Oregon to enforce jewelry scale rules
Published 5:00 am Wednesday, August 4, 2010
With gold prices continuing to hover above $1,100 an ounce, state officials decided to inform consumers who sell their jewelry to look for the sticker that shows the state has certified the buyers’ scales.
But if Deschutes County serves as an indicator, consumers may not find many certification stickers.
Several Bend businesses that offer to buy gold do not have state licenses for their scales, according to a search conducted Tuesday of the Agriculture Department’s licensing records.
Two business owners said they were not aware of the requirement, and the state acknowledges it has not enforced the law.
But it is now.
“This was an area we hadn’t spent a whole lot of time on,” said Jason Butler, administrator of the Agriculture Department’s Measurement Standards Division.
The division licenses or certifies scales that weigh rail cars on railroad tracks — moving or standing still; meters that measure bulk petroleum and vapors; and the truck scales for the Oregon Transportation Department.
Butler, who took over the division in November, said 18 inspectors are responsible for 54,000 devices in the state, so the division had to set priorities, like certifying the state’s fuel pumps, which dispense billions of gallons, truck scales and grocery store scales.
“Up until recently, the small pawnshop jewelry-type scales were at the bottom of the list,” Butler said.
But when the economy crashed and gold prices soared, people began selling their jewelry, and officials wanted to ensure customers got a fair deal.
So they launched a campaign that’s part compliance initiative, part consumer education effort.
In late June, the division started sending letters to business owners advising that their commercially used scales must be certified by the state.
The state first sent letters to Oregon’s 70-plus pawnshops, which are also separately licensed by the Department of Consumer and Business Services.
Butler said letters will soon be sent to Oregon’s nearly 500 jewelry stores.
The letter mentions the law, says the division is assisting businesses with compliance and provides contact information. A Type A license, for scales that measure below 400 pounds, costs $39, according to the Agriculture Department’s website.
None of the businesses listed in a Central Oregon telephone directory under Gold, Silver and Platinum Buyers showed up in the Agriculture Department’s licensing database on Tuesday.
“Quite frankly, it wouldn’t surprise me if there are a couple of pawnshops or gold-buying business that are not licensed,” Butler said.
The owners of two separate Bend businesses that buy gold said Tuesday they knew of no requirement to certify their scales. Both have been in business about 30 years, they said, and they abide by all laws and regulations.
“I wasn’t aware of that,” said Bill Fleming, owner of Bill Fleming Gold and Jewelry in Bend. “That would be news to me.”
Ron Henderson, a co-owner of Saxon’s Fine Jewelers in the Old Mill District, said he knew the store’s scales must meet certain standards, which his scales meet. But he did not know the state had to certify the scales.
Fleming and Henderson both said they will seek the certification and licenses. Once he gets certified, Fleming said it might provide customers with some assurance.
“People (will be able to) see the sticker,” he said, “and know your weights are accurate.”
Both businesses also have seen a large, steady increase in business.
At Saxon’s, Bruce Plummer, another co-owner, said in the past, when an ounce of gold sold in the hundreds of dollars, the store would get a person or two a week. Now it gets a dozen.
Not all customers look to sell, Plummer said. Some trade in old jewelry for new pieces.
Fleming said he’s happy to handle the transactions involving those who sell a handful of jewelry to take a vacation.
But he said those involving a customer selling a grandmother’s ring to pay the electric bill, “those are hard.”
Selling tips
Before selling jewelry or other gold items:
• Know your gold’s karat weight. According to the American Gem Society’s website, jewelry labeled gold, by itself, refers to 24 karat gold. Jewelry less than 24 karat gold should list the karat quality, which refers to the amount of gold it contains, according to the society’s jewelry and diamond buying guide. For example, 14 karat gold contains 14 parts of gold mixed with 10 parts of an alloy metal.
• The metal should be weighed and tested in plain sight. The law requires the scale indicator or readout and the weighing operation all to be in plain view of the consumer.
• Make sure the scale has an approval sticker from the Measurement Standards Division of the Oregon Department of Agriculture.
Sources: The Oregon Department of Agriculture’s Measurement Standards Division and the American Gem Society.