Sonora Hotels Host Gold Buying Events - Legal or Not?

They run fancy full page ads to get your attention.    These events often promote that they are buying for a "limited" time to create sense of urgency.    We are talking about out of town sometimes even out of state gold, silver, coin and jewelry buyers.

You will also find that after announcing  something like "4 days Only" , that they run follow up ads that state "Held over an additional 4 days".  So much for the "limited" time and the sense of urgency.

• Problems: Mobile Gold Buyers/Citizen Complaints
• Time: Weekends During March 2013
• Hosting Hotels: Sonora Oaks Best Western and Aladdin Motor In 
• Location: East Sonora, CA
• Actual Locations of Businesses:  Southern California and Hawaii
• Law Enforcement: Not familiar with laws and regulations
• Licensed Status: No Second Hand Dealers Licenses on file for these businesses for the hotels address as required by law.
• Liability: Mobile Gold Buyers and Hosting Hotels

But are they following the law?  The problem that exists is that very few people understand there are laws that govern gold buying events, these mobile gold buyers ignore them and law enforcement does not have the time or knowledge needed to peruse the crime.

Complaints by customers of Calaveras Coin & Pawn include accusations of these "out of state fly by night gold buyers"  is that they are "ripping people off" (not giving them fair market value) and "not filing out forms" (JUS123 as required by the Department of Justice) and turning them in locally to the Tuolumne County Sheriff's Department.  They are "not getting business licenses" (as required by Tuolumne County).  "They are taking the money out of the area along with the goods" (not abiding by a 30 day hold policy as required by law) "taking the items either out of the county and sometimes even out of the state" leaving victims of theft (in the Foothills and Mother Lode) with no way of ever be able to "identify their items" and some folks even believe even "immediately melting them down."  

Aladdin Motor Inn - Sonora, CA (Gold Buying Vendor From Hawaii)

   Unfortunately unscrupulous precious metal dealers setting up temporarily and not from the area many times paying grossly low prices for merchandise adversely effect the local economy and often do not follow the law (many not requiring valid identification from the person selling their gold or silver, no signatures, no photographs of seller or no fingerprints) and therefore are a perfect avenue for burglars to fence stolen goods.  Complaints from residence of Sonora have stated that these "gold buying events, have gone on twice just this month at the Aladdin Motor Inn and Best Western Sonora Oaks."

Calaveras Coin & Pawn is a family run, locally owned and operated business, serving the Mother Lode Community for over 25 years.   We have a vested interest in the community and in providing the very best for you.   You will not be rushed to make a decision.   You can take all the time you need, to make the best decision for you.

We work closely with law enforcement both on the federal, state and local levels.  We even provide victims of theft a free guide to help them recover their stolen items that many times show up in the hands of "those running hotel gold buying events."  If you should see one of these events taking place please either call the law enforcement in the jurisdiction of the event or call us at (209)736-COIN.  Together we can protect our community from illegal business activities, keep money local and help fight crime!

The Law:

California Business and Professions Code (B&P) §21626(a) defines a secondhand dealer as “any person whose business includes buying, selling, trading, taking in pawn, accepting for sale on consignment, accepting for auction or auctioning secondhand tangible personal property.” (this includes gold and silver found in items such as jewelry).

A "secondhand dealer" must be licensed. (B&P Code 21640) (Not just a city/county business license but a "Department of Justice Second Hand Dealers License" - requiring a background check and fingerprinting.)
All transactions must be done at the location on the license. (B&P Code 21642.b.1)
All secondhand dealers shall report all transactions to the Chief of Police or Sheriff. (B&P Code 21628)
Every secondhand dealer shall hold for 30 days all tangible personal property acquired, and shall make it available for inspection by law enforcement. (B&P Code 21636)
Violation of any of the above is a misdemeanor with up to a $1,500 fine and/or 60 days in county jail. (B&P Code 21645).
If you are the host of, or otherwise allow at your location, a gold party that is not in full compliance with the laws that govern and regulate a "secondhand dealer" (requiring a Department of Justice License, you may be held liable in a crime. CA Penal Code §31. [“All persons concerned in the commission of a crime, whether it be felony or misdemeanor, and whether they directly commit the act constituting the offense, or aid and abet in its commission,...are principals in any crime so committed.”] 
Also if the business transacts a certain amount in precious metals yearly a "Anti-Money Laundering Plan" (AML Plan) must also be on file with law enforcement and the hosting entity.

Come to the name that folks of the Foothills & Mother Lode have been coming to for nearly 25 years, Calaveras Coin & Pawn in Angels Camp.  Family owned and operated.  1283 S Main St. in historic downtown ANGELS CAMP (DOWNTOWN FROG TOWN).  (209)736-COIN