Minnesota Starts to Regulate and Track Gold Coin Dealers

Coininfo reports:

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

 It looks to me as tough this is typical big player industry driven legislation using government to drive out new and smaller competitors.

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.