Bill would require hold on acquired items

The Indiana House of Representatives voted on a bill that would require precious metal dealers to withhold acquired items for 10 days.

According to House Bill 1188, precious metals dealers will also be required to have a 12-month lease for their buildings. The House approved the bill last Thursday with a 95-1 vote and moved to the Senate.

The bill also requires metal dealers to require government identification to be shown of people selling gold, silver or platinum. The proposed legislation also calls for dealers to provide a description of all metals purchased to law enforcement agencies.

Rep. Gail Riecken, D-Evansville, who co-authored HB 1188, said there has been a problem in her district with individuals stealing valuables then taking them to cash-for-gold shops.

Once gold is melted, it often not retrievable. Riecken said the 10 days in holding would allow police time to track down potentially stolen or displaced gold.

“There are problems in many of the communities,” Riecken said. “The victims usually lose things that are irreplaceable.

Many jewelry stores are exempt because they have an annual revenue of more than $20,000. However, pawn brokers must abide by similar regulations proposed by HB 1188.

Jack McCroy, owner of Ace Pawn Shop in Bloomington, said is in favor of gold dealers having to abide by the same laws.

“Here at the shop, we take a state ID, and we hold that item for 10 days,” McCroy said. “We give a full report to the police department so they can check it.”

Rep. Christina Hale, D-Indianapolis,said cash for gold stores are commodities businesses which almost immediately melt precious metals.

“We probably have some well-intentioned business owners that ensure they are not purchasing stolen items,” Hale said. “The issue is there is no governing code.”

Hale, whose district includes the busy Castleton shopping district on the north side of Indianapolis, said a number of her constituents alerted her to the issue.

“This is just a way of doing better business in a way that will protect citizens, taxpayers and consumers here in Indiana,” Hale said.

Indiana State Police Sgt. Tony Slocum said ISP tries to pay attention to what time crimes occur and ensure that troopers on patrol are on the lookout for suspicious activity. This is in hopes detering criminals from breaking into homes.

“Indiana’s been a state where theft of jewelry has always been a state on our radar,” Slocum said. “Obviously the valuable the item is, the more attracted criminals are to it. Theft in general is something we’re trying to get a handle on.”

Ed Smoot, manager of Gold Buyers of America in Bloomington, said his location already requires photo ID, fingerprints sellers and also records a description of all items they purchase Smoot said his location already holds gold for seven days.  

“You’d have to have a piece of gold for ten days before you can ship it to the foundry,” Smoot said. “If you have to wait that long it would be very detrimental to the business.”

Smoot said he has only had four or five instances in the past three years in which there has been stolen gold at his business. He also said any time they suspect stolen gold, they notify the police.

“We buy it here, and it’s shipped out within a week,” Smoot said. “It could be as much as one day and as much as seven depending on which day of the week we buy it.”
He said the crew then proceeds to the foundry where the gold is given a second examination, and it is smelted and the metals extracted.  

“So all of that process takes three to four weeks before it is completed,” Smoot said. “Our whole system is set up for that schedule and if we have to change that schedule it won’t be advantageous for us at any means.”

However, Smoot said he is aware of questionable ethical practices among his competitors and understands why legislators want the bill.