PEABODY — Cash for Gold was down a little cash last Thursday after the City Council voted to fine the business $300 for violating a city ordinance.
Cash for Gold, which operates from pushcarts in the Northshore Mall, was found on two occasions in February to have cut completely through a ring, a method the business used to test the quality and authenticity of gold.
This practice violated Peabody's ordinance because no one who deals in the purchase, sale or barter of old gold or silver is allowed to "change the form or identity" of an article until at least 30 days from the date of purchase or receipt. An article also has to be kept in the city for at least 30 days.
The law, City Solicitor John Christopher explained to councilors at Thursday's hearing, was designed to prevent damage being done to stolen property.
On Feb. 1, for example, a Peabody detective investigating a breaking and entering determined that the suspect had pawned a woman's ring at Cash for Gold the previous day. When the detective investigated, he learned that the ring had been taken to Boston and cut.
Police found two instances of jewelry being cut and discovered Cash for Gold had also lapsed in its record keeping.
Christopher said Cash for Gold was adhering to a state regulation, which was more lenient in what it permitted for testing than Peabody. The business, however, has agreed going forward to use a method that doesn't involve cutting and keeps the gold intact.
The fine was the penalty for a first offense. Councilors approved it by a 10-1 vote.
Councilor Jim Liacos objected, arguing that the fine was too severe and that a warning would have been more appropriate.
The business owner, who was at the hearing, agreed to the fine through her attorney, Jack Keilty.
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