- a pawnbroker (or pawnshop) is an individual or business that offers secured loans to people, with items of personal property used as collateral.
- a person used by another to gain an end,
- the pawn is the most numerous and (in most circumstances) the weakest piece in the game of chess, representing infantry, or more particularly armed peasants or pikemen.
Being gold buyers in New Zealand we occasionally have customers ask us if we will lend money on gold jewellery items as security. There are unscrupulous pawn shops and loan sharks that will take advantage of vulnerable Kiwis needing fast cash or a payday advance.
At Gold Smart we have the opinion that debt is not the answer – especially if you have other finance commitments. We’ve had customers tell us about companies charging 360% interest per annum! If someone chooses to “pawn” their gold and not sell it, it’s likely they will lose because the high interest rates wipe out any potential gains in the gold price (opportunity cost). They also have control over your items and based on the law of averages, a certain amount of people will slip on their obligations and your items then become their property. The pawnbroker can then sell your items via a public or internet auction website. You’ll lose any interest you’ve paid, the items and the potential return you would have made from selling your gold to Gold Smart.
Basically more debt is not a smart idea. We can’t provide financial advice, however with some research you’ll find all the templates and budget plans that will help you get back on top of things. If you have gold (or silver) to sell in New Zealand, and you are looking for the best value gold price talk with the friendly and professional team of gold buyers at Gold Smart.
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P.S. Based on a loan of $1,000, you would have to pay back $3,600 after 12 months!!