Buying back gold and precious objects: your obligations, step by step

Buying gold or jewelry from an individual is not a simple purchase: it's a highly regulated transaction. Written contract, cooling-off period, tax, traceability… Here's what the law specifically requires of you as a professional.

The essentials in 30 seconds

• Written contract required (Article L. 224-96 of the Consumer Code), a copy of which is given to the customer.
• Reserved for private adults, upon presentation of identification; each transaction is recorded in the police logbook.
• The customer has a 48-hour cancellation period (article L. 224-99).
• Payment is made by check or bank transfer, never in cash.

A written contract is mandatory.

Article L. 224-96 et seq. of the Consumer Code mandates this: any gold buyback transaction from a consumer, in any form whatsoever, is subject to written contract, A copy of the contract is given to the seller at the time of signing. The contract precisely describes the goods being purchased: type, weight (in grams), purity (in thousandths) and net price after tax.

The service is reserved for individuals of legal age, acting in a private capacity and on their own behalf.

Things to check before buying

This last point relates to your due diligence obligations: see our guide AML/CFT: New obligations for HBJO professionals.

The police logbook

The professional must record each transaction in a specific register, the police logbook Seller's contact information, property description… This register is accessible to public authorities, and the client retains the right to access and rectify their data (GDPR). For details, see our guide Police register: the obligations of the jeweller-watchmaker.

The cancellation period: 48 hours

In accordance with Article L. 224-99, the customer has a 48-hour deadline You have until the date of signing the contract to withdraw, without giving a reason or incurring a penalty. After this period, the commitment is firm and final.

In the event of cancellation, the customer refunds the price received and you return their items. If you cannot return them (already melted, for example), you pay him an amount equal to double the price. The right of withdrawal is exercised using the detachable form provided in the contract, delivered in person or sent with proof of date and time (Article R. 224-7). If the deadline falls on a Saturday, Sunday, or public holiday, it is extended to the next working day.

Exception: this withdrawal period does not apply to the’investment gold (bar, ingot or plate of more than one gram and of a purity ≥ 995 thousandths; coins ≥ 900 thousandths minted after 1800, having legal tender, whose price does not exceed by more than 80 % the value of the gold contained).

The tax on precious objects

The resale or transfer of precious objects is subject to a flat tax, generally deducted and paid by the professional. Two systems coexist:

How to pay

The settlement of the buyback is made by check or bank transfer Cash payments are prohibited for the purchase of precious metals from a private individual. Specify the payment method directly in the contract.

Inform the client about mediation

As with any sale to a consumer, you must provide the contact details of a consumer mediator (Article L. 612-1). This also applies to your buyback transactions: see our guide Consumer mediator: a mandatory mention in your terms and conditions.

Sources: Articles L. 224-96, L. 224-99 and R. 224-7 of the French Consumer Code; flat-rate tax on precious metals and objects. This article is for informational purposes only and does not replace professional advice or your validated contract template. Rates, thresholds, and terms and conditions are subject to change: check with official sources before any transaction.