Purchase of precious metals from private individuals: what are the rules?
Verified 03 May 2019 - Directorate for Legal and Administrative Information (Prime Minister)
The purchase of precious metals from individuals by a professional is subject to certain obligations.
A professional who purchases gold, silver or platinum in any form (jewelry, collector's item, art object or investment gold) from private individuals must indicate the price offered by posting on the public reception area and/or on his website, under penalty of a fine of up to €3,000 (or €15,000 for a legal person).
For each purchase price, the trader must indicate the percentage and amount of tax on the export of precious metals, jewelry, art, collectors' items or antiques.
Any estimate made by the trader must be made before the determination of a total purchase price, proposed to the consumer-seller in the contract.
it is forbidden for professionals to pay in cash a metal transaction, which must be settled by check, payment card or bank transfer.
A written contract is required when a sale is concluded between a professional and an individual under penalty of 2 years' imprisonment and a fine of €150,000..
It shall contain the following information:
- the name and full address of the trader-purchaser or the name and address of the registered office of the legal person;
- number RCS: titleContent for a trader;
- Number in the Business Register (RM) for a craftsman;
- VAT identification number the trader;
- name and full address of the consumer-seller;
- date in the form of DD/MM/YYYY and specifying the time of signature of the contract;
- address of the place where the contract is concluded;
- precise description of the nature and characteristics of the goods covered by the contract (weight, purity of metal expressed in thousandths, etc.);
- selling price, taxes or any costs, if any, borne by the consumer-seller;
- mandatory indication:
The consumer-seller has 48 hours after the signature of the contract to change his mind and withdraw without having to justify reasons or pay penalties.
This withdrawal period shall not apply to investment gold transactions.
The contract must include withdrawal slip..
The detachable form must contain, on one side, the complete address of the professional-purchaser to whom it must be delivered or addressed.
To exercise the right of withdrawal, the seller must not later than 48 hours from the day and time of signature of the contract either:
- hand over the detachable form to the trader;
- send this form to the trader by means of a means of attesting to the date and time of the sending.
If the 48-hour period expires on a Saturday, Sunday or a holiday or non-working day, it shall be extended to the next working day at the same time.
The sending or delivery of the form to the professional, within the given time limit has the effect of canceling the purchase. Otherwise, the contract is final.
Any clause in the contract by which the consumer-seller relinquishes his right of withdrawal shall be deemed null and void.
performance of the parties' contractual obligations shall be suspended until the expiry of the 48-hour withdrawal period. Consequently, the consumer-seller must not hand over to the professional-buyer the item he wishes to sell before the expiry of this period and the professional-buyer must not pay him the price of the purchase provided for in the contract before 48 hours.
- Monetary and financial code: Articles L112-6 to L112-8Prohibition of payment in cash
- Consumer Code: Articles L224-96 to L224-99Obligation to display prices and contract
- Consumer Code: Articles L242-34 to L242-38Civil and criminal sanctions
- Consumer Code: Articles R224-4 to R224-7Right of withdrawal
- Order of 18 August 2015 on consumer information on the purchase prices of precious metals
- Withdrawal for a contract to purchase precious metals
- Sell your precious metalsNational Institute of Consumer Affairs (INC)