I ordered a clad coin from a shop in Chicago. They sent an email stating they can't sell to anyone in Minnesota, not explaining why. I knew about dealers in MN having to have some sort of license from the state to sell bullion and coins containing precious metals. Never giving it any thought that it would apply to out of state dealers. Sorry, I just wanted to vent a little, had my hopes up. Not sure how this is supposed to protect the consumer? Thanks, Brian
It doesn't. The requirements under the law so burdensome that most dealers and small/individual sellers have and will just decide it is not worth risking dealing with the sales in the state. The only thing is it really going to accomplish is basically monopolize business from the residence for the sellers big enough to be able to comply with the requirements.
5k in any 12 month period. But anything containing more than 1 percent "silver, gold, platinum, or other precious metal" is considered bullion by the law and once you have to register once you have to keep registering it appears. https://www.revisor.mn.gov/bills/te...ssion=ls88&session_year=2013&session_number=0 EDIT: The worst part though is the surety bond. 25k for anyone with sales of 0-200k.
I still say screw the state government there. Let them go after all the sellers who ship there... I doubt they do.
Man, that stinks. Was there an intended benefit of that legislation? It seems like all it would do is chase businesses out of the state.
Some news accounts have suggested that a major bullion dealer used scalawag bullion salesmen has an excuse to run out all of his legitimate competition, courtesy of that state's Legislature.
The intent was to preclude the boiler-room high pressure bullion sellers from scamming any more of their citizens. In keeping with my practice of never ascribing to malice that which can adequately be explained by stupidity, I'm thinking it was a well-intentioned law shoved through by completely clueless lawmakers.
The thing many of you seem to be overlooking is that the coin referenced in the OP is not covered by the law in Minnesota. A clad coin doesn't contain any precious metal, and is thus not considered "bullion" under the silly Minnesota law. There is no reason why a seller could not sell copper, nickel, clad, etc. coins to Minnesota customers. If possible, I would send a note to the seller informing them that the Minnesota law only applies to coins meeting the definition of "bullion" (i.e., containing precious metals).
It was about consumer protection, but it seems a little onerous for dealers, IMO. I think dealers need to keep a log of all the sales/buys they make in precious metals and the prices they asked. Something like that? Some scuzzy types from outside of Minnesota came here and ripped people off, so now we have this legislation.
The law literally has the wording "or other precious metals". Copper and nickel could potentially fall under such a vague definition. Either way I doubt the dealer really cares or is willing to risk any sales to the state
The specific coin in question doesn't matter; if the seller qualifies as a "bullion seller" they have to register.
