Gold Business Ideas – Opportunities To Make Money Investing In Gold Mining, Trading, Import And Export Of Gold Bar, Gold Rock And Gold Ore
If you are looking to start a business trading in gold or want to invest in a gold buying business, I have highlighted some steps you need to take to start investing in gold.
I have also discussed investment ideas in the gold business which can guarantee you making huge returns when you start a business of buying and selling gold bullion.
Is Investment In Gold A Good Idea?
Many investors in gold preserve it in the form of bullion coins and gold bars. These materials can be stored for a very long time because their values are not tampered with by inflation and recessions.
What Is The Best Way To Invest In Gold?
How do you buy gold and silver? Where do you invest in gold? How do you open a jewelry store? How do you sell gold?
Gold is often sold in jewelry in alloyed form. Gold content of alloys and jewelry is measured in carats (k). Pure gold is designated as 24k. The higher the caratage, the higher the percentage purity of gold in the alloy.
As such, the gold content is 22 carats (k) is greater than that found in 18 carats (k) gold. Copper, Silver, and Palladium are the most common base metals used in alloying gold.
Copper gives the finished product a characteristic reddish color.
Here is how to do the gold business.
Guide To Investing In Gold
Gold can be found in reserves in different parts of Nigeria.
You can invest in gold which comes in different forms such as gold bar, gold dust, gold ore, and gold rock. Gold can be found in the following states Niger, Osun, Kebbi, Kaduna, Kogi, Kwara, Zamfara, Katsina, Kano, and the FCT, Abuja.
The gold deposits are mainly alluvial and are currently being processed on a small scale and they occur in small quantity that has to be worked on to produce gold bars.
How To Make Money Buying And Selling Gold
Buying and selling gold is a lucrative investment that gives great profit. You can even decide to start your gold business from home so long as you understand the rudiments and technicalities of the business.
TYPES OF GOLD BUSINESS
List Of Investment Ideas In Gold + Gold Jewellery Business Ideas
==> Direct ownership: Buying and storing gold is a defensive way of holding value in an asset.
==> Investing gold mutual funds
==> Flipping gold: Buying when price drops and reselling for profit when the price rises.
==> Opening a reseller shop: buying second hand used gold jewelry from people and reselling
==> Gold exchange-traded funds (ETFs)
==> Gold mining and sale of raw gold: investing in gold exploration and sale of a raw gold bar or dust as a raw gold dealer
==> Opening a goldsmith center: providing services of gold casting, molding, purification, production, and customization of gold rings, bracelets, neck chains, Apple iPhone, business cards, etc.
If you are ready to start a business investing in gold, here are some simple steps to take:
1. Get Your Gold Business Registered
It is proper to make your gold business legitimate by registering your business and obtaining a catchy jewelry business name for it.
As buyers or raw gold dealers, individuals, corporate organizations and the government will are more comfortable doing business with you when it is duly registered.
2. Write A Plan
A gold investment business plan will prepare you for challenges involved in the business and planning on how to overcome them.
The plan will contain plans on how to expand this gold investment in the future. Many people ask what amount of money they need to start a gold business. Well, a well-written plan would have answered most of your questions.
No serious business survives without a well-detailed and researched plan. The same goes for the gold business.
3. Research On The Best Type/Form Of Gold To Invest In
Take your time to carry out extensive market surveys and feasibility studies on different types of gold before you start this investment. These will guide you into what kind of gold to invest in and where to source for the gold market.
Examples include raw gold dust, gold ore, gold rock, gold bar, old and scrap gold jewelry, gold foil/leaf business cards, collection of gold-plated watches, etc
4. Get Experience In Gold Value Assessment
Gold comes in different alloyed forms and weights. It is the responsibility of any serious investor in gold to be able to evaluate how much gold is contained in a product and its weight in grams (g) or kilograms (Kg).
This is called the percentage purity and is rated as Caratage. Thus we have very fine gold 24k (carat) which contains finite to no impurities and 10k (carat) that contains a higher degree of impurities as a base metal.
5. Look For Sources Of Gold To Buy At Competitive Price
There is nothing cheap about gold. If it is cheap, it’s most likely to be a scam. Instead of looking for cheap gold to buy, why not get a supplier of gold who will give you a price that can guarantee you a decent return on your investment.
Your choice of the gold seller must be reliable, trusted, and delivers on time.
6. Source For Market For Your Gold Business
Before starting a gold trading business, do well to conduct a specific market survey. Know who your buyers of gold are, how much gold you can easily sell within a short time, and what type of gold these gold buyers are willing to buy.
Partner with other investors to raise enough capital to purchase more KG of gold and to be able to gather enough money to start a wholesale business in gold. You may also work with gold shops and retailers. Gold is a luxury and not a necessity so you need to actively look for buyers of gold yourself.
7. Buy Equipment For Gold Business
If you don’t want to be cheated into bankruptcy, it is wise to buy important tools use in the gold business and ensure they are well maintained. Some of this equipment include those used in gold smelting, molding, weighing, testing, etc.
8. Gold Business Promotion
Advertisement is the soul of business. To succeed in the gold business, you need to spread your reach. If you can afford it, market your gold products and services on tv and radio as well as in print media. Several online platforms are also available for affordable advertisement.
9. Monitor Trends In Gold Investment
Demand, gold use, and the market price of gold fluctuate. As investors are determined to succeed in the gold business, please do well to monitor these changes. For instance, there is a significant variation in people’s demand and taste for gold jewelry during different times of the month and year.
10. Secure Your Gold Business
The gold business is capital intensive. This usually attracts stealing and pilfering. It is a good idea to maintain high security around your gold business premises. Installation of tight security iron safe, security doors, electric fencing, and CCTV, as well as the use of security guards, is recommended if you can afford them.
How To Obtain Gold Mining License (Lease) in Nigeria
To obtain a license for mining gold, there are currently two routes available for prospective raw gold mining investors into the mining sector.
==> Purchase of a pre-existing gold mining property from the original owner. After acquiring the property, you can apply for a business license from the Ministry of Solid Minerals Development.
==> Applying for the following mining rights.
1. Prospecting Right (PR)
2. Exclusive Prospecting Licence (EPL)
3. Special Exclusive Prospecting Licence (SEPL)
How much capital do I need to get started in this gold business?
Buying a good quality gold scale and gold testing kit may cost you around 10,000 Naira. The money will also be spent on advertising your gold business. Finally, you will require money to buy your first few pieces of gold. This may be between $500 – $5000 depending on how much gold you want to start with.