You can’t spell Pawn Broker without “broke”
Posted on: 24th February 2014 By Anita

In the United States there are several shows on television about Pawn Brokers that are, in all honesty, quite interesting. People from all over bring in their valuable (and sometimes not so valuable) items to either sell or “pawn” and get some quick cash, and sometimes the items that they bring in are very interesting and treasured. These programs usually show the interaction between the pawn shop owner and the customer as being one that’s quite amicable and, mostly, fair.

In reality however, not just in the United States but all over the world, most pawn shops aren’t nearly as entertaining. In most cases they charge their “customers” such a high interest rates on the money that they loan them for their pawned items that, by the time they pay that money back, it’s almost not worth it for the item that they put up.

Many times the pawn shop is the choice of last resort for people who are in desperate need of money to pay bills of all sorts, and the pawn shop owners know this very well. That’s why, most of the time, they severely undervalue the items that people bring in, so that they can lend them less money while still charging them a ridiculous amount of interest.

For example, if you brought a solid gold bar,  with a worth of about $20,000,  to the average pawn shop, they would likely tell you that it had a value of closer to $5000! The fact is, while it might be slightly easier to get quick cash by pawning something, in most cases it’s not even close to being a “good deal”.

Heaven forbid if you can’t pay that money back on time too, as the average pawn shop has absolutely no problem keeping your item, whether it’s fairly new or a family heirloom that’s been in the family for generations.

In many countries, including here in our lovely New Zealand, as the economy continues to stay flat many people are starting to use pawn shops in a desperate attempt to keep up with their bills. Unfortunately, in many cases they actually end up more in debt after using a pawn shop than they were before and, in some worst-case scenarios, they not only lose money but lose the valuable item that they put up for pawn.

One last problem that people are concerned about when it comes to pawn shops, even if they aren’t using them for quick cash, is that it seems wherever a pawn shop opens the surrounding community tends to deteriorate. Without going into too much detail for fear of offending anyone, it seems that pawn shops have a habit of attracting those types of people who might not, shall we say, live their lives within the boundaries of normal society.

If you’re considering selling your solid gold items of any kind and you’re worried that you won’t be treated fairly at a pawn shop, give us a call here at Gold Smart. We take pride in treating our customers extremely fair and giving them excellent prices on all of their solid gold items. By the way, if you Google our name you’ll find a wealth of positive feedback about us from people all over New Zealand.