The modern pawn shop is a unique institution in today’s business world. It is a place where you can get a quick loan for items of value, or quick cash for items you wish to sell. You can also shop a robust and varied inventory of merchandise at remarkable prices.
We’ve all heard the idiom “one man's trash is another man's treasure”, and it’s certainly an accurate statement. We can take it a step further and say that some things you once saw as treasure can end up being trash, so to speak. Back in the college days, you bought that brand new stereo system much to the envy of all your friends. It was replete with a dual-cassette unit and even a turntable, paving the way to production of endless ‘road-trip’ tapes. With a two channel amplifier and speakers the size of an average refrigerator, you were styling with the latest and the greatest. But times have changed.
“Pawning” is a process in which you bring an item into the pawn shop in exchange for a cash loan. For example, you might pawn a gold ring as collateral for a $150 loan. If you repay the loan by a predetermined date, you can retrieve your gold ring. The loan repayment amount will include interest and fees that are typically regulated by the state. You also have the option to extend the repayment time frame, although this will incur continuing interest. If you fail to repay the money on time, the pawn shop takes ownership of the ring and can offer it for resale. A large percentage of pawned items are reclaimed by their owners, but some are forfeited and thus provide inventory for the pawn shop to sell. Pawn shops also purchase items outright to resell, which is another way to provide clients with the cash they need and to acquire inventory for the store.
Pawn Shops are treasure troves for gold, silver, coins and collectibles. If you’re searching the Minneapolis, Twin Cities or St. Paul area for awesome items, you might be in luck. While pawn shops are often home to scrap, guns and lesser-valued items, they’re awesome locations for rarities, oddities, and wonders. These items have either high monetary or novelty value.
Whether you are a buyer or a seller, the most important piece of information for you to know is the true value of your item. Without an accurate assessment, you could be overpaying for a purchase, losing money on a sale, or be so overpriced that no one will be interested. A Pawn Shop can be an excellent resource for determining the true value of a wide range of commodities.
Pawn shops get a bad rap. While they certainly offer much-needed items at low prices, they’re not necessarily places of bad business, cheap items and scams. Despite being local establishments, pawn shops have a high amount of resources available. They use these resources to abide by the law, hold competitive rates and uphold community values. We’re debunking the top five myths surrounding pawn shops, one fact at a time.
With the holiday season upon us, giving (and receiving) gifts is part of the cheer during this time of the year. No matter the winter blues, the inconvenient blizzards and the frosty car windows – a cup of steaming hot chocolate and classic holiday movies with the family makes everything right.