Buying and selling gold and other precious metals has become a significant part of today’s jewelry business. (The just-released 2009 Jewelers of AMerica Cost of Doing Business Report revealed that karat gold jewelry is the fourth highest product category for retail jewelers in 2008.) But will your policy cover you -- and at what value -- if scrap gold is lost in a robbery or during shipment?
To protect your business, take Jewelers Mutual Insurance Company advice and comply with local, state and federal requirements, which may include:
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Obtaining a secondhand dealer’s license
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Requiring identification of the seller
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Having proper documentation, which is essential.
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Keep a daily log that includes the weight of scrap metals purchased each day and the market value as of that day.
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Complying with the USA Patriot Act if you purchase more than $50,000 from the public in one year.
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Extra Tip: Jewelers of America members have access to guidance on how to set up an Anti-Money Laundering policy and process, visit www.jewelers.org and log in to the Members-Only section for the materials.
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Jewelers Mutual also encourages its policyholders to:
- Ship via the United States Postal Service using Registered Mail or Express Mail. As a free policyholder benefit, Jewelers Mutual provides up to $25,000 limit of insurance on Express Mail and $100,000 limit of insurance for Registered Mail.
Take The Tip:
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Get more info on how to protect yourself when buying back gold and learn about Jewelers Mutual’ Scrap Gold and Metals Coverage Option by visiting http://www.jewelersmutual.com.
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Also visit the Jewelers Vigilance Committee at www.jvclegal.org for more information.
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