Rahway's new law for selling gold is called a threat to businesses' survival

Perth Amboy business owners who buy and sell gold for a living are worried that a new city rule requiring them to hang onto gold for 60 days before selling it might put them out of business.

Edwin Feijoo, owner of E&E Jewelry Buyers on New Brunswick Avenue, said he cannot pay his bills because of the hold, which previously was seven days. He said has 37 envelopes filled with items like bracelets, rings and necklaces worth $10,000 that are affected by the new law. For now, the items sit in his safe.

"If it stays 60 days, I'll go out of business," said Feijoo, 27. His family has been in the jewelry business for 10 years. "I have two years left on my lease. I might have to go bankrupt."

Feijoo and other store owners said they were alerted to the new law only after it had already passed, and police came into their stores and asked them to sign paperwork in late September. Business, the vendors said, has picked up in recent years as the economy faltered and more jewelry owners started selling their possessions to pay bills.

"Business should be good," he said. "But I was stopped completely."

The ordinance was adopted by the city council in May, but was fully implemented last month, said Perth Amboy Police Detective Thomas Hudanish. He said the new law would affect nine jewelry stores in the city. Each store, he said, was assigned a detective to discuss the policy.

Hudanish said the new law gives the police more time to recover stolen goods. He said jewelry stores previously were melting down gold as soon as they were legally able to.

"The ordinance enables us to really complete a thorough investigation and go to these places and gives us more of an opportunity to retrieve someone's personal belongings," said Hudanish.

In addition, he said, thieves would hold onto the jewelry for a week before selling it to store owners, knowing police would search stores within the first few days of a robbery.

"We're always trying to stay a step ahead," Hudanish said.

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