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Legislation Seeks Coin and Precious Metals Dealer Regulations
September 21, 2010 by Silver Coins Today Staff · 2 Comments
A newly introduced House Resolution would add new dealer regulations when selling coins composed of gold, silver and other precious metals.
Proposed by Rep. Anthony Weiner (D-NY) on September 16, 2010, the Coin and Precious Metal Disclosure Act (HR 6149) seeks to "require disclosures to consumers by coin and precious metal bullion dealers."
Congressman Weiner has initiated a campaign against companies he believes are charging too much for coins of gold and silver.
The campaign does include an appearance of political motivation. In addition to the legislation, Weiner, who sits on the House Subcommittee on Commerce, Trade and Consumer Protection, recently announcement hearings on TV gold dealers that will begin this Thursday. The notice on Rep. Weiner’s website about those hearings mentions conservative radio and TV host Glenn Beck no less than three times. Beck promotes, Goldline International of Santa Monica, California, a seller of gold, silver and coins.
"Goldline employs several conservative pundits to act as shills for its’ precious metal business, including Glenn Beck, Mike Huckabee, Laura Ingraham, and Fred Thompson. By drumming up public fears during financially uncertain times, conservative pundits are able to drive a false narrative," a press release by Rep Weiner about the hearings says in part of Goldline, Beck, and other conservative personalities.
For a detailed account of this storyline, read CoinLink’s article: Glenn Beck, Goldline and the “Precious Coins and Bullion Disclosure Act”.
In terms of the Coin and Precious Metal Disclosure Act, if enacted into law it would add several new requirements for dealers of coins or precious metal bullion. Prior to a sale, the consumer must "clearly and conspicuously" be told about:
- Any fees related to the transaction
- The purchase price
- The melt value of a coin
- The reasonable resale value of the coin
The legislation states that these items must be disclosed in writing or orally in the case of telephone communications. Exemptions within the bill include the sale of "rare and collectible coins" in which the value of the coin is not affected by the value of its precious metal composition.
For HR 6149 to become law, it must pass in the Senate, House and get signed by the President of the United States. The bill is currently referred to House Committee on Financial Services. No other House members have cosponsored it, as of this writing.
Obviously Weiner has never actually read the FAQs on the goldline webpage. It’s all spelled out.
Ok first they want to slap our hands with the 1099 cause how dare anyone make a few extra dollars and now they say hey were looking out for you?
Your right Kir. It’s very obvious they never read Goldline’s info or dealt with any dealers. I’m a firm believer in “Learn before you get burned!”. Dealers do this on a regular basis. The thing is the commodities market is not much different than the stock market. Just a few months ago Gold went up $30 one day & dropped $60 the next. So Bullion values are for the moment. A reasonable resell value is a shot in the dark.
One thing I want to point out in my rant here is there’s a difference between numismatic value & bullion value. An ounce of gold or silver is what ever the market says but just because that 1933 Gold Eagle that sold for 7 mill is 1 ounce of gold doesn’t mean it’s worth bullion or will ever be worth bullion.