When you buy gold with the intention of selling them when prices are right, a few things become vital factors towards ensuring that you come out of the deal as a winner without stepping on toes and earning a bad reputation for yourself.
The business in general could be a capital intensive endeavour and hence associating yourself with the right parties to deal with becomes a critical success factor. One thing that you must be vigilant about is the fact that there are unscrupulous merchants that are out to bleed you to an extent at which you will have no other option but to do the same to those you buy gold, silver or any other precious metals from.
It is because of this factor that it is crucial that prior to dealing with gold merchants, you have to commit yourself to due diligence. Homework is a critical aspect of basically any business and all you have to do is seek out every gold dealer within a 100 KN radius from you and run background checks on the dealers.
The basic data that you have to gather about each of them include, but not limited to information about how lo9ng they have in business, the responses on their feedback columns (if they have it on their websites), the percentage that they offer in relation to the market gold spot price and the manner in which they deal with clients (you can do this by actually calling the number listed on their site and have a little chat about how they go about buying or even selling gold and other precious metals).
Following this, you should also seek out information about who or which other companies, government agencies or dealerships they are associated with which could give you an indication about what other services that these companies would be able to offer if you become affiliated with them in turn. Such as gold refining, bullion trading, a channel through which you could obtain ETFs and other precious metal related business activity.
Social media sites could actually be the best places to find out about gold dealers based on what people say about them and their trustworthiness. Forums and blogs are also good avenues to do some research about gold buyers who are close to you as they may contain feedback and reviews about how companies actually conduct business.
From here on, you could probably narrow your list down to 3 or 4 gold dealers and subsequently arrange an appointment to make the first small deal to finally reach the ‘one’ dealer that you will start building a relationship with over time. Having a reputable gold dealer in your pocket is advantageous for a variety of reasons including the sharing of knowledge which could give you the competitive advantage over others who are in the same line of work.
Keep the pace slow and do not indulge into transactions that are too big for you to handle until you are stable, this would e the rule of the thumb regardless if you are buying or selling gold.
