Those who buy scrap gold for resale find it to be a financially rewarding venture. Investors who buy it enjoy the opportunity to own gold below spot.
Until recently, this method of buying gold was mostly performed by pawn shops and coin dealers.
When the price of gold reached $850/oz in 1980, many of those types of businesses made a fortune from the stampede of people selling their used gold items like rare coins and jewelry.
As the news spread about the profits being made it identified a whole new type of business opportunity for entrepreneurs. Jewelry and coin shops began to open in nearly every city and town across America.
Today, with the price of gold rising to new levels, there are more people taking advantage of this method of buying, and there is an ample crop of sellers as well. In fact, in 2009 alone there was over 1200 metric tonnes of scrap sold to refineries. That's a lot of gold!
With the digital age upon us the Internet is rapidly becoming the new way to attract sellers. It gives people the ease of sending their valuables off and receiving a check in the mail.
But, don't dismiss the old fashion ways of buying used gold. Placing a classified ad in the newspaper and meeting with the seller face to face is still the best way to acquire it.