Gold parties may not be legal under SC law

By: Michelle Carolla | SCNow
Published: October 30, 2008

News 13 recently did a story on gold parties. Gold parties are taking off all across the country. Tough economic times have people looking for money anywhere they can find it. The popularity of these parties is growing but it's new territory when it comes to complying with the law.
Gold Parties are hosted in homes, clubhouses, etc. Guests bring their gold and the dealer pays them a cash value for it. The dealer then turns it into a refinery for a profit.
The problem now is this is a new trend and that people aren't aware of the law that governs these parties.
The dealers in precious metals law http://www.scstatehouse.net/code/t40c054.htm stipulates a dealer is any person, corporation or partnership who buys precious metal from the general public whether in bulk or manufactured form with an intent to obtain a monetary profit. It also states you must operate out of a permanent place of business.
Up to now, the law applied to pawn shops and jewelry stores, but an attorney with the South Carolina Department of Consumer Affairs told News 13 anyone handling precious metals for profit fall under this law.
Pawn shops themselves follow strict rules to stay in compliance with the law. Randy Whitley owns a pawn shop in Myrtle Beach. "If they bring in gold to sell, we separate it accordingly to fineness, 10k, 14k or whatever,” said Whitley. “We weigh it and check the markets daily and determine what we can pay for it at that particular time." He also said per state law, they submit a record to law enforcement each day and hold the metals for seven days.
The company we featured in our story said they were unaware of the law and will try to secure a permit. The problem with the parties is they are held in homes and clubhouses and this is in violation of the code.
If you plan to become a dealer you can apply for a permit with your local police department. They will determine if you meet the requirements.
The law is comprehensive and should be read in it’s entirety before submitting your permit application. This will tell you whether you possess the necessary requirements.

Gold parties may not be legal under SC law

Gold Parties (Added: October 30, 2008)

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