Jewelers Mutual Insurance Co., Neenah, Wis., recommends record-keeping procedures for jewelers who deal in estate jewelry or other jewelry purchased from non-jeweler sources. Jewelers who purchase estate jewelry or other jewelry from a private party (non-jeweler) for resale must be able to verify the existence and value of this property in the event of a claim. To document the existence and value of the property, the company advises jewelers to prepare and keep the following information at the time of the acquisition:
Name, address, telephone number, and driver’s license number of the seller.
A detailed and itemized list of all items sold to you. This list should include a description of each item, your cost for each item, the date purchased, and the name of the seller.
The canceled check used to make the purchase. If cash is used to make the purchase, you should keep records that will identify the source of the cash and the exact amount of the purchase price.
In a barter situation, you should make and keep a specific listing that identifies all of the items involved in the complete transaction.