Minnesota Law Prevents Buying Gold and Silver

Posted by $ MikeMarotta 6 years, 6 months ago to News
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Sorry Minnesota Customers — Law Effectives Today Deprives Citizens Of Their Choice Of Coin Dealers
Liberty Coin Service’s Monthly Review of Precious Metals and Numismatics
Volume 20 Issue 7 July 1, 2014
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Last year, the Minnesota legislature and the governor worked together to enact a law imposing horrendous regulatory burdens on coin dealers buying and selling “bullion coins” with Minnesota consumers, even if such transactions were conducted face-to-face outside of the state. The pretext for passing this law was an allegedly unacceptable level of deceptive and fraudulent practices by Minnesota coin dealers inflicted on consumers in the state.

As of yesterday, only about 30 Minnesota coin dealers had registered with that state’s Department of Commerce and only one dealer outside of the state had registered.

A survey taken in the past 24 hours by the Industry Council for Tangible Assets, the national coin and precious metals dealers trade association, revealed that about 85% of non-Minnesota dealers were going to cease doing any business with consumers in Minnesota.

Other information revealed that a significant percentage of existing Minnesota coin dealers were going to close their businesses. Many others were changing their operations to no longer handle any coins that have a gold, silver, platinum, or palladium content of 1% or more.

The two Minnesota coin shows scheduled to take place in July have seen table rentals fall sharply. Almost no out-of-state dealers are willing to enter Minnesota to take a booth at a coin show.

Unfortunately, in the name of trying to protect consumers, the politicians in Minnesota have actually deprived the state’s citizens of the opportunity to work with a large number of reputable coin dealers.

For now, Liberty Coin Service, like most non-Minnesota coin dealers, will no longer buy or sell to Minnesota customers, even if they physically come to our store in Michigan.

Registration and compliance would cost thousands of dollars per year and generate oodles of detailed paperwork for each transaction.

We pray that the damage inflicted on Minnesota citizens from the unintended consequences of this law will encourage a quick repeal or a major reduction in the paperwork and financial burden imposed on coin dealers. We hope that it may be possible to resume serving our much appreciated customers in Minnesota before too long.

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  • Posted by DaveM49 6 years, 6 months ago
    Very interesting indeed. No private transaction should have to take place under government supervision (with the implied reserved right to interfere). I happen to live in Minnesota and had no idea this legislation was in place. Will have to write a few letters, perhaps more. Not in the market for any gold at the moment, but those who are should be able to do their thing without any government hassle.
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  • Posted by salta 6 years, 6 months ago
    I'm always incredulous when I hear that FDR confiscated private gold in 1930s, and think it could never happen today. But this is how it will start.
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  • Posted by $ 6 years, 2 months ago
    Another gold seller is embargoing Minnesota. Following a link from the "Rebirth of Reason" website for CERTIFIED GOLD EXCHANGE, I spoke to John Halloran about 1:45 PM today after leaving a Contact message on their website. He called the Minnesota law "communist. " He said that his firm does everything they can to screen out inquiries from Minnesota including people who come in from Google searches.
    Later, I received an email: "No we do not deal with clients that are residence of Minnesota."
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  • Posted by $ 6 years, 5 months ago
    "Preliminary indications are that a high percentage of Minnesota coin dealers, perhaps as much as half of them, are closing their operations. One dealer predicted that the aggressive tactics used to hassle dealers attending coin shows in Minnesota will destroy all but two shows across the state. Since several of the shows that will cease provide financial support to local coin clubs, there is a good chance that several of these clubs will disappear. ... I heard multiple complaints at the ANA (convention in Chicago last week] that Minnesota collectors were turned away from doing business with many dealers, simply because of the state where they live."

    "Dealers close down in Minnesota" -- Posted on August 11, 2014 by Pat Heller. Numismatic News. Online http://www.numismaticnews.net/article/ne...
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  • Posted by $ 6 years, 5 months ago

    Heritage Auctions is offering a rare 1792 Silver-Center cent, technically a pattern coin of the US Mint, in its upcoming September 3-7, 2014, Long Beach Sale. All 26 known specimens have been accounted for, and tallied at auctions. Of those 14 have been "plated" (photographed and published). Walter Breen's _Encyclopedia_ asserted that only 12 were genuine, the others being "dangerous counterfeits" by which Breen might have meant that they were struck later at the Mint from original dies for friends of the Mint management, a common practice of the time.

    These Silver Center "Birch" Cent coins range in condition from Very Fine to Uncirculated and price between $250,000 and an expected One MIllion Dollars for this Uncirculated (PCGS 61) example. This coin weighs about 70 grains and contains about 2.48 grains of silver. It is BULLION by Minnesota law and to be sold, the seller has to inform of the buyer of the precious metal content and the MARKET value of the precious metal content. At today's price of silver ($22 high), that is about 11 cents of silver.

    Realize that this law was passed to protect Minnesotans from "scams" run by "bullion investment" firms. So, if you are from Minnesota, and have a million dollars, do not buy this coin. It might have been one of the two given to President Washington, but it is only "worth" 11 cents, not a million dollars.
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  • Posted by $ 6 years, 6 months ago
    The Classical Numismatic Group is another producer refusing to sell coins with precious metals to people in Minnesota: "We are writing to you with great regret to inform you that Classical Numismatic Group - CNG - will no longer be able to do business with customers in Minnesota, as a result of a change in Minnesota law. For customers whose current address of record is in Minnesota, we will only be able to continue doing business with you if you qualify under one of the exemptions under the law or if you change your address to an address outside Minnesota."
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  • Posted by $ 6 years, 6 months ago
    Producers are boycotting Minnesota. The Industry Council for Tangible Assets (ICTA) reports that of 62 members who reported selling gold and silver bullion, 54 of them will not be selling to anyone in Minnesota. This is a typical message sent to former customers:
    "Minnesota Residents Beware
    Your state statute 2013 80G which became effective July 1st 2014 is prohibitively cumbersome. 
Therefore we will no longer accept any retail orders from Minnesota residents for any items containing gold , silver, platinum or palladium. 
We are sorry but the costs of complying with this regulation far outweigh any benefits.
    Miller's Mint Inc., 200 East Broadway Ave Suite 315, Maryville, TN 37804"


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  • Posted by $ 6 years, 6 months ago
    I found nothing about this on four Objectivist boards - Rebirth of Reason, Objectivism Online, Objectivist Living, and here. Not surprisingly, I did find links on two numismatic boards, CoinTalk (well-known to some hobbyists) and Collectors Universe (supremely huge and known to all). Collectors Universe is publicly traded on NASDAQ as CLCT.

    When the bill was enacted a year ago, the American Numismatic Association and the Industry Council for Tangible Assets united to get it repealed, but failed, of course.

    This is from CoinTalk from last year. The comments are what you would expect: most people angry, but some complacent with one strong advocate. (Most numismatists have pretty good values, but you find idiots in all walks of life.)
    https://www.cointalk.com/threads/minneso...

    This is from Collector's Universe when the bill was enacted
    http://forums.collectors.com/messageview...
    and now a year later
    http://forums.collectors.com/messageview...
    another thread on the same subject
    http://forums.collectors.com/messageview...
    Again, the comments are what you would expect, right out of Atlas Shrugged, with many people upset but powerless and a few totally clueless about what this really means.
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