Posted on

Interview with a Bullion Dealer: Insights into the Business of Selling Precious Metals

Introduction

The job of selling precious metals often involves dealing with people who are nervous about making large financial transactions. While this can be stressful, it doesn’t have to be. You just need to be prepared for the questions and concerns that people have when selling bullion such as “Do I need to sell my gold? Can I get a better price if I wait?” In this article we’ll explore these questions by talking with an experienced gold refinery and silver bullion  dealer who has been in the business for over 10 years. We’ll look at how he got started, what types of customers he’s dealt with over the years, what challenges he’s faced along the way—and most importantly: how someone can learn from his experience so they don’t make mistakes when buying or selling precious metal!

What does your company do?

We are a bullion dealer, which means that we buy and sell gold and silver. We also offer refining services for those who want to take their own ingots of metal and turn them into bars or coins that can be used as currency.

We do all this through our online store, where customers can purchase products ranging from coins to bars of various sizes and weights–and even some jewelry made with precious metals!

How did you get into the business?

Me:

I started my career in precious metals as a bullion dealer, but before that I had been working as an analyst and trader for several years. I was always interested in investing and gold trading, so when I saw an opportunity to get into the business of selling precious metals, I jumped right on it!

My first job was with a large coin shop where I had the chance to learn about all sorts of different coins from around the world. It was great fun seeing how different countries value their currency differently; some have very high face values while others don’t seem worth much at all (like Zimbabwe). My favorite part about being involved with this industry is being able to interact with customers face-to-face each day; we get to help them find exactly what they’re looking for when it comes time for them to buy something new or upgrade their current collection! The most difficult part would definitely be keeping up with all those orders coming in each day – sometimes there just isn’t enough time in one shift alone!

How is the gold market doing?

The price of gold is determined by supply and demand, which in turn is affected by inflation and geopolitical events.

In the last decade, the price of gold has steadily risen due to geopolitical concerns such as the global financial crisis and political unrest in Europe. In addition to this increased demand from investors looking for safe havens for their money during these turbulent times, there was also an increase in supply thanks to new mining projects opening up around the world as well as existing mines expanding operations into newer areas with higher grades (a higher purity).

The price of gold has been steadily rising over the last decade. Do you think this trend will continue?

The price of gold has been steadily rising over the last decade. Do you think this trend will continue?

I think it will continue, and I base that on several factors:

  • Gold is a good investment because it’s a hedge against inflation (the rate of increase in prices). As inflation rises, so does the value of gold–and vice versa. In addition to being an inflation hedge, gold also acts as a hedge against market volatility and geopolitical risk–two other major factors that affect investors’ portfolios.

Is there a better time to buy gold now than ever before?

  • Gold is a good investment.
  • It has outperformed other investments over the last decade.
  • It’s a good hedge against inflation and financial instability, which tend to go hand-in-hand with economic downturns.
  • As an asset class, gold has been steadily rising over the last decade–and if you look back farther than that, you’ll see even more impressive gains!

If someone were considering buying gold, what would be some good reasons to sell it?

If someone were considering buying gold, what would be some good reasons to sell it?

  • Gold is a good investment, but it’s not the only option. If you have other investments that are doing better than gold right now (like stocks), then selling your gold might make sense.
  • Gold is a good investment, but it’s not necessarily the best investment. Over time, there will always be ups and downs in any market–even one as stable as precious metals. If you have an opportunity to invest elsewhere and make more money while minimizing risk of losing value over time by investing in something else instead of bullion coins or bars, then selling may be worth considering.
  • Gold is still an excellent way to diversify your portfolio with low-risk assets that provide some protection against inflationary pressures like rising prices on goods and services; however there are other options available today which offer similar benefits without requiring physical storage at home such as online trading platforms like eToro where users can trade CFDs on commodities like silver bullion without having any physical exposure themselves (which means no storage costs either!).

Gold is an excellent asset that has outperformed other investments, and it continues to do so.

