5. The transaction of old gold is an integral part of the jewelery business. What should be done to find out the profitability of it?

In the jewellery business, a large part of the sale depends on the exchange sale – ‘Saling new jewelry in return of old gold’. To find out the profitability of such old gold transactions, it is necessary to do the following four things.

  1.  Buying old gold, old ornaments at right price.
  • Prepare an appropriate method for buying old gold.
  • Purchase old gold strictly as per the predefined method only.
  1. Making more profits out of the purchased old gold.
  • Classify the Old Gold. Such as pure gold or Vedhane, reusable ornaments and gold for melting, etc.
  • Use bullion in old gold directly for sale.
  • After a little polishing or a little bit of repair, keep reusable ornaments for sale as a new ornaments and increase profits.
  • Send only such remaining old gold for melting that can not be sold out directly.
  1. Finding out the Profit and Loss in Melting of Old Gold.
  • Do refining (melting) of gold for melting by proper method.
  • After melting, compare it’s purity with the purity predicted by you and the price given.
  1. Bringing the old gold profits in forth, even through accounting.
  • Do the accounting of old gold properly.
  • Prepare the suitable method to reflect old gold profits in trading account.

To make all the aforesaid tasks easy and accurate, special features and refinery module has been given in Acme Infinity’s ERP software; which works in the following ways

  1. Purchasing old gold/ornaments at the right price…
  • As per the policy defined; the purchase rate of old gold based on standard rate, can be set in the Infinity software using formula.
  • In this jewellery software, if you have to do just buying of the gold, you can set a different rate and if you have to do exchange of it (saling new ornaments by taking old gold), then separate rate can be set.
  • Old gold being purchased is classified as, sold from your shop or sold from other shop, and according to that its estimated fine weight is calculated in Infinity Software.
  • The facility of, giving carat wise rate to the gold sold from your shop and offering purity wise rate to the gold sold from other shop by checking its purity (taking it’s fine weight), is provided in Infinity software. Now gold testing has brought more precision in the process.

With such features, in the jewelery business, losses can be avoided by purchasing old gold at the right prices

  1. To make more profit from the purchased old gold…
  • At the end of the day Infinity software creates a separate batch of old gold purchased throughout the day.
  • Out of such batches, bullion (coins) and ornaments that can be reused just by doing polishing, are separated easily.
  • The remaining gold is automatically sent further for the melting process.
  • This classification helps to increase profits in old gold trading in jewellery business.
  1. Recognizing Profit and Loss in melting of Old Gold…
  • Once the gold returns from melting, one piece of it is extracted as lab sample and its purity is independently tested in the lab
  • The remaining gold after taking the Lab sample, is sent for refining in the form of metal ball; to find it’s fine weight
  •  Now, How much profit or loss has been made in old gold received against the money given to customer, Lab Report and finally in the fine gold remained, is understood easily and correctly due to the batches (lots) made in Infinity software.
  • Such batches, are also made branch wise. So that the profit of old gold is also available branch wise.
  • Such batches can also be made date wise.
  1. To bring Old Gold Profits in forth, even through accounting…
  • An independent trading account of old gold is available in Infinity software.
  • Once the fine is received from Gold smith; the old gold is converted into 22 carat, standard bar or coin. And the valuation of old gold converted into new ornament is automatically derived from the URD weighted average.
  • Thus, you understand the old gold profits made through the trading account, in the jewelery business.

In this way, in jewellery business, through the Acme Infinity’s ERP software, you get the worth price for the old gold, the profits in old gold increases by classifying it, the profit-loss is accurately checked after melting and the most important thing is old gold profits are shown in separate trading account. And because of this, the owner (jeweller) does not need to be busy (engaged) in the old gold deals.
As it is said….. Old is Gold, that means Old Gold deals are profitable deals!