FLORENCE — As a pawn shop owner, Dave Hemmingsen depends on gold sales to keep his business going.
In fact, he said, the sales of gold and other precious metals account for 25 to 30 percent of his sales at Fludd’s Pawn and Gun in Florence.
But now, the illegal sale of gold is becoming a threat to his business.
Florence Police Maj. Carlos Raines is trying to prevent these illegal sales. He said in many cases, they happening at “gold parties.” These are events people host with the intention of purchasing gold from attendees. They then trying to gain a profit by selling them.
It’s a fast way to make cash, but it’s also illegal.
State law requires a permit to practice the business of purchasing precious metals, which include gold, silver and platinum. The buyers also must operate only from a permanent place of business. Raines said if a person or group is hosting the gold parties at a home, they are likely doing so illegally.
These illegal sales hurt businesses like Fludd’s because the individual buyers don’t have the overhead costs a business does. As a result, they’re able to pay more for the items.
“That’s a very big concern,” Hemmingsen said. “It would be for any retail business operation. You don’t want somebody setting up in your town that’s not paying the same fees, the same licenses to do the same business you’re doing.”
Raines said in many cases, attendees of the parties may not know the parties are illegal.
Recently, he’s worked on informing the public about the law by preparing and distributing packets with all the necessary information about the law and forms needed to obtain the proper permit.
“We simply want people out there to realize, that if you want to sell your scrap metal, that’s fine, do it,” Raines said. “But you need to go to a location that has a permit in place.”
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