Minnesota has passed legislation that would regulate bullion coin dealers. But it has coin dealers and coin club officials scratching their heads over just what it means and how to comply. Implementation of the bill will have the effect of licensing bullion coin dealers in the state.
Bullion coin dealers will be subjected to registration as of July 1, 2014, with the state commissioner of commerce at a fee of $25 for a bullion coin dealer and $10 for his representatives.
The legislation defines “bullion coin” as any coin that contains “more than one percent by weight of silver, gold, platinum, or other precious metals.” A bullion coin dealer is one who buys and sells bullion coins. By that definition virtually all dealers are bullion coin dealers
Consider: The largest coin dealer in the Minnesota is in favor of the regulation. The Star-Tribune reports:
“We had some rotten apples in the business,” said Jim Cook, owner of Investment Rarities Inc. in Bloomington, who is considered the grandfather of coin telemarketing in Minnesota. “The big thing is keeping the felons out of the business."Cook cites some fraud that went on in Minnesota, but as Gary Adkins, a Minnesota coin dealer sasy in the above clip, those that committed fraud are now in jail. Fraud laws take care of fraud. Government tracking and regulation does nothing but harass and make survival difficult for all but the biggest dealers.
This is a perfect example of how crony capitalism uses government to prevent the growth of existing smaller competitors and prevent others from entering the sector.
(ht Felix Bronstein)
My experience is that maybe 1 out of 500 statists understands the possibility that "regulation" impairs smaller businesses and that 1 out of 400 statists understands that crony capitalism is not the same thing as laissez faire. Thus, the historical fact that the "robber barons" gained their positions by using the government will be perpetually lost on them.
ReplyDeleteTHe Teachers Unions Run St. Paul. None of them even know anybody that has ever bought bullion let alone been ripped off trying to do it.
ReplyDeleteThey raised the tax on smokes a buck 60 now too.
DUMB DUMB Dumb
Bootleg Camel lights from NODAK to MN for me anyone?
Simple solution: Buy no more gold in Minnesota until the law is repealed. Watch this dealer go bust.
ReplyDeleteNew or more "Regulation" also requires more administration, a bigger budget, more staff. In the end, the regulators and crony rent seekers benefit the most. Consumers either face limited choices and higher prices for services or both.
ReplyDeleteWhat stinks about this law is that it will also shut out the good and faithful customers of some of the smaller dealers/brokers who feel the law is too difficult to comply with. I just found out from my favorite small jewelry shop that they will be unable to sell to the public after July 1, as they can only sell now to dealers. This shuts me out as a voluntary consumer of the product who has done my homework and research. Again, if it breathes or moves in Minnesota, the DFL will regulate it. Perhaps I should call my state rep in the morning to seek his approval on what I should have for breakfast or what color socks to wear! Government came through again!
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