Duluth police say they want to treat jewelers and antique dealers like pawn shops when it comes to their dealing in precious metals.
A draft city ordinance calls for any Duluth business that purchases precious metal items from the public to be licensed and equipped to provide daily electronic reports of its transactions to a statewide system. Any business purchasing an item that’s more than 1 percent gold, silver or platinum by weight would need to provide notice of the transaction and furnish a picture of the item or items purchased — as well as a color photo of the seller.
The ordinance would hold jewelers, coin shops and antique dealers to disclosure requirements similar to those now in place for pawn shops.
But the proposed ordinance has received a chilly reception from several in the local business community, including Dave Blustin, owner of Garon Bros. Jewelry, who called it “onerous.”
“I can’t imagine asking a little old lady customer if I could take a mug shot of her to send to the police,” he said.
Duluth Police Sgt. Chad Nagorski said the system would provide “a great investigative tool.”
He noted that in 2011, Duluth experienced a 27 percent surge in burglaries and many of the items stolen contained gold, platinum or silver that could be turned into quick cash.
“Our goal is to decrease the number of burglaries and increase our success in solving cases,” Nagorski said. “We want to return stolen items to their rightful owners and hold the right people accountable for victimizing others.”
Jay Seiler, co-owner of Security Jewelers, said he sees little reason to increase scrutiny of his shop’s purchases of unwanted jewelry, cutlery and other precious metal items, often from well-known customers.
“We’ve got a great track record. I don’t think we’ve ever had an issue with a stolen item,” he said. “I’m concerned about having more hoops we need to jump through.”
Adam Bohlmann, owner of PawnDuluth.com, said he doesn’t understand why the proposed rules would cause a fuss. His business has been using the same automated reporting system since 2004.
“It’s about time they did this,” he said. “Of course there’s some added labor and expense, but I don’t mind. For me, it’s worth it to make sure nothing in my store is stolen.”
Chuck Armstrong, community affairs director for Pawn America, said he, too, supports Duluth’s proposed ordinance change. He noted that if the ordinance passes, businesses purchasing precious metal items in Duluth would be required to do little more than what pawn shops in the community already have for some time now.
“For years, we’ve been held to a higher standard,” Armstrong said. “I was pleased when I saw Duluth’s proposed new ordinance would go a long way towards creating a more fair and equitable playing field.”
Armstrong said other communities have been making the shift to mandatory reporting systems, including Bloomington, West St. Paul and Inver Grove Heights in Minnesota, as well as Sioux Falls, S.D., and Madison.
Sgt. John Elder, manager of the Minneapolis Police Department’s intellectual property initiative, said that as more cities join the reporting system, it becomes a more useful tool for locating stolen property, as well as burglary suspects.
“We’re letting good people sell the stuff that’s rightfully theirs, and we’re catching the ones that are doing something else,” he said.
To participate in the automatic reporting system, Elder said a business needs only a digital camera and a computer with an Internet connection. The necessary software is provided to participants free of charge.
Still, Bill Jahn, owner of Lake Superior Coins, worries the system could prove unmanageable for small shops like the one he opened in Duluth two years ago.
“If I had to report on and photograph everything I bought and sold, it would probably take me four to five hours a day,” he said.
Jahn suspects many of his customers would have little patience for the new rules, including the required personal photo.
“I fear people will go across the bridge,” he said. “I could lose half my business.”
If Duluth adopts the proposed new ordinance, businesses that purchase precious metal items would be required to wait 31 days before selling or melting down its acquisitions, instead of the 14 days they must now wait.
Blustin said the extended wait time creates more uncertainty for buyers in a volatile market.
“To extend the required holding time to 30 days creates more market risk, and it is going to deny customers the kind of fair-market prices they get today,” he predicted.
But opinions are divided. Jennifer Poulter, manager of the Gold Guys operation in Duluth, took no issue with Duluth’s proposed ordinance changes.
“I think it’s for the good of all,” she said.
Tags: city of duluth, news, police, crime, business
Peter Passi, Duluth News Tribune
