Village Takes a Closer Look at Cash for Gold Shops

Times are tough and one could say that a sign of these times is the growing instances of cash for gold stores in Lindenhurst.

For one Aussie Flowers on Sunrise Highway and Straight Path left and a cash for gold shop moved into its place. More examples could be found a little further down on Sunrise Highway at the northern border of the Village.

One might also say that these businesses are filling a legitimate need and are filling empty storefronts that have also popped up given the tough economy.

However, the growing instances of these shops - which seem to be more akin to pawn shops than jewelry shops since they advertise that they buy and sell gold - caused the Village to take a closer look at them and as a whole.

Second Look
Last the Village was considering tweaking some of its codes and fees for businesses that fall into the pawn shop category, such as cash for gold shops.

Since then the has been looking at its options and at what other municipalities are doing, but no resolution has been brought forth - yet.

"We took it off the agenda, but we want to look at it again, rework it," Mayor Tom Brennan told Lindenhurst Patch at the most recent Village Board on . (For other issues discussed at the meeting, click .)

Brennan sees nothing wrong with a straight cash for gold business or an already existing jewelry shop taking on a cash for gold component.

"Could I see jewelry stores doing cash for gold? Sure. But they're jewelry shops. That's their business already," Brennan said.

However, he said there's a concern over the sometimes illegal activity a pawn shop or its cousin, cash for gold shop, could attract into the Village.

"If it's a legal shop, and they're doing things the right way, then I have no problem with them," Brennan said.

But the Village doesn't want to make it easy for someone who might be involved in in the community to turn around be able to sell something down the street.

Brennan pointed out there were several robberies in the Linwood section of Lindy - New York Avenue in the numbered streets up to Sunrise Highway - in recent months.

Now, he said, has made some arrests in those cases, but that's the type of illegal activity that could continue to grow if it gets easier to sell stolen items right here in the Village.

"If someone wants to sell something and it's theirs, then that's one thing. The key words are, 'it's theirs.' We don't want people to go in, take something not their own and be able to sell it easily," Brennan said.

"That's one of our dilemmas. We want to see what we can do," the mayor continued, adding that he doesn't want to limit either. "But we don't want signs going up in barber shops."

According to Brennan, there've been several instances in the Village where barber shops have put up signs saying, "Cash for gold" or "We buy gold."

He's not sure why it's happening, nor why it seems to be that a few barber shops have done that, but he pointed out several places where this has happened.

"There was one near Delaware Avenue and Montauk Highway. And I believe there was one that used to be near South Eighth Street and Montauk," Brennan said.

And he doesn't want that to continue. "It makes you wonder why a barber shop would do that," he said.

The Next Step
Brennan said the Village would be working closely with Gerard Glass, Village attorney, in that respect.

The Village, he said, has also put in calls to Ron Kluesener, chief of staff, to see what it's done to tweak business fees and guidelines with regard to pawn shops.

"I believe the Town has an ordinance, and I believe it also has a hefty application fee. But I'm not sure. That's why we want to talk with them," Brennan said.

According to officials, the Town does require pawn shops to carry a higher insurance premiums due to the possible safety and security risk they might represent with a lot of expensive merchandise and cash.

That risk is another concern for the Village; hence the board's methodical approach to looking at the Village's own codes and fees with regard to pawn shops and their cash for gold cousins.

"If we're going to do it, then we want to do it the right way," Brennan said. "We also want to avoid their pitfalls."

Editor's Note: Lindenhurst Patch will continue to look at the business trend of cash for gold shops in Lindy in the coming weeks.

We'll talk to the , , the Business Improvement District (), the shops themselves, their business neighbors, the Town, the and other business experts about their long-term viability. Check back next week for the in the series.

Be sure to share your thoughts about this business trend in the comments below, on Facebook and Twitter, and or by e-mailing barbara.loehr@patch.com.