Buying Gold and Jewelry From the Public in California

Who these rules cover

Business and Professions Code division 8, chapter 9, article 4, covers a secondhand dealer: any person or business whose business includes buying, selling, trading, taking in pawn, accepting on consignment or auctioning secondhand tangible personal property (B&P §21626(a)). A coin dealer, whose principal business is buying, selling and trading coins, monetized bullion or commercial grade ingots, is defined separately (§21626(b)).

What has to be reported is “tangible personal property” (§21627):

• secondhand property that bears a serial number or personalized initials or inscription, or shows evidence of having had one;
• property the Attorney General finds to be a significant class of stolen goods (more than 10 percent of property reported stolen), from a list the Attorney General posts and updates each year.

It does not include coins, monetized bullion, or commercial grade ingots (0.99 fine or finer gold, silver, palladium or platinum, or marked 0.925 sterling art bars and medallions) (§21627(d)).

Unverified We could not find the Attorney General’s current list of significant classes of stolen goods on the Department of Justice website on 20 October 2026, so we cannot say from a primary source whether plain jewelry without a serial number or engraving is on it. Ask your licensing agency how it expects you to report plain gold jewelry.

License

• It is unlawful to do business as a secondhand dealer without a license (§21640).
• Apply to your local chief of police or sheriff (or police commission). The application goes to the Department of Justice, on forms the Department prescribes (§21641(a)). The Department runs a fingerprint-based background check and gives the local agency the license number (CA DOJ Secondhand Dealer and Pawnbroker Unit).
• Renew in the second year after issue and every other year after that (§21642(a)). Display the license where the public can see it, and trade only at the licensed location (§21642(b)).
• Include your license number in any public advertising for the business (§21636.6).

At the counter: buy checklist

• Verify the seller’s identity once per transaction (§21628.3) from one of: a US passport; a driver’s license from any state or Canada; a state ID card; a US government ID card; a foreign passport plus another ID showing an address; or a Matricula Consular plus another ID showing an address. It must be current or issued within 5 years, show a photo or description, and carry a serial or ID number (§21628(e)(1)). Remote verification with cameras or software is allowed.
• Record and keep the seller’s identification for 3 years from the date the item was reported to CAPSS (§21628(e)(1)).
• Record the seller’s certification that they own the property or have the owner’s authority to sell it (§21628(e)(2)).
• Take a legible fingerprint from the seller (§21628(e)(2)). The Department of Justice says CAPSS submissions require the customer’s signature and thumbprint, and lists a fingerprint scanner (with software) and an electronic signature pad as required equipment (CAPSS page).
• Describe the property completely: serial number, personalized inscriptions, identifying marks, owner-applied numbers, size, color, material, the manufacturer’s pattern name if known, and brand and model if known or reasonably ascertainable, plus a plain-text description used in the trade (§21628(a)(1)). A pair of earrings or a set bought together counts as one item (§21628(d)(7)).
• No reportable transactions with a minor (§21643).
• Do not promise a seller that they can buy the item back (§21636.5).

Reporting to CAPSS

• Report electronically to CAPSS (the California Pawn and Secondhand Dealer System, run by the Department of Justice) daily, or no later than the next business day after the purchase, excluding weekends and holidays (§21627.5, §21628(a), §21630(a)).
• In the report, the seller’s ID fields show “on file”; you keep the identity record and give it to law enforcement on request, no later than the next business day, if the item is reported lost or stolen (§21628(e)(3)).
• You do not need to report the same property from the same customer again if you reported it in the preceding 12 months (§21630(b)).
• CAPSS accepts a single XML file with one or more transaction reports, with signature and thumbprint images embedded (75 KB maximum each) (CAPSS page).
• Coin dealers report on an Attorney General form by fax or mail to the police chief or sheriff each day (§21628(d)(6)). Firearms have a separate same-day report and a 30-day hold (§21628.2, §21636); this page does not cover them.

Hold period

• Keep reported property in your possession for 7 days, starting on the date the report was made to CAPSS, and produce it for inspection on request (§21636.1(a)–(b)).
• After 5 days, you may sell before the 7 days end if you record the sale with the buyer’s name, address, and phone number, email or text address. Keep that record for 21 days (§21636.1(d)).
• A peace officer with probable cause can place a 90-day hold by written notice, renewable while an investigation or case needs it (§21647).

Local rules

The legislature intends this article to be uniform statewide (§21625). Cities and counties may not adopt their own identification, holding or reporting requirements for buys of tangible personal property in the ordinary course of business, or any such rules for coins, monetized bullion or commercial grade ingots (§21637, §21638). Other local rules that are not inconsistent still apply, and the Department of Justice notes there may be other local requirements (CA DOJ FAQ).

Penalties

A violation, where the person knew or should have known, is a misdemeanor: up to $1,500 and/or two months in county jail for a first offense, $5,000 and/or four months for a second, and $25,000 and/or six months for a third or later offense (§21645). A license can also be forfeited (§21642(b)).

Texas, Florida and California compared

Federal rules that sit on top

These apply in every state. They are short summaries; follow the links for the full text.

• Buying over $50,000 a year from the public. A jewelry retailer that bought more than $50,000 of covered goods (precious metals, stones, jewels and jewelry that gets half its value from them) from people other than dealers or retailers in the prior year counts as a “dealer” under the Bank Secrecy Act rules (31 CFR §1027.100). A dealer needs a written anti-money laundering program approved by senior management; for a retailer it need only cover those purchases (31 CFR §1027.210). A trade-in credited to the customer’s account, with no money paid out, is not a purchase for this test (§1027.100(b)(3)).
• Cash you receive over $10,000. Form 8300 is for cash a business receives of more than $10,000 in one transaction or in related transactions, filed within 15 days (IRS Form 8300 reference guide). Cash you pay out to a seller is not cash received.

US Buy Register: early access

We’re building a simple register for jewelers and gold buyers who buy from the public: seller ID capture, a hold clock on every item, and a daily report file for your police department or state system. It is meant to run beside the point-of-sale system you already use.

It is not built yet. Join the early-access list and we’ll email you when there is something to try.

Intended price: from $49 per location per month. Nothing is charged now.

Other states

Compare with Texas and Florida, or see all three side by side on the US Buy Register page. Need the offer price itself? Our free gold buying price calculator works out melt value and your offer from weight, karat and spot price.

Sources

Each source was read on 20 October 2026.

• California Business and Professions Code, division 8, chapter 9, article 4 (Tangible Personal Property), §§21625–21647, California Legislative Information.
• California DOJ: Secondhand Dealer and Pawnbroker Unit; CAPSS page; Secondhand Dealer/Pawnbroker FAQs (dated 26 August 2020).
• 31 CFR §1027.100 and §1027.210 (eCFR); IRS Form 8300 reference guide.

Frequently asked questions