# Buying scrap?



## Anonymous (Aug 27, 2008)

I have owned a small jewelry store in a Swapmeet in Orange County California for the last four years. A few months ago I melted a bunch of scrap gold from repairs and broken jewelry and made a pretty penny. I am now thinking about buying scrap gold, mostly broken jewelry and such from customers. The only problem is that the owner of a pawn shop down the street always comes around threatening to turn the jewelry stores in the swapmeet into the city if we buy scrap. Can anyone direct me to laws and regulations about buying scrap gold in California? I have learned a lot lurking for just a few hours on this site and hope to learn more.
Thanks,
Levi


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## goldsilverpro (Aug 27, 2008)

I would go to city hall and ask.


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## Anonymous (Sep 21, 2008)

my thaughts exactly or the city may require a license, my town only charges 15.00 a year for the business license.

If it is a swap me/ flea market place, they already have the license and your table is covered by the fee you pay to be there. Once again, this is at least how things work in my part of the world.

Jim


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## Pawnbroker Bob (Sep 21, 2008)

You are required to have a secondhand dealers license that is issued by the Department of Justice through your city licensing agency. It is against the law in CA to purcase anything from a private party if you are doing it for a profit or business. 

You have to fill out forms for each purchase inculding a drivers license, description of the purchase, thumbprint and submit it to the local pd daily. They are looking for stolen items. 

I have two pawnshops in CA. All your purchses must to be held for 30 days while the DOJ and pd check for stolen items. Can't sell till then. 

Years ago if you did less than 20% of your biz in scrap or used jewelry the license was not required. Now everyone has to have one. Coins and bullion shops are an exception and most wont buy scrap animore because they need the license. A lot of cities also have zoning requirements for license issuance.

California Business and Professions code 21625 

Link

http://www.leginfo.ca.gov/cgi-bin/waisgate?WAISdocID=03510829109+0+0+0&WAISaction=retrieve

Pawnbroker Bob


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## Pawnbroker Bob (Sep 22, 2008)

Yup, it is sad.I was born and raised here. 

We have the highest property taxes, sals tax, business, gas, tobacco and income tax in the country. The highest rate of incaceration. The most social services. The highest welfare dol. The state is broke literally and figuratively. Our state legislature has been democratic controlled for the last 30 years and is constipated beyond belief. It scares me to think that someday those who have destroyed our state will infect the rest of the country. I wouldn't wish that on anyone.

I'm gonna get off my soapbox.

In the state code for the secondhand dealer license it states it was inacted to track used goods for the purpose of making sure the sales tax was being collected and reported. They make it really tough for the small businesman. 

PB


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## nicknitro (Apr 29, 2009)

PB, 

I wonder if many other Pawn Brokers have adopted this, without the fees of course. Many states require small buisness such as pawn brokers to have purchases from private sellers investigated by the PD. It makes sense, if they don't want to charge the buisness owner. LOL I had a friend who sold something for his "friend" one time because he was going to the pawn broker to sell something at the same time. Turned out the item was stolen, Pd investigated, and came to my friends house and asked him where he got it. Point being, a lot of stuff is sold under the table, and it is very easy to sell stolen things. 

I think this is why some independants like Mike Huckabee pushed for "Fair Tax" to eliminate the need for policeing Income. Tax the sale of things, then people who make their money under the table, "Drugs, Prostitution, Theft" Would pay their fair share of income tax as well. LOL

I guess damn whackjob Independants. LOL

Just kidding I think Huckabee is a real down to earth guy.


Nick


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## Anonymous (Mar 16, 2010)

been in the jewlery biz 20 years no lis. to buy and resale {tax i.d.} i am buy now silver and gold now the pawn shops send there silver biz my way i would tell that pawn shop guy to go piss up a rope!! this is a free country !!!!


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## Oz (Apr 1, 2010)

vnspramod,

You have made 3 posts in 2 days, none are asking a question or helping others refine. If you wish to buy gold there is a section at the bottom of the forum called “Refiners, Buyers, Assayers” your posts belong there. Please edit your posts removing the links to Joel's gold. If you choose to offer to buy members gold in the appropriate section it may be helpful to tell us what percentage of spot you are paying based on gold content.


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## goldsilverpro (Apr 1, 2010)

vnspramod,

I deleted all 3 of your posts. If your only purpose is to buy gold, post in the Refiners, Buyers, Assayers category. Commercial posts in any other category will be deleted.


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## Chumbawamba (Apr 2, 2010)

My solution for dealing with onerous and numerous California laws and regulations that attempt to control every last waking second of our lives here is to simply ignore them. When they're down to human life functions like breathing and eating as a last frontier for taxation and regulation, that's where I basically draw the line. I do not consent and I will not obey. I am not a subject of the State. I am a sovereign human being. I am prepared to reinforce my rights with the Law and with Arms if necessary (thank you, 2nd Amendment).

You might think that these laws are enacted to assist law enforcement (btw, whatever happened to peace officers?) but as PB Bob pointed out its really just a ruse to make sure the good subjects of the King are paying their tribute. The same type of law was recently enacted for scrap metals after the spate of thefts that occurred during the 2008-2009 timeframe. If you bring in a load of scrap and the scrapman doesn't know you, he's required to record all of your identification, including copying your driver's license or ID and taking a thumbprint (no, I'm not kidding). You must also sign a written declaration that you either own or have permission to scrap what your brought in. I assume rectal exams are coming up next (no, I'm not kidding here either).

Fortunately, as someone who's been doing business with my scrapper for a long time, and having already been on file with them, and owning a "legitimate" (I don't like those kind of words because it implies someone who isn't running a business is not legitimate) scrap business of my own, I was spared all that nonsense. But don't be fooled for a second. This new regulation helped keep the dirty tweakers from profiting from their ill gains, but down the road (if not going thru legislative machinations as I write) they will use this information to tax scrap metal transactions. Just give it time.

Anyway, sorry for the rant but as someone who is on the front lines of this fight against increasing government tyranny I can't help but to speak out in the hopes of fomenting anger and resentment in others that haven't yet put two and two together. You either take a stand here and now or lose everything later.


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