Buying Your Customer’s Jewelry: Profit Center or Added Risk?

Given the market realities today, customers are increasingly asking jewelers to buy their jewelry. Consumers are looking to use their unwanted pieces to acquire some ready cash or put it toward the purchase of new jewelry. What should a jeweler consider in this area to avoid liability and risk? First, a jeweler should be aware that if purchases from the public and subsequent sale of precious metal, stones, or jewels in any one year exceed $50,000 in the aggregate, they will have to institute an anti-money-laundering program pursuant to the USA Patriot Act. (Visit the Jewelers Vigilance Committee Web site at www.jvclegal.org for more information.) Next, there are usually state or local laws targeting the sale of stolen property that often require jewelers to acquire identification from the person offering the jewelry for sale and further require the jeweler to keep a log with a detail
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