I just read that the state of Illinois is trying to pass legislation
that creates the Precious Metal Purchasing Act. This "provides that a
person who is in the business of purchasing precious metal shall
obtain a proof of ownership, create a record of the sale, and verify
the identity of the seller. Provides that a person who is in the
business of purchasing precious metal shall not pay for the precious
metal in cash and shall record the method of payment. Requires the
purchaser to keep a record of the sale for one year or, if the
purchase amount is over $500, for 5 years. Provides that a person who
violates the Act is guilty of a petty offense and subject to a fine
not exceeding $500. Provides that the Attorney General may inspect
records, investigate an alleged violation, and take action to collect
do you have any additional info on this? All I know is that it is a
proposal from the state of Illinois.
I would check on how it applies to jewelers - and if there is any
exception based on being in business as a jeweler whether a retailer
or independent, because you can bet retail chains, particularly
corporate ones, not based in IL will be immune (not that they don't
keep accurate records of their metals costs anyway)..
It seems to me this is intended 2) to end the proliferation of "gold
Buying" businesses, parties, and the other rip-offs as well as,1)
allowing the state/big brother to do what it damn well wants and who
cares about civil rights, personal freedom, etc. All-in-all illegal
drug money is easily laundered this way as is a lot of crime related
money when a large amount of cash can be used for a few oz/s of gold
coinage and safely tucked away (in mexico, Canada or Naples in a
format other than gold !) and government will somehow point the
masses to believe this will "help in the war on drugs"..oh Please!
it's a loosing battle and won't be won ever, by anyone except the
dealers and large scale cartels, producers, etc. The world wants
drugs-plain and simple and if metals serve their purposes as portable
wealth then they'll get it in another state. What is IL thinkinge.
Probably 90% of so called "Gold buyers" should be put out of
business for a million reasons *besides* ripping off the public, pawn
stores being the primary rip-offs promoting the big buy, when they
haven't a clue about the worth of some items that exceed spot prices.
I am quite aware of how many people I know that have sold gold and
silver items- but told me after the fact- and received maybe 15%-20%
of the real value from a pawn shop when I sell scrap and get 98% or
more from a refiner! I walk in and out with a cheque in hand in under
an hour- and pick up lots of stones off the carpet while I'm sitting
there (from people hastily removing them or they simply fall out and
get vacuolated up at the end of the day) !
Pawn shops are getting wealthy on this and it infuriates me. I
called a few here and asked them what percent of spot they pay- out
of 15 shops only 1 told me an answer, the rest hemming and hawing and
trying to avoid the subject- when I finally (admittedly) told them I
was with the FTC and investigating their pay-out structure did I get
an answer- though in 9 out of 10 stores i had to hold on while they
checked on a figure!..Yeah, it was wrong, but if they can't offer an
accurate price to the general public they shouldn't be dealing in
metals. And if they don't know x coin is worth more than the metal
weight and pay that rate, they shouldn't be in the business. So I
DETEST hearing the State of Illinois may be trying to IMPOSE this
law, if it is doing that, but more than that i hate "gold buying"
schemes - or businesses all of a sudden buying metals and ripping
people off with the promise (as one locally produced commercial says)
"fill my hand with your old, broken gold and I'll give you $1,000"
when the gold, most of it 14 kt is probably worth closer to $4,000.00
or more based on what i see in the person's hand in the commercial.
For a While I was posting the spot price of gold and silver on the
New orleans Craig's List - a hack that got shut down after 6 months-
but that was six months of consumers armed with they
wouldn't have even known where to find in most cases, and information
they needed to negotiate a fairer price for their scrap. some of
ehich shouldn't be sold as scrap, but at auction by a reputable
auction house. The refiner i deal with has a friend he lets go
through the daily haul of silver and he picks items worth far more
than the spot price, pays the spot and then goes and sells the items
at auction- not fair because a person is ignorant to what they are
selling. This particular business will tell some people their
coinage is worth more than spot, but has little idea on
silver/hollowware. nonetheless- it's a skewed profiteering scheme.
In fact this dealer decided since us smaller independents were going
in twice a month or weekly in some cases, to raise the gold minimum
to 100 dwt. to get the 98% rate we had been getting for years and
years to cut down on the # of cheques they were writing (by computer,
so what was the big deal in the first place. hit each pile of gold or
Pt with an XRF on separated metals and a weigh in. totalling.less
than 5 minutes.- when some independents may only have generated 20
-25 grams of 18-22kt (average kt) in a month. .?).
Sorry for the rant, but its a horrible situation and these gold
buyers should be restricted not the public's ability to spend money
on what they want to buy with it- it's already taxed, and taxed, and
this state has sales taxes too. so the govt/s are getting more than
thier fir share when disabled people got a 1.7 % cost of living
raise- that translates to an individual trying to live on $652.00 a
month getting a raise to $668.00 a month- Cost of Livingethat barely
covers a gallon of cow's milk much less real cost of living
AHHH !(horrified at what I just had to say !!!) politics have no
place on Orchid I guess. rer
My understanding is that this is at present, a state, county and
city ordinance/laws (USA). In my state you are required to have a
'gold dealers' license to purchase from the public. Every jeweler
store buys, we have very few pawn stores. (This is due to interest
rate limitations. It makes no sense to pawn in a state that limits
interest to 1% per month when the next state over allows 20% per
month.) There is also a county license required.
And a local city license if you conduct business within the city
Someone has to be licensed for a gold buying party. A retired police
captain and his wife were the ones doing parties in a 100 mile
They were both killed for $1,000 at a party. The state I was in
previously also required a business use license/tax. The annual fee
was 1/10th of 1% of gross sales. That adds up. They had three county
employees that searched the internet for home based businesses, eBay
sellers and multi-level home party businesses for their fees.
In addition to being licensed, I understand you have to issue a 1099
if you pay out $500 or more. Again, this is part of the USA Patriot
Act. The same as us getting 1099's this year from PayPal, credit card
companies, bank deposits and processors.
It is for our own safety I am told.