Precious metals have been used as currency for thousands of years while maintaining their value through time. In fact, precious metals are expected to carry on being more valuable in the future. Due to their history of maintaining value, Gold and Silver are considered the safest and best way of investing. The great thing about precious metal investments like gold coins and silver coins is they are inversely related to the stock market and other financial instruments. When the market is weak for commodities, there is an increase of purchasing power in precious metals.
Who are gold traders?
Gold traders are the professionals who help people make investments in precious metals. The concept of gold trading is quite simple and similar to trading in any other financial market. Buy the gold low and sell it high, with a clear understanding of the difference between the two scenarios.
Where to start
There are various types of gold that you can trade such as bullion, gold coins, raw gold or jewelry. You need to choose which type of gold you want to deal with. Although all forms of gold are valuable, there are some forms that attract more market attention than others. Therefore, you should do a lot of research into the various forms of gold to find out which form is the best for you. Once you choose the type of gold, you can develop a business model to stick to.
Buying the gold
You can acquire gold through various ways. For instance, you can buy gold at conferences or trade shows where it’s usually on sale. You can find coins at coin shows and buy them at a very good price. These shows also give you a great opportunity to find out more about the gold trading market and how things work. You can get your feet wet by starting with a few gold deals. You can even get traders who are willing to sell the gold at a wholesale price; many gold dealers will be willing to help you start-up if you commit to buy a large quantity. At this point, person-to-person marketing skills become extremely crucial.
In many parts of the country, you only need a Doing Business As license from the local authorities to trade gold. However, there are some areas where you need additional licensing and permits. It is advisable to find out what the local regulations are before starting business in order to be on the right side of the law.
With the growth of the business, you can earn bigger titles such as Authorized Mint Purchaser, which requires a bit of net worth. You need to have assets worth over $ 50 million with a history of quality sales.
You can also choose to become a gold broker and trade gold in the forex market independently or through a brokerage firm. In order to be a gold broker, you need a minimum investment of $ 2,000. Being employed in a brokerage firm is a great way to learn the ropes from more seasoned professionals.
About the Author: John Stewart has traded gold successfully for over 10 years. You can read more about how to BuyAndSellGoldSilver from his blog.