How To Start A Gold And Jewelry Business In Ghana

The business of buying and selling of gold and other
precious metals is worth millions of dollars in Ghana.

They
are usually sold in the form of Jewelry such as necklaces
and rings not in their raw form.

Gold is a particular favorite
during weddings, it is given to brides as gifts by their
families or even by the husband.

The rich also patronize
expensive Jewelry business very much.

To begin this trade one has to sharpen his sales skills,
because excruciating bargaining is involved in order to
yield maximum profit.

It is usually bought at a lower/bulk
price and sold to customers at a higher price, so the better
you are at your sales pitch the more you will earn.

The
business model we are going to employ is the type that
involves running the business in a shop, where customers
come to buy from you or sell their gold or other precious
stone jewelries to you, these may include diamonds, silver,
platinum, ruby and of course gold.

Other jewelries are in the fashion category which is where
beads making and mass produced plastic jewellery fall in,
but we are focusing on the expensive or rather special
jewelries in this article.

Before you start any preparations
make sure you register your business with the CAC first, it
is recommended you register it as a sole proprietorship.

Below are some of the most important factors that you
should keep in mind:

Always Be Aware of the Latest Price

The price of gold fluctuates easily,

so every now and then
you should check on it to see the latest price figures,
because by not doing so you might be selling at a loss or
buying at a higher rate when it is supposed to be cheap at
the time.

You can always find the present value of gold
online or from other gold vendors around you that you trust.

Rent a Shop

Find a good market place that is visited by the population
of that particular state, and rent a shop there, it is best to
find where other gold merchants are and join in.

Or if you
would rather, you can rent a shop in a shopping mall.

Like
one of those Shoprite malls, it is more private, posh, and
still has a lot of visitors.

And you should know that this
business exclusively works in the cities, it will fail
miserably if attempted in a mid-sized town or village.

Where to Buy Your Jewelry

You can purchase your jewellery from other Jewelry stores
at a wholesale price though.

Another option is buying from
overseas, you will need a contact for this one, a gold
merchant who travels overseas often to buy his gold.

He
takes your order and multiple others extracting his
commission when the goods are delivered, because it is
cheaper in places like Dubai.

Buying from the general public is also a good revenue
earner in the business.

People would come trying to sell
their precious stone jewelries desperately perhaps due to a
death in the family, debt or just to raise some money for
something they had in mind.

The point is it is always at a
giveaway price, you should always be ready to jump at
those opportunities by putting away some cash for this
specific purpose.

But you must ensure that the person
presents you with a receipt to confirm it is not stolen
property.

Buy Showcases

You are not expected to stock the shop full of expensive
stones like it is some kind of provision store, no.

If that be
the case the startup cost would be astronomical.

For
starters it is best to have simple showcases for you
jewelries, made of wood and wrapped in black cloth
material and covered with glass.

The jewelries are laid in
the glass showcases.

You will need to carry a carpenter to the shop and show
him where you need them so that he can take dimensions.

You will need at least three of those a meter long each.

Buy a Gold Testing Kit and Other Essential
Tools

The gold testing kit is a combination of acids that will
enable you to identify authentic gold metals and how much
of it is used in a particular jewellery item.

You will also
need some other tools for picking really small pieces of
gold or diamond, and a measuring scale.

Be Mindful of Your Safety and Security

Once you are involved in this trade you don’t have the
luxury of staying up late from work.

You have to leave your
shop before it is too dark because you could be followed
and attacked by criminals, and just in case don’t carry cash
around with you except if you are dispensing of it
immediately.

Install serious security measures in your shop that will
ensure the safety of the goods like adding burglar proof
steel doors, purchase a safe to store the goods every night
before leaving for your home and install alarm systems.

Get Training

Trading gold, diamonds, silver and other precious jewellery
requires a specific set of skills, the testing of the metals,
weighing them and other primarily important tasks done
during the buying and selling of such jewelleries is only
done with a bit of knowledge and practice in the trade.

You could get first-hand knowledge from an already
established merchant, it is hard to find that way but it pays
off. Or you could join an online training course to learn the
essential skills in the business.

Alternatively hire someone
that is already into the trade like a helper from any gold
vendor’s shops to teach you after his work hours. After you
are satisfied with your training and knowledge of precious
jewellery and how to value them, you are ready to start.

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