How to Become a Precious Metals Dealer

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Gold is up over 370 percent over the last 10 years and silver has doubled in price in the last two years. Some of the world's top financial advisers recommend their clients invest nearly 10 percent of their money into precious metals. This business venture has become a lucrative option for entrepreneurs interested in this industry. As a precious metal dealer, you're entering into a deep-rooted profession with the potential to make lots of money. To become a metal dealer, you first must understand the industry basics to increase your chance's of success.

  • Pick which type of precious metal you want to buy and sell. The most common types of precious metals are gold, silver, titanium and platinum. Before choosing, educate yourself on each metal. Determine their cost, each metal's purpose and how easy are they to sell. A successful dealer should be an expert on the metals they trade.

  • Select which form or forms your metal will be bought and sold. Precious metals are traded in the form of coins, jewelry or antiques and collectible. (See reference 1)

    Like any successful businessman, a good precious metal dealer will understand how each form of trade is priced, bought and sold.

  • Set up a place of business. You need a place to buy, store and sell inventory. Lease or rent a building that offers retail space and plenty of inventory storage. Keep in mind that your inventory is expensive. Your store should have a superb security system and a storage area that is well protected with heavy duty safes.

  • Buy inventory. Buying online is a convenient way to purchase precious metal. Websites like Bulliondirect.com and Apmex.com are great sites to buy precious metals. You can also attend coin and antique shows. Sellers at these markets could offer better prices than a regular retail outlet. If you plan to buy and sell coins in bulk, consider buying straight from the U.S. Mint. Offer consignment opportunities for other dealers to gain additional access to precious metal resources.

  • Sell your precious metal among various platforms. The most common streams of selling are either online, at auction or in-store. To be a successful precious metal dealer, you should use all three methods of selling. The faster you sell, the more money you make.

References

  • Photo Credit Jose Luis Pelaez/Photodisc/Getty Images
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