Gold and jewelry buying storefront

You pay walk-in sellers: locals clearing out old jewelry, estates and people needing cash. Refiners, wholesalers and customers buying resale pieces pay you.

You earn the spread between your buying price and what refiners or resale customers pay. Adding resale of jewelry, coins or simple repairs can improve margins.

• Testing and valuing precious metals and stones
• Negotiating and building trust
• Bookkeeping and record keeping
• Security awareness

• Dealer licensing, ID recording, holding periods and police reporting can apply; check your city, county and state
• Theft, robbery and fraud risk, so check security systems and insurance such as jewelers block coverage
• You need enough cash on hand to buy, and metal price swings can cut margins
• Counterfeit and plated items, so test everything carefully
• Check IRS and federal cash reporting rules, and workers' compensation if you hire staff

Startup costs are typically estimated at around $15,000 to $75,000, depending on your premises, security, testing equipment and the cash you hold for buying. Treat this as an estimate and get local quotes.

Monthly revenue is typically estimated at around $10,000 to $50,000, depending on foot traffic, the volume you buy and metal prices. Price swings can cut margins, so plan your cash on hand carefully.

Check whether dealer licensing, ID recording, holding periods and police reporting apply in your city, county and state. Also check security and insurance such as jewelers block coverage, IRS and federal cash reporting rules, and workers' compensation if you hire.