The Truth About Pawn Shop

The word ‘pawn shop’ has a rather negative connotation to most people. The word brings about an image of a sketchy store in a shady corner of the street where desperate people transact in the hopes of getting a meager sum of money, but this is not exactly the case all the time. You may actually be missing out on good bargains and great deals. A pawn shop is much like a bank, flea market and garage sale all rolled into one. Aside from bartering and getting a loan, you can also purchase items from a pawnshop.

Basically there are three things that usually happen in a pawnshop:

(1) People borrow money with an item as a collateral

(2) people sell items and

(3) people buy items.

In our shop, we specialize in buying and giving cash loans on all jewelry, gold and silver items, watches and other precious stones.

However, before delving deeper into the nitty gritty details of the pawnshop industry, there are several terms and concept we must first discuss and you must understand. A pawn shop, as earlier discussed, gives loans to people in exchange for a valuable item. The person who is engaged in the business of lending money on account of a collateral and who is involved in reselling items to other traders and dealers is called a pawnbroker.

The valuable item is called a collateral. The collateral is usually returned to the owner upon the payment of the loan. However, in the event that the loan is not paid at the agreed time, the pawnbroker keeps the collateral as payment for the unpaid loan. This collateral is sold to another person or put up on auction.

Pawn ShopA loan may also have an interest. The interest is additional fee paid to the pawn shop for an extension of the loan period. A pawnbroker is usually symbolized by three balls. A pawnshop should always issue a pawn ticket containing the name of the person who availed of the loan, the item pawned, the amount of money loaned and the amount of money needed to regain possession of the pawned item. The pawn ticket is important as it is a form of security for both parties.

Another important thing to point out is that pawnshops are regulated by the government, therefore, you have an assurance that the shops are safe and credible. Pawnshops are subject to the rules set by each State. They also have to work hand-in-hand with the police so as to prevent instances of stolen goods traffic.

In our pawn shop, selling and/or pawning items is easy because you can get the help of our trained and knowledgeable associates. Our pawn shop specializes in buying and pawning items, such as watches, rings, earrings, necklaces, gold pins, gold broaches, ankle bracelets, charm bracelets, charm necklaces and diamonds. Your items will be assessed for their top value, or you can also avail of our Gold Kit pack wherein we will assess the value of your item then we will notify you after assessment of such.

If ever you decide to sell the items to us, we will provide you with a sales agreement. Upon accomplishment and adherence to the agreement, you will receive the cash immediately in exchange for the item. If ever you decide to loan the items to us, we will provide you the pawn ticket and give you four months to pay such loan with 3% interest each month. The pawn ticket shall contain the essentials, such as the amount of the loan and the other terms and agreements.

Gone are the days when pawnshops should be averted. Pawnshops are actually a big help to the economy as most banks do not allow small loans that the former provide. Pawnshops and pawnbrokers are heavily regulated by the State so there is no longer a reason to worry about the safety and security of the service we provide.