MINISTER FOR Justice Dermot Ahern has asked gardaí to investigate whether some businesses buying gold jewellery for cash are being run by organised crime gangs.
Mr Ahern has also asked Garda Commissioner Martin Callinan to report on whether the increase in cash-for-gold retail businesses has contributed to a spike in burglaries.
The move follows concerns that the exponential growth in cash for gold outlets, where gold is sold over the counter by people walking in off the streets, has made it easier for thieves to sell stolen property.
Mr Ahern said it was clear there had been a “significant increase” in the number of cash-for-gold outlets across a large number of Irish towns and cities.
“Many kiosks are also situated in hotels or shopping centres operated by individuals that are employed by a number of companies buying gold for cash,” he said.
“I am aware that the trade gives rise to concerns reported in communities about crime that may be linked to the cash for gold trade.”
The Minister has asked the commissioner to examine whether existing legislation needs to be reformed to address any criminality linked to the sector.
Senior gardaí have expressed concern that the ease with which criminals can now sell gold jewellery and other items for high prices to legitimate businesses may be feeding the increase in burglaries taking place across the Republic.
“If you have lots of places where you can walk in off the street and get a good deal selling gold jewellery, then you’d have to think that would be an incentive to break into houses” to steal jewellery, said one Garda source.
Other Garda sources said while many outlets recorded the passport or driving licence number of those selling the gold for traceability purposes, some cash-for-gold businesses might not be as compliant as others.
While the informal sale or purchase of jewellery is not specifically regulated here, anybody who buys or sells items that they know to be stolen could be prosecuted, and on conviction would face up to 10 years in prison.
However, Mr Ahern has become concerned at the exponential growth in the cash-for-gold sector and is now seeking a report from the Garda on a number of issues.
He has asked for a Garda report that would examine whether, and to what extent, burglaries and other criminality was fuelling growth in the sector.
Mr Ahern also wants an analysis of whether high burglary rates in specific areas may be linked to large numbers of cash-for-gold businesses operating in those areas.
The Garda report will also examine whether organised crime gangs have begun operating cash-for-gold businesses as fronts for handling stolen property, and whether existing burglary-related legislation is adequate in policing criminality that may be associated with some cash-for-gold businesses.
The Garda report is expected to be ready within weeks, and any legislative changes or other recommendations will be considered by the Government.
