Denver Diamond Buyer - Licensing and Registration

The state of Colorado and Denver regulate the transactions of jewelry on the secondary market. These measures ensure private property that is sold will be recoverable if it is reported stolen. Other municipalities in the Front Range probably have similar measures as Denver. Some of the regulations are statewide meaning every buyer in Colorado follows them. Property stolen should be returned to the rightful owner. Systems for licensing and registration allow that return to happen.

These measures mean that every piece of jewelry I buy will be recorded. I do most of the work; however, it does keep sellers honest. The picture related to this blog shows the form. As you can see, the form is quick to complete and is not that personal. It also has no tax implications so do not worry about it being forwarded to the IRS.

I would also like to add that Denver has streamlined the process. Obtaining the license followed a logical sequence – from zoning checks, to background checks, and finally a detective inspection. The process made sense but was not too onerous as to lock out new companies. Furthermore, sellers can feel comfortable in my office as a detective from the Denver Police Department has inspected and certified it. Wherever you sell, check to make sure that company is licensed.

Here is how it works. First, as consumers, you need to provide enough personal information that may make spurious sellers uncomfortable. In my office, I ask for a copy of your driver’s license and photocopy it. I check the photo and signature to make sure they match. You, as a seller, will also complete a form stating that you do indeed own the jewelry you are selling and for how long you have owned it. I will add the specific details about the jewelry including any unique identifiers. That forms is submitted to the Denver Police Department within 7 days. Legally, I am required to hold the merchandise for 30 days while the form is entered into a database and compared with stolen propriety reports. Additionally, I complete another log of every item I have purchased that stays in my office. The system is a bit dated. I cannot submit the information online, which would save both time and money. I am not notified in advance of potential stolen property that I should avoid buying or notify authorities. However, the system seems to work and come from a good place.

A quick concluding note on selling: You must be at least 18 years old to sell and have a valid driver’s license.