Business Owner Expresses Concerns About Out of Town Gold, Jewelry and Coin Buyers Coming Through Our Region

"I’m reaching out as a local business owner in the jewelry and coin industry, and I would prefer to remain anonymous. I’m not looking to promote my business. I’m concerned about a growing number of out-of-town gold, jewelry, and coin buyers coming into Reno and potentially taking advantage of local residents.

The old “hotel gold buyer” model seems to have evolved. These companies now rent neighborhood clubhouses, community spaces, and recognizable local venues such as Bartley Ranch, which can give consumers the impression they are established or affiliated with the local community.

Local dealers are required to maintain business licenses and comply with regulations surrounding the purchase and holding of secondhand property. We have reached out to both city and county officials regarding these traveling buyers, trying to determine what permits and licenses they are operating under and whether they are subject to the same regulations. So far, no one we’ve contacted seems to know exactly how these operations are permitted, who is responsible for overseeing them, or appears willing to enforce the same requirements local dealers are expected to follow.

The bigger concern is what happens to consumers.

One practice we’ve encountered involves advertising or verbally quoting what appears to be a competitive “per gram” price for gold, but then calculating the actual purchase using pennyweights. A pennyweight is 1.555 grams. If a customer believes a quoted number is the price per gram but that number is actually applied per pennyweight, they receive only about 64.3% of what they reasonably believed they were being offered.

Most consumers have no reason to know the difference between grams, pennyweights, and troy ounces. Someone can walk away believing they received the advertised rate without realizing how much less they were actually paid.

There is also an accountability issue. Local businesses have permanent locations, licenses, reputations, and customers can come back if there is a problem. These traveling buyers may operate for only a few days before leaving town, making them extremely difficult to reach afterward.

I’m not suggesting consumers should only sell to local businesses, and I’m not asking you to promote mine. I’d simply like to see some attention brought to this issue so Reno residents know to verify licensing, understand exactly what unit of weight is being used, and calculate their offer before handing over valuable jewelry, coins, or precious metals.

I also think there is a legitimate question for local government: if established Reno businesses are required to follow these licensing and secondhand-dealer regulations, why are traveling buyers apparently able to operate differently—and which agency is actually responsible for enforcing those rules?"