Selling gold in Texas involves more than just exchanging your items for cash. State laws and prudent business practices require specific documentation to protect both buyers and sellers. At Dallas Cash for Gold, we believe in fully educating our customers about the entire selling process, including the necessary paperwork.

Understanding documentation requirements helps ensure a smooth, legal transaction while protecting your interests as a seller. This guide explains what paperwork to expect, what to bring with you, and why these documents matter when selling gold in the Dallas-Fort Worth area.

Texas Legal Requirements for Gold Transactions

Texas has some of the nation’s most comprehensive precious metals regulations, designed to prevent trafficking in stolen goods while providing transaction records for law enforcement, tax purposes, and consumer protection.

Required Identification

Under Texas law, all precious metals buyers must verify and record the identity of sellers through:

Government-Issued Photo ID: Acceptable forms include:

Texas driver’s license
Texas state identification card
U.S. passport
Military ID
Other valid government-issued photo identification

The ID must be current (not expired) and show your photograph and current address. If your ID doesn’t show your current address, you may need to provide supplementary documentation like a recent utility bill.

Record Keeping: Texas law requires gold buyers to record:

Your full name as it appears on your ID
Your current address
Your date of birth
Your identification number from your ID
The date of the transaction

This information becomes part of the buyer’s transaction records, which must be maintained for a specified period and may be subject to inspection by law enforcement.

According to the Texas Department of Public Safety, these identification requirements apply to all precious metals transactions, regardless of value. There are no minimum transaction amounts exempt from these requirements.

Transaction Documentation

Beyond identification, Texas law mandates specific transaction records:

Item Description: A detailed description of each item purchased, including:

Type of item (ring, necklace, coin, etc.)
Weight
Precious metal content (karat or fineness)
Distinguishing features

Photography Requirements: Many jurisdictions within the DFW metroplex require photographs of items purchased. Dallas County, Tarrant County, and Collin County all have specific photographic documentation requirements.

Transaction Receipt: The buyer must provide you with a detailed receipt showing:

Date of transaction
Description of items purchased
Amount paid
Buyer’s contact information

Holding Period Documentation: Gold buyers must document their compliance with mandated holding periods before melting or reselling items.

The rigorous nature of these requirements explains why the documentation process takes several minutes even for straightforward transactions. While some sellers initially find these requirements cumbersome, they ultimately protect legitimate sellers by creating a paper trail that distinguishes their proper transactions from potentially stolen goods.

Documentation for Different Types of Sellers

Documentation requirements sometimes vary depending on who is selling the gold:

Individual Sellers

Most transactions involve individual sellers offering their personal items. Standard identification and transaction documentation apply, as outlined above.

Estate Representatives

When selling gold from an estate, additional documentation may be required:

Letters Testamentary or Letters of Administration: Legal documents establishing your authority to sell assets from the estate.

Death Certificate: Some buyers may request a copy of the death certificate, particularly for high-value transactions.

Estate Tax ID Number: For formal estates, the estate’s tax identification number may be required for reporting purposes.

In Dallas County specifically, probate documentation requirements tend to be strictly enforced due to the high volume of estate transactions.

Business Sellers

Businesses selling gold items (such as jewelry stores liquidating inventory) need:

Business Tax ID: Your company’s Employer Identification Number (EIN).

Resale Certificate: Documentation of your business’s authorization to collect sales tax.

Business Owner Identification: Personal identification of the business owner or authorized representative.

Third-Party Sellers

If you’re selling gold on someone else’s behalf:

Written Authorization: A signed letter from the owner authorizing you to sell on their behalf.

Owner’s Identification: A copy of the owner’s government-issued ID.

Your Identification: Your own government-issued photo ID.

These third-party selling requirements are particularly stringent in the Dallas market due to past incidents of unauthorized sales.

Tax Documentation Considerations

Gold sales may have tax implications requiring specific documentation:

Capital Gains Reporting

For investment gold (coins, bullion, etc.), sales may be subject to capital gains tax if sold at a profit:

Basis Documentation: Records establishing your purchase price and date.

Transaction Records: Documentation of the selling price and date.

IRS Form 1099-B: For certain large transactions, buyers may be required to file this form reporting the sale to the IRS.

According to the Internal Revenue Service, collectible gold items, including certain coins and bullion, are subject to a maximum 28% long-term capital gains tax rate rather than the lower rates that apply to most other assets.

Cash Transaction Reporting

Federal law requires reporting of large cash transactions:

IRS Form 8300: Businesses must file this form for cash transactions exceeding $10,000.

Buyer Reporting Obligation: This reporting is the buyer’s responsibility, but as a seller, you should be aware that these transactions are reported to the government.

Multiple Transaction Rules: Related transactions totaling over $10,000 within a 12-month period may trigger reporting requirements even if individual transactions are smaller.

While most gold sales in our Dallas showroom fall below these thresholds, customers selling large collections or high-value items should be aware of these federal reporting requirements.

Practical Documentation Tips for Dallas Sellers

Based on our extensive experience with Dallas-area gold sellers, we recommend these practical approaches to documentation:

Bring More Than the Minimum

It’s better to arrive with more documentation than required rather than insufficient identification:

Two Forms of ID: We recommend bringing two forms of government-issued identification when possible.

