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On behalf of the California Coin and Bullion Merchants' Association (CCBMA), attached are annotated documents highlighted to provide a path that traces historic links establishing precious metal dealers as essential services in the context of Governor Newsom's Executive Order N-33-20.
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In order, the documents are:
1. The Governor's Order N-33-20
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2. The Department of Public Health's inventory of critical infrastructure workers (pg12)
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3. The US Treasury Dept press release announcing guidance to the USA Patriot Act and specifically naming dealers in precious metals as covered under this landmark legislation (paragraph 2)
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4. The Dept of Treasury Financial Crimes Enforcement Network (FinCEN) FAQ addressing its interim final rule implementing Sect. 352 of the Patriot Act (final paragraph of item 1).
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5. The Dept of Homeland Security Cyber Infrastructure (CISA) defining the Financial Services Sector to include "providers of investment products" and financial institutions "provide liquidity to customers and invest funds" (Sector Overview). Rules metal dealers must follow.
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6. Federal Register FinCEN abstract (annotated page 5)
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Our members have been improperly singled out for closure because local authorities do not understand that precious metal dealers are included in the Federal and State definitions of financial institutions - just the same as banks, savings and loans and credit unions.
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We request the Governor instruct his office to provide precious metal dealers with a letter or other documentation which can help local authorities understand their services may remain open and available during the Covid-19 crisis.
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During the current crisis, without access to our members who are dealers in precious metals, many citizens who hold gold or other precious metals as a safety net have no liquidity. They are prevented access to a means to fairly trade their asset into cash. These citizens must be afforded the opportunity to exchange those precious metals for cash they may need - a transaction that conventional banks, savings and loans and credit unions are not equipped to provide
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In a broader context, since precious metals are traded as commodities in the securities marketplace, some consideration should be given also to the larger impact on commodity exchanges in general.
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