By AVA TURNQUEST
Tribune Staff Reporter
aturnquest@tribunemedia.net
CASH for Gold operators yesterday criticised the government over recent threats to ban trade without any consultation with an industry they claim has kept the country afloat during hard economic times.
Operators charged that the government’s attempt to delegitimise businesses was short-sighted and discriminating in its exclusion of traditional jewellery and jewellery repair shops, all of which engage in the sale of second hand jewellery.
In an interview with The Tribune yesterday, David Lunn and Chris Lowe, proprietors of United Gold and Silver Ltd, condemned remarks made by National Security Minister Bernard Nottage, and state minister Keith Bell, whom they feel have condemned the industry as a scapegoat in a bid to provide a political “quick fix” to crime.
Cheldin Brown, operator of Bahamas Gold Trading, added that any illegal activity was a question of morality and not symptomatic of the entire industry.
Mr Brown said: “On several occasions I have helped the police retrieve back stolen jewellery. On one occasion, the police came to me and said a chain was snatched (in the area) and gave a description of the person. Me and the police sat down and waited, and the culprit came right there and the police got him.”
The operators said recent statements by the government have had a direct impact on sales, and added to the negative stigma attached to tax-paying businesses and a long-standing global trade.
They urged the government to start a dialogue with the industry despite its adversarial stance.
One industry veteran, who wished to remain anonymous, said: “The larger picture is that over 100,000 people have been helped over the past three years, I don’t know what percentage of those people have brought in stolen jewellery – I believe it’s less than 2 per cent. If you’re gonna condemn a business for the 2 per cent that have done something wrong.
“We have a bad economy, the world economy has destroyed a lot of nations and this country has suffered greatly since 2008.”
In his address to the House of Assembly, Dr Nottage called for the closure of the country’s cash for gold stores, as well as a ban on copper exports, in view of statistics showing that more than half of all armed robberies involve jewellery or copper.
Yesterday, operators lamented that their industry has been lumped together with the controversial copper trade, which has been banned in the past.
“We recognize there is a problem, we’re not saying there isn’t a problem,” said Mr Lunn. “But the point is, each of us who legitimately and morally run our business could be a mini-police station – they haven’t even attempted to explore that.”
“We’ve reached out to police to say we’re your ally not your adversary,” he said. “The police have never reached back to us, not even an acknowledgement on the receipt of our letter.”
Mr Brown said he has attempted to get a meeting with the Police Commissioner for the past two years.
In his Senate address earlier this week, Mr Bell accused some cash for gold operators of melting down stolen gold jewellery within an hour of receiving it, to prevent being prosecuted and arrested. He added that some operators contribute to the theft problem by failing to report the matter to police. Mr Bell said that the cash received from the sale was “far below the actual value of the jewellery.”
Yesterday, operators questioned why businesses engaged in criminal practices have not been shut down if they are known to police.
Operators maintained that businesses operating in full compliance with regulations actually deter criminals, and also expedite police investigations.
They argued that gold was purchased at market value, and also noted that valuation was different in comparison to cost price at a jewellery store – which also factors in overhead expenses.
Mr Lunn said: “The point is you make the operation procedures and the penalties so stiff that if you break those procedures it ain’t worth it. Now bad guys will be bad guys they will do whatever they have to do.”
Added Mr Brown: “This is the only country in the world where I’ve heard that the government say they’re going to stop Cash for Gold.”
The Pawnbrokers and Second-Hand Dealers Act 2011 imposes upon a business owner or dealers the duty and responsibility to verify the identity of customers, maintain records and keep certain items in an unaltered state for specified periods.
The Bill also empowers a police officer, acting on reasonable suspicion, to enter a dealer’s premises and request the production of all articles in possession of that dealer for inspection, and request the production of copies of records required to be kept by the dealer.
Yesterday, operators said that police procedure when handling suspected goods should also be under scrutiny.
Comments
ThisIsOurs 10 years, 10 months ago
Did we grow up too quickly? We are now 40yrs old and spoiled. We were spared the rod in our youth, indulged many times over and showered with expensive toys laced with white powder. Now everybody bristles at the imposition of some oversight.
Nobody can argue the huge jump in jewelry theft since this particular industry blossomed. But we have the same argument here as in the graduation cancellation incidents, you can't punish the innocent for the actions of the guilty. It's actually a nice argument. We use it all the time in legal proceedings...innocent until.... Is Mr Brown guilty? Maybe not. The real problem is lack of oversight, under which anything and everything spirals out of control. I call it by its true name TODAY, Perry Christie. It can be no other if we are to FIX this country.
We need King Solomon in the mix to act with integrity and to ponder complex situations and make WISE decisions. We need him to work and to govern the land evenly and fairly. It cannot be that his friends are allowed to steal billions from the public treasury while 20yr old boys are raked over the coals for 200 dollar gold chains.
Lead King Solomon, Lead righteously.
TalRussell 10 years, 10 months ago
Oh what a tangled web they weave, When first we had listen them numbers "bosses" paid politically connected consultants and they preacherman's telling us all about how they had rescued Bahamaland's economy. And, now thanks be to god, that the gold buyers are now here to buy we gold teeth.
