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Cash/Gold Operations

Discussion in 'Making Money' started by Zhang Fei, Aug 17, 2011.

  1. Zhang Fei

    Zhang Fei Newbie

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    Ordinarily I would use google for a question like this. However, I can't find a clear answer due to the mass of websites that pay cash for gold.

    I have a totally ridiculous idea to make money off of these cash for gold websites/offline locations. I don't know if it would work... but I'm willing to try and I will report back here if it does.

    My question: What percentage of the market value do these sites/stands pay out on average?

    I only sold gold for cash one time in my life but I was dirt poor at the time and I took what they gave me for :blabla: presents for the kids...
    I just basically took the money for the chains and didn't really pay any attention to what the vendor said...

    I know its only my first post but I would really like it if someone could help me out...

    Thanks guys/dolls.
     
  2. stee01

    stee01 Newbie

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    I heard it was something like 30% of the value. You're actually Better off taking it to a jewellers or other specialist shop most of the time. Black hat retailing :)
     
  3. MyCrazyWorld

    MyCrazyWorld Registered Member

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    There is a man on youtube with the user name mustangjake2073 who has a gold business and he explains his operation. He set up his own network with people acting as affiliates and referring business to him. He can pay more than the pawn shops and big websites and still make a lot of money with it.
     
  4. majorscammerhere

    majorscammerhere Newbie

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    all you gotta do is sit on it for 6 months and its doubled its value now buy $1 million worth of gold in 6 months you got $2 million
     
  5. ahiddenman

    ahiddenman Elite Member

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    They pay way under spot price these days.

    They make they're money by buying gold jewellery in bulk then melting it down into Gold bullion bars.
     
  6. amoro

    amoro Junior Member

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    Yeah simple buy low sell high. I am working on a client now that's in the gold business.
    They plan to do a membership program and sell gold well below spot automatically shipped to your door.
     
  7. bsbear

    bsbear BANNED BANNED

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    Yeah its a basic marketing scheme.
     
  8. Getwhatchuwant

    Getwhatchuwant Jr. VIP Jr. VIP Premium Member

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    I was a District Manager for a Gold Buying company for a year so I know the ins and outs of this process from what the typical pay rate is how these gold buyers make money, where they resell the gold and even the testing procedures. Not only this but I am familiar with the laws and regulations of the industry.

    On average they pay out 50% or LESS of what THEY get paid.

    So if 24K gold is $2000 per ounce and they are getting 95% of the value That means the gold buying company is getting $1900 per ounce for that gold. So if they pay 50% or less they are offering you the customer around $950 or less depending on what that particular company does with their spot pricing.