-in sellers who want cash for unwanted gold, plus collectors and savers who buy coins and bullion.

You buy below the market value and sell or refine for a margin. Coins and bars add a small premium on each sale, and scrap earns a spread after refining costs.

• Comfortable with sales and negotiation
• Careful with weights, purity testing and math
• Trustworthy and good at explaining prices
• Alert to fraud and fakes

• Many states and cities require a precious metals dealer or secondhand dealer license, and some require ID records and holding periods, so check with your state and city
• Dealers in precious metals may have anti-money-laundering program duties and IRS cash reporting rules (such as Form 8300), so check with the IRS and FinCEN or an accountant
• Theft and robbery risk: check insurance for inventory, security systems and cash handling
• Fake or plated gold and stolen goods are real risks, so verify items and seller ID
• Gold prices move quickly, so price risk on inventory needs managing
• Zoning and lease terms for retail premises

Startup costs are typically around $25,000 to $100,000, depending on your premises, opening inventory, testing equipment and security. These are estimates, so get quotes for your own location and stock plans.

Monthly revenue is typically around $10,000 to $50,000, depending on how much you buy and sell and how gold prices move. That is revenue, not profit, so inventory and other costs come out of it.

Many states and cities require a precious metals or secondhand dealer license, and some require ID records and holding periods. Also check anti-money-laundering duties and IRS cash reporting (such as Form 8300) with the IRS, FinCEN or an accountant, plus zoning and lease terms.