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Minnesota’s New Gold Coin Dealer Law

Minnesota has become the first state in the country to require registration of bullion coin dealers and salesmen.  Is this effective consumer protection or is it an overextension of governmental authority?  Does a rotten apple, once removed from the bunch, still spoil the bunch?

Background

Minnesota has had several cases in which the Department of Commerce and the Attorney General have prosecuted and convicted gold coin dealers of fraudulent activities and similar violations.  Last year, Minnesota passed a law (S.F. 382 creating Chapter 80G of the Minnesota Statutes) requiring the registration of all bullion coin dealers who have done business with Minnesota-based investors in the last year.

A criminal background check is required of the bullion coin dealer (the company), its officers and owners, and all sales representatives.  Disclosure of ANY criminal conviction within the prior 10 years for all parties associated with the dealer must be made to the state.  The state must deny registration and doing business to any entity or associated individual who has been convicted of a financial crime or a crime of fraud or theft.  Additionally, the bullion coin dealer must post a surety bond to cover any future consumer complaints.  And, the dealer must provide a written notice of the specifics of a prospective transaction to the consumer before completing the deal.

Our Opinion

This seems to be a classic example of a few bad apples spoiling the whole bunch.  Undoubtedly, there have been egregious cases of fraud and theft in the bullion coin markets.  This knee-jerk reaction by the State of Minnesota has had the effect of keeping many reputable, national dealers from conducting business in Minnesota.  The amount of red tape associated with an occasional Minnesota transaction is simply not worth it for the vast majority of U.S. bullion coin dealers.

At GoldCoin.net, we put customer satisfaction and integrity first and foremost.  Having been in the bullion coin business for over two decades, we have earned our reputation as “America’s Gold Coin Superstore” by helping thousands of clients set a course for personal financial independence and peace of mind.  We have a Better Business Bureau rating of A+ with zero complaints.  We only use knowledgeable and highly-qualified representatives who earn their keep based on their customer satisfaction scores instead of commissions.  GoldCoin.net utilizes industry “best practices” to ensure that our clients are fully informed about any prospective transaction.

Consequently, it seems that a few bad apples have spoiled the bunch, at least for now. Minnesota has decided to intervene in the free market process and impose registration upon all on account of a few.  This sort of governmental involvement is one of the reasons that many Americans are considering an investment in precious metals.

Summary

The Minnesota law regulating bullion coin dealers seems well-intended but has created a situation in which many reputable, national bullion coin dealers could forsake the Minnesota market.  Limited options and excessive regulation may create a situation in which Minnesota investors have to pay more than the fair price for their precious metals.  Regardless of the state in which you reside, we encourage you to be an astute and knowledgeable investor.  Whenever there is money involved, there is the opportunity for fraudsters and con men.  We encourage you to do your own research about bullion coin dealers using tools such as the Better Business Bureau and website sites such as RipoffReport.com.  Also use personal references.  At the end of the day you will find that the GoldCoin.net is at the top of the list of reputable gold coin dealers.  That is why we are known as “America’s Gold Coin Superstore”.  Call us at (800) 425-5672 to learn more or to request any of our free informational guides.

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