Gold is an excellent asset that has outperformed other investments, and it continues to do so. There are several reasons for gold’s popularity:

  • Gold is considered a safe haven asset. It’s a hedge against inflation and stock market volatility, which have both been increasing in recent years.
  • Gold can be easily purchased in small quantities at any time of day or night via online bullion dealers like [name of your company]. This means that you don’t have to wait until the market opens (or even leave your home) if you want to buy some physical gold today!

What are the challenges of running a bullion dealership?

The biggest challenge of running a bullion dealership is dealing with the public. There are many clients who want to see gold or silver prices go up, but they don’t understand that these metals are bought and sold based on market demand, which can fluctuate wildly. If you’re not paying attention to current events and trends in the precious metals industry, then it’s easy to get caught flatfooted by changes in supply and demand–and lose money as a result.

It’s also essential for dealers like myself to keep up with new regulations from various government agencies (like FINRA) that affect how we do business; this means staying abreast of industry news sources such as Coin World magazine as well as attending seminars hosted by organizations like Professional Numismatists Guild (PNG).

Bullion dealers have an advantage over coin dealers because we have fewer overhead costs associated with running our businesses–but there still plenty of competition out there! We need reliable suppliers who offer competitive pricing without compromising quality standards…which isn’t always easy when dealing with companies overseas over long distances where communication lines can break down easily due language barriers

How do you keep track of your inventory?

It’s important to keep track of your inventory. If you don’t, it can be difficult to know how much precious metal is in stock at any given time and whether or not you have enough on hand to meet customer demand. There are a number of ways that dealers can do this:

  • Using a computerized inventory system
  • Using a physical inventory system (like keeping track by hand)
  • Hiring an outside company to do physical audits every so often

How do you do physical audits on your inventory?

Q: How do you do physical audits on your inventory?

A: We get audited every three months by an outside accounting firm. They perform what’s called a reconciliation, which means they go through all our transactions and compare them to the books in order to make sure that everything adds up correctly. If there are any discrepancies at all, we have to document them and figure out where it went wrong so we can fix it before the next audit comes around.

Q: What would cause someone who buys gold from you to be charged with tax evasion?

A: If they don’t declare their purchase as income on their taxes (which they’re supposed to), then that’s tax evasion–and it could mean jail time! It’s important for anyone who buys precious metals or has other transactions involving cash over $10K worth of goods/services within a year period notify FinCEN (Financial Crimes Enforcement Network).

Historically, how has the business been affected by the economy?

Historically, how has the business been affected by the economy?

The bullion dealer’s business has been affected by a variety of factors. One important factor is the price of gold and silver. When these metals increase in value, people tend to buy more coins and bars than usual because they want to take advantage of their increased value. On the other hand, when prices decrease (as they have recently), fewer people will buy precious metals as investments–they’ll wait until prices rise again before buying anything at all or only buy small amounts just for fun or collecting purposes rather than investing with an eye toward making money by selling later on down the line.

What’s the most important thing someone should know before buying precious metals?

The most important thing to know before buying precious metals is that they’re investments and not just pretty things. When you purchase gold or silver, you are investing in an asset that can be used to hedge against inflation, diversify your portfolio and take possession of physical assets.

The Bullion Dealer’s job can be risky, take a long time to develop, and it may not be for everyone.

  • The job can be risky.
  • It takes a long time to develop.
  • It may not be for everyone, but if you like working with people and have an interest in the financial industry, this might be the career for you!

Why Did You Become a Bullion Dealer?

You became a bullion dealer because you love the thrill of making a sale. You want to help people invest wisely, and you’re passionate about the precious metals market. You want to work in a field where you can make a difference, and be your own boss!

You know that selling gold is more than just opening your doors for business–it’s about building relationships with clients so they’ll trust you with their assets when they’re ready to buy or sell. As an experienced bullion dealer, I have over 20 years’ experience working with customers who have entrusted me with their most valuable possessions (and sometimes even their lives).

What are the Keys to Success as a Bullion Dealer?

  • Be honest and trustworthy.
  • Have a good understanding of the market.
  • Be able to explain the benefits of buying gold, selling gold and silver (or other precious metals).

