How to Become A Gold Dealer In South Africa

Gold dealers make money on buying gold from the public. Many gold dealers are simply marketing companies, which means they facilitate the trades but do not keep inventory on hand.

Is gold buying business profitable?

You will have to melt the metal and purchase gold in exchange. This means that you may be stuck with physical gold and not make a cash profit out of it despite the appreciation in value. When you sell jewellery, you lose on making charges, melting charges, etc. It is a passive form of income asset.

Is it wise to invest in gold?

Gold is considered by investors to be one of the safest investments, recovering its value quickly through economic downturns. Gold is also a haven in times of inflation because it retains its value much better than currency-backed assets, which may climb in price, but drop in value.

When should you buy gold?

Some analysts see gold price hitting nearly Rs 52,000 in June 2021. Kshitij Purohit, Lead-Commodities & Currency at CapitalVia Global Research told BusinessToday.in that gold could hit a target price of Rs 51,700 in the coming month. “It is a good time for investors to hold gold for medium to long term,” he added.

Below is How to Become A Gold Dealer In South Africa

It seems that everyone these days wants a piece of the action in gold. Gold is at near-record highs, and the buying and selling of it has made people wealthy for years. Being a gold dealer requires finding a supply of gold to sell, and finding buyers to purchase your gold:

Find a seller to buy gold from.

To be a gold dealer, one has to find gold to buy. Doing this can be accomplished by asking your friends and family, placing ads in traditional print media like newspapers or online message boards, and generally letting your community know that you purchase gold coins, jewellery and scrap gold.

Assess the rare coins that you get.

Gold coins often have a value that is greater than their gold content. A guidebook can be found in any local library and bookstore, and can identify what coins are rare and which are common. Typically, these books will tell you the spot price (the price per ounce of gold at a given time) that the coin prices are based on, to serve as a frame of reference.

Find a buyer to sell your gold to.

Finding a buyer for gold is easy in larger communities, where jewellery and rare coin stores can provide assistance. These can be found in local business and online directories.

Let them clearly know what you have, that you want to sell it, and that you plan on selling more. This will enable you to get the best deal and have an ongoing relationship.

Do you need a license to buy and sell gold in South Africa?

If you want to conduct precious metal operations you need to obtain a mining permit from The South African Diamond & Precious Metals Regulator (SADPMR).

Is it legal to buy and sell gold in South Africa?

You can now own gold bars for the first time since 1911. Until now, you were limited to gold jewellery or gold coins, which are often sold at outlandish prices. Unlicensed South Africans could own gold only in the form of jewellery and coins.

How do you become a gold seller in South Africa ?

How to become a gold seller?

Sales – Sellers need to sell more than 6000 units OR generate INR 50 lac in revenue OR exceed the current growth index benchmark.

Average product ratings – The average product ratings of a seller should exceed the vertical benchmark set for products of that category.

How much do gold dealers make in South Africa ?

Therefore, the gold coin you purchase from a dealer may actually cost the dealer R 604.52-R 680.09 over the spot price. As strange as it may seem, for a purchase of ten gold coins with a dollar value of R 219139.92, a gold dealer may profit only R1511.31-R 2266.96, or right around 1%.

Do you need a license to sell gold in South Africa ?

A general business license is often required. The same may be true of metal dealers. They might sell to the general public, but most likely they will sell to professional traders in precious metals.

Is gold buying business profitable in South Africa ?

You will have to melt the metal and purchase gold in exchange. This means that you may be stuck with physical gold and not make a cash profit out of it despite the appreciation in value. When you sell jewellery, you lose on making charges, melting charges, etc. It is a passive form of income asset.

Is it wise to invest in gold?

Gold is considered by investors to be one of the safest investments, recovering its value quickly through economic downturns. Gold is also a haven in times of inflation because it retains its value much better than currency-backed assets, which may climb in price, but drop in value.

Is it a good time to buy gold stocks in South Africa ?

A potentially good time to invest in gold is when a recession has just hit, bringing expectations of rising inflation and declining rates. If rates are expected to increase alongside inflation, typically mid-cycle, then the opportunity to profit from an investment in gold may have already passed.