What Is a Precious Metal and Gem Dealer Bond?
Some states and a number of counties require precious metal and gem dealers to obtain surety bonds before they are allowed to operate on the respective territories. This is a license bond that is usually a part of the licensing requirements set by local and state authorities.
The purpose of the surety bond is to ensure that you follow the law. If you transgress from your legal obligations as a precious metal and gem dealer, you can face a bond claim. Through it, harmed parties can demand a fair compensation for damages they have suffered as a result of your illegal actions.
Your dealer bond is a three-party contract. The principal of the bond is your business. The relevant local or state authority is the obligee requiring the bond. The surety is the bond provider.
Questions about Precious Metal And Gem Dealer Bond
Which states require this surety bond?
In Virginia, dealers of precious metals and gems have to obtain a $10,000 surety bond. The requirement is set in Title 54.1, Chapter 41 of the Code of Virginia.
Oklahoma precious metal and gem dealers are required to post a $10,000 surety bond. According to the Department of Consumer Credit, the state Department of Consumer Credit is the licensing body that imposes the criterion.
Suffolk County, New York
You need to post a $5,000 surety bond to become a precious metal and gem dealer in Suffolk County, New York.
How much does it cost to get bonded?
Your surety bond cost is different from the required bond amount. It is a small fraction of it, which is referred to as the bond premium. It is formulated after considering your personal and business financials to assess your profile’s strength. If you present a strong application, you can expect bond rates between 1% and 5% of the required amount.
The most significant factors that shape your premium are your personal credit score, business financials, and assets and liquidity. Your professional experience may also play a role to prove your stability. If you are deemed a low-risk applicant, you are likely to pay a smaller price for your bonding.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Suffolk County, New York||$5,000||$100||$100-$125||$125-$250||$250-$500|
|Virginia and Oklahoma||$10,000||$100-$150||$100-$250||$250-$500||$500-$1,000|
Can I obtain this dealer bond with problematic finances?
It is possible to get a precious metal and gem dealer bond with bad credit. We run our Bad Credit Surety Bonds program to provide a bonding option for applicants with low credit scores, tax liens, bankruptcies, and civil judgements.
As the bonding risk is higher, you can expect premiums in the range of 5% and 10%. Still, we can offer you a top bonding rate whatever you credit score is. This is possible because of our close collaboration with numerous A-rated, T-listed surety companies. It allows us to shop around for you and choose the best matching option for your particular case.
How do I obtain a precious metal and gem dealer bond?
Do you want to learn more details about the way bonding works? We’ve prepared an in-depth How to Get Bonded page that you can consult.
Have more questions, or need help? Just contact us at (877) 514-5146. Our surety bond experts will happily assist you.