Tell me about your business model.

To start a bullion business, you need to be able to trust yourself. You must be confident in your knowledge and ability to do what is necessary for the success of your company.

You also need to be able to trust those who supply and sell precious metals through their businesses. This includes manufacturers who create products from raw materials (such as gold or silver), refiners who purify these products into bars or coins, mints that produce coins with unique designs on them (such as Krugerrands), and jewelers who sell finished jewelry made from precious metals like gold or platinum jewelry settings with diamonds in them.

It’s important that both sides have confidence in each other so they can work together successfully without any problems arising between them–or else they won’t continue doing business together indefinitely!

What does your typical workflow look like?

The difference in workflow depends on the type of business, product and customer. For example, if you’re selling bullion coins or bars to retail customers (which is what I do), your workflow may look like this:

  • You receive an order from a new customer via email or phone call.
  • You confirm with them that they want to buy x amount of ounces at price Y per ounce. Sometimes they’ll ask for more details about how their order will be shipped, when they can expect it etc., which gives you an opportunity to upsell other products like numismatic coins and coin displays that might interest them too!
  • You place an order with one of our suppliers who ships directly from their vault facility; these are usually located in Australia or Switzerland (or sometimes both).

You can treat gold as an investment, or you can just buy the pretty stuff.

There are many reasons to buy gold. You can treat it as an investment, or you can just buy the pretty stuff. For example, if someone is celebrating a milestone, like turning 50 or graduating from college, they may want something to commemorate the occasion. A beautiful piece of jewelry is always a great gift for this type of person–and gold makes an excellent choice because it will increase in value over time while also looking fantastic on their wrist or around their neck!

Another reason why people choose to invest in precious metals like silver and gold is that it’s easier than ever before: nowadays there are many companies out there offering bullion coins which have been minted specifically for investors who want small quantities at affordable prices (and without having to deal with all those confusing numbers!).

We had a chance to talk with an experienced gold and silver bullion dealer, and get some insight into what it’s like to sell precious metals.

We had a chance to talk with an experienced gold and silver bullion dealer, and get some insight into what it’s like to sell precious metals.

We asked our interviewee some basic questions about his business, such as how often he gets calls from people interested in buying gold or silver. He said that he fields about 100 calls per day–and he can’t answer all of them because there isn’t enough time! While this is certainly not representative of all dealerships (there are thousands), it does illustrate just how many people are interested in investing in precious metals as an alternative investment strategy or safety net against financial uncertainty.

When you call a dealer asking about prices on coins or bars, you may get different answers depending on who answers the phone: some employees will give out information freely while others only do so if asked directly by customers who have already opened accounts with them; still others may simply refer callers back down through their chain of command until someone higher up makes a decision based on what they hear from both sides before passing along either good news (i’mma buy) or bad news (no thanks).

Where do you source your gold and silver?

Here’s a brief overview of the different types of suppliers we work with:

  • The public. We buy gold and silver from individual members of the public, who have discovered that selling their coins and bullion is a great way to get cash for an investment they no longer want or need. This is one of our most common sources, and it’s always interesting to see what people bring in!
  • Other dealers. As you might imagine, dealers trade with each other all day long–it’s part of what makes this industry so dynamic and exciting. We buy from other coin shops as well as larger businesses specializing in precious metals trading or refining (more on these later).

What is the most difficult part of your job as a bullion dealer?

The most difficult part of their job is dealing with people who are nervous about making large financial transactions. As a bullion dealer, they need to be able to put people at ease and explain the benefits of investing in gold and silver.

The job of selling precious metals often involves dealing with people who are nervous about making large financial transactions.

The job of selling precious metals often involves dealing with people who are nervous about making large financial transactions.

It’s an emotional decision, and one that many people aren’t used to making. It can be hard for them to make the leap from thinking about buying gold or silver as something they might do someday, if they ever have enough money, to actually doing it now. This is especially true if you’re working with first-time buyers–people who may have never bought anything like this before in their lives.

Conclusion

The job of selling precious metals often involves dealing with people who are nervous about making large financial transactions.