NATIONAL CITY, Calif. -- National City has adopted a 10-month moratorium on new pawn shops, secondhand stores and precious metal dealers in the city after concerns about legal problems and crime. City leaders want to slow the increased interest in gold sales and purchases within city limits. As of Wednesday afternoon, gold was valued at $1,817 an ounce.
"It has just skyrocketed on the number of businesses opening up," said National City Mayor Ron Morrison. "I mean, people out of their beauty salon or whatever else buying gold… it just becomes this huge deal."
The "huge deal" came to light during Tuesday night's city council meeting where the moratorium was approved.
City leaders said they are worried about potential legal problems from the "cash for gold" operations.
The state of California requires items sold to pawn shops be held for 30 days before they are sold. That gives authorities time to verify the items were not stolen.
However, some gold operations will buy gold in the morning, melt it down immediately and sell it the same afternoon. That process erases any evidence to indicate if the gold was stolen.
Express Pawn Shop in National City has bought and sold gold for 30 years. One of the shop's owners told 10News that some of the people buying gold in National City may not have been on the "up and up."
"Gasoline stations are buying gold now. Everybody and their mother has become a gold buyer," said Israel Adato of the Express Pawn Shop. "I really doubt if they're reporting any income tax or state tax on these things."
The other problem city leaders were concerned about is crime. National City police are worried thieves would target stores and homes to get their hands on the precious metal.
During the moratorium, National City will develop guidelines for the purchase and sale of gold.
"[It is] to make sure that the public is getting the service that they need but also the protection that they need, too," said Morrison.
Poster Comment:
"Just a bubble..."
LOL.
