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Business

What is Scrap Gold Building

What is Scrap Gold BuildingThe business of collecting and selling scrap gold can be a highly profitable venture. Gold is and has always been a valuable metal. By letting your neighbors, friends and family members know about your new interest, you can benefit a lot. They will always alert you of other people who are selling their old gold items. Most scrap gold buying events are organized as house parties. You go to a friend’s house for an evening party where he also asks you to come with any gold jewelry that you would like to sell. During the event, a gold dealer turns up. In the end, you share in the fun and go back home with loads of cash.

In order to make inroads in this venture, you must know how to buy and sell scrap gold. Here’s an insight:

Collecting scrap gold items

Gold cannot be destroyed, what this means is that all the gold that has ever been mined is still in existence. The only exception is where people have lost their gold items. With the use of the right kind of equipment, gold dealers go ahead to recover pure gold from a mix of all discarded gold jewelry and other collectible items. Gold can be melted and refined before being used again. Among the common gold laced jewelry pieces that people sell as scrap gold include earrings, bracelets, chains, rings and watches. Others are gold teeth, crowns, bridges, dental fillings and gold coins.

Selling unwanted gold

In this business, anything that contains gold is readily accepted. The scrap gold market operates under the same rules of demand and supply. This means that the price you will be fetching on a typical day keeps changing. You should therefore monitor the going rates carefully let you lose out on profits. Always make prior arrangements with your prospective dealer to buy at a certain price. Otherwise, you will fall into the hands of dealers who pay on receipt of the gold. If the price rises, well and good as you can recoup the previous time’s losses.

Building an inventory of gold

Once you know how the trade operates, you could decide to become a scrap gold buyer. In order to do this successfully, you must have a proper understanding of how pure gold is extracted. You notice that most jewelry items consist of traces of other metals such as copper, platinum and silver. The gold you deal with should be between 9-24 karats. Pure gold is 24 carats and is said to have 999 parts out of 1000 being pure. On the other hand, 14 carats worth of gold contains 585 parts pure gold and 415 parts being other metals.

Once you know how to determine the amount of pure gold in any piece, you will be able to make good progress. So, the secret is to build a collection of scrap gold, know the current price and find someone to buy your collection.

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