How to Refine Gold in Los Angeles
We’ve all seen commercials on television for Gold Kit, Cash 4 Gold and Gold Paq. These businesses are buying gold in record amounts, and there’s a good reason why – they are making serious money by profiting from other people’s old gold jewelry. This is a booming market, and many people are looking to cash in by parting ways with their gold. This creates an opportunity for someone who knows how to refine gold to clean up, by buying this gold at discounted rates and then refining it at market value. This is certainly true in Los Angeles, where most people have gold jewelry that they haven’t worn in ages.
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Instructions
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Visit kitco.com to follow the market price of gold on a day by day basis. The market price of gold is fixed twice a day, and knowing the current rates is instrumental to the success of your business. Knowing the market rates allows you to estimate how much you can expect to earn from your gold, as well as fixing a price when you buy gold from others.
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Buy as much gold as you can afford to acquire on your budget. There are a number of places to acquire gold. You can run ads in the local newspaper, or even buy gold on eBay. When you are refining gold, you generally want to only buy scrap gold. This will allow you to buy the largest amount of gold for the least amount of money. Since you will be melting the gold down, you do not need to spend extra money for high quality gold jewelry.
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Remove any gems or non-gold items from the gold that you have acquired. Scrap gold jewelry will often contain precious stones or other items that are not gold. These items should be removed before the refining process. They can be sold separately at an auction or to a jeweler, but adding them to the smelting furnace would be wasting a valuable resource.
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Store your gold until you have acquired enough to be refined in one bulk batch. Most refineries will charge 2.5% of the finished product (24k fine gold) as a fee, and have a $100 minimum fee. Because of this, you need to refine a large enough quantity of gold to prevent the minimum fee from consuming your profits.
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Choose a refinery to purify your gold. There are a few good gold refiners in Los Angeles, all located on South Hill Street. One of the most popular is David H. Fell & Company (213-623-1868). You can also choose SA Refinery Company (213-622-1430) or Precious Metals West (800-999-7528). Speak to various refiners to determine what their rates are and how fast they can refine your gold, and then decide which one is best for your business.
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Refine your gold. It is really as simple as that. The refinery will take your 9k, 10k, 14k or any other caratage of gold, and refine it into pure 24k fine gold. The end result will be a bar of pure gold, which can be sold on the open market. You can choose to sell it to the refiner on the spot, to sell it elsewhere on your own, or to store it until you feel that market conditions are right.
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Tips & Warnings
Always use a digital scale to weigh gold when you are buying it, rather than trusting what the seller tells you it weighs.
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Comments
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heyoka
Dec 21, 2009
You should have a Gold Tester also.
