Purchase and Sale of Precious Metals - Rhode Island Law Mandates Consignment Shops or Secondhand Dealers or Pawnbrokers to Hold License

Rhode Island Statutes
Title 6. Commercial Law - General Regulatory Provisions
Chapter 6-11.1. Purchase and Sale of Precious Metals

§ 6-11.1-1. License required - "Person" defined

(a)    No person, including a pawnbroker, consignment shop, or salvage yard operator or second hand dealer, as defined in § 5-21-1, shall engage in the business of buying or receiving for the purpose of selling gold, silver, platinum group metals, or precious stones, or any articles containing those items, including catalytic converters other than coins purchased for their numismatic value rather than their metal content, referred to in this chapter as "precious metals," from the general public for the purpose of reselling the precious metals in any condition without first obtaining a license from the attorney general of the state of Rhode Island, also called "the attorney general" in this chapter. The attorney general shall not issue any license to a person who has not registered a permanent place of business within the state for the purchase or sale of precious metals. The criteria for determining a person's permanent place of business shall be formulated by the attorney general immediately on or after July 1, 1981.
(b)    The word "person," when used in this chapter, shall include individuals, partnerships, associations, and corporations.
(c)    This chapter shall not apply to any financial institution which is covered by federal or state deposit insurance, nor to jewelry and silverware manufacturers purchasing precious metals directly from trade suppliers.
(d)    The word "catalytic converter" when used in this chapter shall be defined as an air pollution abatement device that removes pollutants from motor vehicle exhaust, either by oxidizing them into carbon dioxide and water or reducing them to nitrogen.

Cite as R.I. Gen. Laws § 6-11.1-1