Proof of Address: If your ID doesn’t show your current address, bring a recent utility bill, lease agreement, or bank statement.

Supporting Ownership Documentation: When available, bring receipts, appraisals, or inheritance papers that help establish provenance.

Prepare for Specific Scenarios

Certain situations benefit from additional preparation:

Joint Owners: If jewelry or gold items are jointly owned (for example, by spouses), both owners’ presence and identification simplify the process.

Business Hours Planning: Documentation verification may require calls to probate courts or other authorities, so selling during standard business hours can prevent delays.

High-Value Transactions: For significant sales (typically over $5,000 in the Dallas market), calling ahead allows the buyer to prepare for additional documentation needs.

Record Keeping for Sellers

While buyers maintain transaction records as required by law, sellers should maintain their own documentation:

Transaction Receipts: Keep the detailed receipt provided by the buyer.

Payment Records: Maintain records of how you were paid (cash, check, transfer).

Communications: Keep any emails or written communications regarding the transaction.

Tax Records: Store relevant documents with your tax records if the sale has potential tax implications.

The Better Business Bureau recommends keeping transaction records for at least three years, particularly for valuable items.

Documentation for Special Types of Gold Items

Different types of gold items sometimes involve specialized documentation:

Collectible or Numismatic Coins

For coins with potential collector value:

Certificates of Authenticity: Documentation from the mint or authorized dealer.

Grading Certificates: Documentation from professional grading services like PCGS or NGC.

Purchase Records: Original receipts establishing provenance and purchase price.

Branded or Designer Jewelry

For high-end designer pieces:

Original Purchase Receipts: Establishing authenticity and original value.

Certificates of Authenticity: Documentation from the manufacturer.

Appraisal Documents: Professional appraisals detailing the piece’s characteristics.

Investment Bullion

For investment-grade gold bars or coins:

Assay Certificates: Documentation of purity and authenticity.

Purchase Records: Establishing cost basis for tax purposes.

Storage Documentation: Records from secure storage facilities if applicable.

The Documentation Process at Dallas Cash for Gold

To give you a clear picture of what to expect, here’s how we handle documentation at our North Dallas location:

Initial Verification: We examine your government-issued ID and verify it meets legal requirements.
Transaction Recording: We create a detailed record of your items, including weights, descriptions, and photographs as required by law.
Transparent Documentation: We complete all paperwork in your presence, explaining each document and its purpose.
Documentation Copies: We provide copies of all transaction documents for your records.
Secure Data Handling: All personal information is stored securely in compliance with privacy regulations.

Our goal is to make this process as efficient and straightforward as possible while meeting all legal requirements that protect both you and our business.

Special Documentation Considerations in DFW

The Dallas-Fort Worth metroplex has some unique documentation aspects to be aware of:

Municipal Variations: Documentation requirements can vary slightly between Dallas, Fort Worth, Plano, and other local municipalities. Buyers in each city must comply with both state law and local ordinances.

Enhanced Reporting: Some Dallas-area jurisdictions have enacted enhanced reporting requirements in recent years, particularly following incidents of theft.

Digital Documentation Transition: Many DFW precious metals buyers, including Dallas Cash for Gold, have transitioned to digital documentation systems that streamline the process while enhancing security.

Multiple Language Support: Given the diverse population of the metroplex, many established buyers offer documentation assistance in Spanish and other languages to ensure all sellers fully understand the process.

Common Documentation Questions from Dallas Sellers

After thousands of transactions, we’ve noticed several questions that consistently arise regarding documentation:

“Why do you need my ID for a small transaction?”

Texas law requires verification of seller identity for all precious metals transactions, regardless of size. There is no minimum transaction amount exempt from identification requirements.

“Will my information be shared with anyone?”

Your transaction information is kept confidential except when legally required reporting thresholds are met or if law enforcement requests records as part of an investigation. Standard transactions are not reported to third parties.

“Can I sell gold without ID in Dallas?”

No. Any legitimate, licensed gold buyer in Texas must verify and record your identity with government-issued identification. Operations offering to buy gold without proper identification are operating illegally.

“Do I need the original receipts for my gold items?”

While helpful for establishing provenance and potentially increasing value for certain items, original receipts are not legally required to sell most gold items. However, they may be necessary for optimal tax treatment of investment gold.

Final Thoughts: Documentation as Protection

While documentation requirements might initially seem bureaucratic, they serve important purposes for legitimate sellers:

Theft Prevention: Documentation requirements make it harder for stolen items to be sold, protecting the original owners.

Legal Protection: Proper documentation establishes that you legally sold your items, preventing future disputes.

Tax Compliance: Appropriate records ensure you can properly report transactions for tax purposes if required.

Market Legitimacy: These requirements help maintain the integrity of the Dallas gold market, ensuring fair practices for all participants.

At Dallas Cash for Gold, we view documentation not as a burden but as an essential component of a professional, trustworthy transaction. Our commitment to following proper procedures has helped build our reputation as one of North Dallas’s most respected gold buyers.

We invite you to visit our showroom where we’ll guide you through the documentation process with clarity and efficiency, ensuring your gold selling experience is both compliant and comfortable.