UNLICENSED traders holding events to get the public to sell them gold could be part of an organised crime network, the Office of Fair Trading has said.
Traders not based in the Island are called non-resident chapmen and require a licence. The OFT carries out checks on them to ensure they are "fit and proper".
Anyone trading who doesn't have a relevant licence could face jail for six months, a £5,000 fine or both.
Recently enforcement officers intervened to stop an event being held by an unlicensed trader at a community centre in the Island.
A statement by the OFT said anyone reading the local papers during the last couple of years will have noticed a rise in the number of advertisements placed by traders wanting to buy gold, silver, medals and watches.
A more recent development has seen these traders targeting specific parts of the Island using flyers to advertise events at short notice.
Many of these advertisements are placed by traders from outside the Isle of Man - usually from the UK or Ireland - and promote events to be held in church halls, community centres, hotels or pubs, at which they will buy gold, silver, medals and watches.
The OFT has issued a small number of licences to legitimate non-resident chapmen but is aware of others attempting to hold events at short notice without having obtained the necessary licence.
Traders who go door to door trying to buy gold and other goods also require a licence. This is the case whether or not they are resident in the Island.
The OFT maintains a register of licensed chapmen, both resident and non-resident, and urges the general public and anyone responsible for hiring out venues to check with it to ensure any trader going door to door or wishing to hold an event has been issued with a licence.
The statement said: "There is an obvious risk that unlicensed chapmen choose not to apply for a licence because they would not pass the checks the OFT carries out and are more likely to attempt to defraud customers by not offering fair prices for what may actually be very valuable personal property.
"These traders are not lovable rogues who buy and sell antiques and dodge the authorities. They may be part of an organised criminal network trying to take advantage of the high price of gold.
"If the market in gold became less attractive to them, they would simply move on to another scam."
Chairman of the Office of Fair Trading Bill Henderson MHK said: "No one should become involved with these traders unless they are satisfied that they have the necessary licence – otherwise you are quite likely to be ripped off.
"Even when dealing with a licensed trader anyone who has gold, silver, medals, watches or similar goods to sell should try and get another estimate of their value before committing themselves to a sale.
"It can be difficult for consumers to work out what is a fair price for their valuables.
"Local jewellers may be able to provide you with an estimate of the value of an item – so check with them first.
"Don't opt for the quick cash fix, you may be in real danger of being substantially ripped off. Always double check."
