Scale Requirements for Buying Gold

From time to time, someone will contact us looking to start a business buying back gold jewelry from customers. With the price of gold recently it’s becoming more popular than ever. However, there are some real important things to consider. The scale being used to weigh the gold needs to be a precise and accurate scale. In many states, that means the scale used for weighing gold needs to be NTEP approved legal for trade.

For example, in the state of Michigan, the following information is listed on their website regarding buying and selling precious metals. See more at,4610,7-125-1569_19192_21233-233502–,00.html

The Office of Weights and Measures has received numerous inquiries from local authorities responsible for issuing licenses, and individuals buying and selling gold from retail or residential locations. Operators of businesses buying and selling such commodities by weight in the State of Michigan must comply with the requirements of the Michigan Weights and Measures Law, Public Act 283 of 1964 as amended. Business operators must also check with local authorities for specific requirements of local ordinances and licensing requirements that apply. State Law requires that all commercial transactions conducted, based upon a determined weight, must be conducted with the use of an approved scale.  Below is a summary of the basic requirements for all commercial weighing and measuring devices (scales/meters).


  • Scale used is Class II or Class III, NTEP (National Type Evaluation Program) approved (legal for trade)
  • Scale used is tested onsite prior to use by an approved Michigan Registered Agency (third party) or a State Weights and Measures Official
  • A Placed in Service Report and a test report for the device are submitted to the Office of Weights and Measures Continue reading