Dying to see who will be the first preacherman spokesman for the gold teeth buyers?
by TalRussell
really 10 years, 10 months ago
yea yea yea yal just as bad as the robbers because yal didnt follow proper protocol to ensure you were not facilitating those activities....the stories were everywhere you knew but u chose to ignore and be greedy i wish they could give cash for gold operators jail time!!! they deserve it! thanks to yal ya cant wear jewelry nowhere....yal judgement soon come
positiveinput 10 years, 10 months ago
Do you think if no traffic police were visible on the roads motorist all would abide by the traffic rules that are written down in books? Hell no, so why think if you just leave an industry to run itself, every thing will be done by the books. Stop trying to fine the easy way out cause take it from me, to shut down this industry, it would only go underground creating a real problem. Merchants whom knowingly purchase stolen goods would go down on their cash payouts making criminals obtaining valuables increase their actions to keep their pockets comfortable. The best solution to this problem is to oversee the actions of this industry when it comes to obtaining used goods. To do this the government will create new jobs, and obtain more profit from the taxing fees.
Reader 10 years, 10 months ago
The gold market itself may determine how long the cash for gold businesses remain... the gold bubble has burst with gold down to $1,295.00 today and the most current reports indicate that it will go lower.
I remember sometime last year getting a quote from one of the local companies when gold was around $1,700.00 an ounce of $10.00 per gram for 14K Scrap.
Most major US refiners are paying dealers 98% on spot gold with little or no refining charges. Thus at $1,700.00 an ounce gold that works out to be approx. $31.00 per gram for 14K scrap.
Anyone who takes their gold to these places to sell have to be really hard up as they are not being offered a fair price, not even close.
Currently at $1,295.00 per ounce dealers can net approx. $23.00 per gram for 14K scrap. What price are these business's offering today at current market?
In a small market like we have in Nassau just how much gold can people legitimately have to pawn... at some point the amount of metal available by the average joe has to decline and with the market falling, some of these businesses will have to close.
crawfish 10 years, 10 months ago
((Mr Brown said: “On several occasions I have helped the police retrieve back stolen jewellery. On one occasion, the police came to me and said a chain was snatched (in the area) and gave a description of the person. Me and the police sat down and waited, and the culprit came right there and the police got him.”))
Well, right here, Mr. Brown makes an excellent case as to why such a business should be shut down. The thief steals the gold chain, and 'bingo' he brings it directly to Mr. Brown's business. Without the opportunity of selling the chain to Mr. Brown, the thief would have no incentive to steal it in the first place.
positiveinput 10 years, 10 months ago
If you weren't thinking backwards like a crawfish move then looking forward you would have seen the solution is rite in front of you. With the presence of the authorities, that criminal was caught. So regulate the industry in that the barter of these goods are overseen properly. However if you shut down this ijdustry, the exchange would go totally underground, then who would the authorities go to when merchants could then say well you know I was shut down so I dont even bother with that no more. Think wisely Bahamians.
TalRussell 10 years, 10 months ago
Consumers should have options for selling gold to jewelry and pawn shops or gold buying services. The more outlets the better for consumers. If you hold a business license where liquor is served, you are required to keep records and to abide by all the rules, including the police checking that you are operating fully under the conditions of your licensing. If you decide not to perform in the lawful interests of the consumer, your license should be permanently revoked.
The government needs be more concerned with the interest rates the major banks are charging consumers for auto loans and mortgages. that is if they'll even lend you a red penny?
USAhelp 10 years, 10 months ago
Don't worry be happy nothing will change number houses continue. Gold houses will continue. If you pay you have a pass.
John 10 years, 10 months ago
Figure this: You had vintage jewelry, in mint condition. rings and chains and pendants that you hardly ever wore, in fact some of the items were never worn. Someone breaks into your home and steals everything. The police catches them a few days later and they confess to breaking in. The thieves tell the police that they traded the stolen jewelry at a certain cash for gold store. When the police go to the store the claim that 'yes they traded the stuff, but everything has been melted down. Do you really believe they melted down almost brand new jewelry with diamonds and emeralds and other stones in it? To get a fraction of the value. Did you not think they would be suspicious of a person trading these items as scrap gold? Yes the Cash for Gold stores are facilitators of crime. They should be shut down..all of them. If a thief steals jewelry and tries to sell it on the street the chances are greater that he will be caught than when he could take it to a partner in crime. Trust me, they know the value of the things they trade and they will not melt down very valuable jewelry. They ship it out to be sold in other markets..Shut them down!
positiveinput 10 years, 10 months ago
Then after they have been shut down what happens next. Stop giving the authorities the easy way out that would only result in the unemployment rate going up. Oversee this industry properly and receive the benefits of it. Look at as simple as the Custom Officers. Ever notice that after you have filled out the proper papers, an Officer still inspects (search through) your goods. Anything not inspected never achieves what is expected. Just because something goes wrong, to shut down a whole industry is not the solution. We all know the problem is in no way the merchants are being monitored, so a simple fix would be to monitor them.
John 10 years, 10 months ago
Just look around you. Since the Cash for gold Operators came into existence hardly anyone has gold jewelery anymore..all has been stolen and those who had gold left sold it off because they were afraid of getting robbed..the days have come where men (and women are taking their gold and tossing it in the streets as the bible has prophesied they would do!
concernedcitizen 10 years, 10 months ago
the bible also endorsed slavery and told slaves to obey their masters ,do you also believe in that ,,the book is a period piece written at that time about the jews strugglles w/ the romans ,,east and west then was as far as people could walk ,,the bible was also into multiple wifes ,do you also support that
Sign in to comment
Or login with:
OpenID