Start a Precious Metals Brokerage for Wealthy Clients

1. 1

   Build the compliance foundation first

   Precious metals dealing is money-laundering sensitive, so start with the rules: US dealers meeting thresholds must maintain an anti-money-laundering program under federal rules, several states require precious metals dealer registrations or licenses, and cash transactions above reporting thresholds trigger filings. Get compliance advice for your state, write your AML and know-your-client program, and treat it as the bedrock of a business built on trust.

2. 2

   Choose the brokerage model over inventory

   Holding inventory means price risk and heavy capital; brokering means executing against client orders through established wholesale dealers and mints, taking your margin on the transaction. You quote a client, lock the wholesale price, collect cleared funds, and the metal ships to the vault or the client. This model keeps startup capital in the tens of thousands rather than millions and lets you scale with order flow instead of balance sheet.

3. 3

   Establish wholesale and product knowledge

   Open accounts with reputable wholesale dealers and learn the product landscape: sovereign coins, bars by recognized refiners, and the premium structures of each, since dealer gross margins range from roughly 2 percent on large bars to 20 percent on certain retail products. Wealthy clients buy recognized, liquid products, and your knowledge of what to buy and what to avoid is part of the service.

4. 4

   Arrange insured allocated vaulting

   Serious clients rarely want bullion at home; they want allocated, insured storage in professional vaults, with metal held in their name rather than as an unsecured claim. Build relationships with vaulting providers, understand allocated versus unallocated storage cold, and be able to explain custody chains and audits. Platform benchmarks show dealing commissions as low as 0.05 to 0.5 percent with separate storage fees, so your value at higher margins must be service, discretion, and guidance.

5. 5

   Define the private-client service

   Your offer against online dealers is the human desk: portfolio-scale purchases executed carefully, discreet delivery or vault allocation, clean documentation for the client's estate and tax advisers, periodic valuations, and eventual sell-side execution. Price transparently: quote your all-in premium over spot and the storage costs, because sophisticated clients compare, and transparency is what converts them from anonymous websites.

6. 6

   Win clients through wealth networks

   The buyers are business owners, families diversifying after liquidity events, and internationally minded clients who want assets outside the banking system. They arrive through wealth advisers who get asked about gold and have no execution partner, estate attorneys, and word of mouth in business communities. Education, honest explainers on premiums, storage, and product selection, positions you as the safe pair of hands.

7. 7

   Operate with bank-grade process

   Every transaction needs verified identity, documented source of funds where thresholds apply, cleared payment before metal moves, insured logistics, and written confirmations. One sloppy transaction in this industry can mean fraud exposure or regulatory action. Process is your protection and, for the clientele you want, it is also the product.

Do not take our word for the money. Put your own numbers in and see what this idea has to earn before it works. Free, instant, no account needed.

Best for: Finance and sales professionals with strong networks who value process, security, and discretion

Not for: This is not for anyone tempted to cut corners on AML, identity, or settlement, because this industry's fraud exposure and regulatory scrutiny are unforgiving. It is also not a market-timing or trading play: you are a service business earning spreads on execution and trust, not a speculator, and clients seeking investment advice about metals belong with registered advisers.