Taking your unwanted jewelry to a gold broker became a little harder in October when North Carolina rewrote the law to toughen standards for those who buy unwanted precious metals.

Steps were taken by the N. C. General Assembly to protect not only those selling precious metals, but those who may have fallen victim to a robbery or theft that resulted in the loss of jewelry and other precious metals.

On Feb. 2, the Jonesville Police Department arrested Christopher Michael Elkins, 21, of Chester, S.C. and charged him with failure to comply with the new Precious Metal Purchasing general statute.

Elkins had set up a purchasing site in a local hotel where he was buying gold and other precious metals from the public for the business.

“Chief Reece called the district attorney’s office advising of the case details and the district attorney advised to proceed with charges on Elkins for the violations,” Jonesville Police Department Detective Sergeants Vestal said.

“The statute is an effort to modernize the record-keeping, update the permitting requirements and to protect consumers against illegal and unethical dealers,” Vestal said. “The problem with these companies is that are popping up offering to buy your gold, silver, or other precious metals and they are not always legitimate.

Some of the companies move into an area, set up a site, send out fliers advertising they will be in the area for a particular number of days, and then purchase the metals at a reduced rate,” he said. “Supposedly, the dealers pay the seller by the weight of the metal, but in cases across the country, dealers are using scales that have not been calibrated and getting away with more metal than the value of such given to the customer.”

“This is an act to modernize the record keeping of precious metals purchases by dealers and to subject all dealers in precious metals to similar record-keeping requirements,” Vestal said. “It will increase precious metals permitting fees, make it a requirement that a criminal history record check be conducted on employees of precious metals dealers, and to make various other changes to the precious metals permitting statutes.”

Pawn shops operate under their own requirements of record-keeping and retaining precious metals for a certain number of days prior to offering for resale.

The reworked general statute governing the sale and purchase of precious metals now requires dealers to retain the property for ten days and to turn into the local police a list of items purchased. This allows officers to check the descriptions of items such as jewelry, silver service sets and items such as sterling silver picture frames against lists of stolen items.

“One of the problems before was that if anybody took a ring, necklace or other type of metal into a broker and sold it, the broker had no idea if the item was stolen,” Vestal said. “With this system, brokers must retain the property and then officers can check it against descriptions of stolen property. Sellers must also provide a photo identification and address to the broker. This should cut down on the number of fly-by-night operators that often cheat people.”

Another requirement of the statute is that scales must be calibrated and certified. Dealers and/or buyers purchase gold, silver, that has the 925 mark, which means pure sterling, platinum, and palladium can not be located in a temporary location.

“When people take their gold or silver in to be sold, the broker weighs it and pays according to a price set up for each gram of the metal,” he said. “When the scales are inaccurate, the seller is often getting an amount that is much less than the actual value of the metal.”

This particular statute will keep brokers from coming in, buying and selling precious metals from a tent set up in a parking lot, or pulling a trailer in that’s set up to look like a mini showroom.

“No business can be conducted in any structure not permanently affixed to the ground or in any room customarily used for lodging in any hotel, motel, tourist court, or tourist home,” Vestal said.

Businesses are also required to post the permit in a prominent place on the designated premises. The permits are valid for a 12-month period from the issue date and the permit cost is $180. The fee is not refundable even if the permits are denied or later suspended or revoked.

A permit will not be issued for any applicant who has been convicted of a felony involving a crime of moral turpitude, or larceny, or receiving stolen goods or of similar charges.

Permit applications are available at local police stations and sheriff’s departments throughout the state.