This business plan outlines a gold trading venture targeting the Los Angeles, California market. The business will focus on two primary revenue streams:
The business will be operated by Arman Ashoori based in Los Angeles, with Siamak providing online coordination and support from Iran. With an initial investment of $10,000, the business aims to establish a profitable operation by leveraging the partners' experience in gold trading, Dubai sourcing connections, and the growing demand for gold in the Los Angeles market.
Gold market expected to continue growth with increasing demand for 14K/18K chains in Los Angeles.
Dual revenue streams from selling new gold chains and buying used gold create multiple profit centers.
Direct sourcing from Dubai wholesalers provides competitive pricing advantage.
Los Angeles represents a significant market for gold trading, with several factors making it an attractive location:
Several established gold buyers operate in Los Angeles, including Cash for Gold Los Angeles, Palacio De Oro, Cash Gold Exchange, and Hollywood Gold & Silver Exchange.
Current payout rates from competitors for buying gold from customers:
| Gold Type | Price Range (per gram) |
|---|---|
| 14K Gold | $46.99 - $73.08 |
| 18K Gold | $60.42 - $93.96 |
Most pawn shops offer between 30% and 60% of gold's market value, while cash-for-gold businesses typically offer 80-90%, creating an opportunity to gain market share through better rates and service.
Selling fine jewelry on Amazon Handmade and Etsy requires adherence to specific policies:
The business model of buying gold at wholesale prices and selling at retail prices has proven successful for many businesses:
Estimate the value of your gold items:
Register business entity (LLC recommended), apply for secondhand dealer license, set up business bank account, and establish relationship with Dubai wholesalers.
Secure small office/retail space, purchase necessary equipment, develop website and social media presence, and receive initial inventory from Dubai.
Begin local marketing campaign, start buying gold from customers, establish relationships with local retailers, and evaluate first month performance.
Begin Amazon Handmade and Etsy seller account setup process, prepare product listings, and prepare initial inventory for online sales.
Launch online sales channels, increase local marketing efforts, place larger inventory order from Dubai, and evaluate overall business performance.
Implement customer loyalty program, expand product range, consider hiring part-time assistant, and develop Phase 2 growth plan.
| LLC Registration | $70 |
| Franchise Tax | $800 |
| Secondhand Dealer License | $300 |
| Other Permits | $405 |
| Initial Inventory (50g at $84/g) | $4,200 |
| Shipping/Insurance | $170 |
| Branding/Website | $500 |
| Amazon/Etsy Setup | $600 |
| Advertising | $1,200 |
| Cash Reserve | $1,755 |
| Office/Retail Space Rent | $0 (home-based initially) |
| Utilities | $100 |
| Marketing & Advertising | $500 |
| Amazon/Etsy Fees | $240-440 |
| Other Expenses | $60 |
| Total Monthly Expenses | $900-1,100 |
| Initial Investment | $10,000 |
| Breakeven Point | Month 5-6 |
| First Year Total Profit | $37,560 |
| First Year ROI | 375.6% |
| Monthly ROI by Month 12 | 63.6% |
| Year | Annual Revenue | Annual Profit | ROI |
|---|---|---|---|
| 1 | $168,000 | $37,560 | 375.6% |
| 2 | $336,000 | $75,600 | 756.0% |
| 3 | $420,000 | $94,500 | 945.0% |
| 4 | $504,000 | $113,400 | 1134.0% |
| 5 | $588,000 | $132,300 | 1323.0% |
Yes, in California you need a Secondhand Dealer License to buy gold from customers. This license is issued by your local law enforcement agency (police department or sheriff's office) and requires fingerprinting, background checks, and regular reporting of all transactions to the California Department of Justice.
There are two main reporting requirements:
California law requires secondhand dealers to hold all acquired property for a minimum of 7 days before reselling it (B&PC 21636.1). This "holding period" allows law enforcement to investigate potentially stolen items.
Sales tax generally does not apply to sales of "monetized bullion," nonmonetized gold or silver bullion, and numismatic coins in California. However, sales of jewelry and other decorative gold items typically are subject to sales tax. Consult with a tax professional for specific guidance on your products.
This gold trading business presents a viable opportunity with strong profit potential. By leveraging the partners' experience in gold trading, Dubai sourcing connections, and targeting the diverse Los Angeles market, the business can achieve significant returns on the initial $10,000 investment.
The dual revenue model of selling gold chains and buying gold from customers creates multiple profit centers and business stability. With careful implementation of the outlined strategies, adherence to legal requirements, and focus on building trust within target communities, this business has excellent prospects for success and growth.
The projected first-year ROI of 375.6% demonstrates the strong potential of this business model, with breakeven expected by month 5-6. By following this comprehensive plan and adapting to market conditions, the partners can build a profitable and sustainable gold trading business in Los Angeles.