For years, pawnbrokers have provided money in return for jewellery and valuable items. In fact, history tells us that lending money for hand-held goods is one of the world’s oldest professions. Such shops might not have enjoyed the History Channel’s “Pawn Stars” limelight in the old days but they were an important part of community and industry. You may want to check out Gold 2 Green for more.
Shops in this category today offer much of the same services. The short-term loans are used by individuals and families to bridge the financial gap and meet many immediate needs including paying bills for utilities, rentals and hospitals, as well as buying food and gas. They also also helped small business owners reach their labor expenses on some times.
The National Pawnbrokers Association (NPA) in Texas, which advocates for its members’ rights before government, says these loans “provide a security net for more than 30 million unbanked or underbanked Americans.”
The benefits of short-term credits:
- They donate cash when there is no other place to turn
- Credit checks are not required
- They rarely impact a customer’s reputation adversely
- You can collect your gold and silver in the specified period and reuse it for future loans
Not many are aware of the fact that pawnbrokers have an ethical code which requires them to serve clients with honesty , integrity and professionalism. They will have to follow the rules of the provincial , national, and federal governments. Below are other points of concern that the NPA discusses.
Data of interest:
- U.S. 2010 according to There were approximately 8,600 pawn establishments in Economic Census
- 81% of these stores are small independent businesses or small regional chains
- Pawnbrokers and their transactions are governed by more than 13 federal statutes and regulations including protection of consumers
- Other aspects of transactions, including interest rates, lending duration and grace period, method of redemption, record keeping, etc., are governed by state and local legislation.
They are more than mere shops
Some shops go beyond loaning your jewelry and coins for money. They are also buying and selling precious metals, collectibles and other valuables, including your electronics. If you sat in your drawer with unused jewelry or old coins, get them valued at an established broker in your area. You might sit on a little wealth and not realize it. Some stores even offer repair services for jewelry and might restore your broken items to look like new again, after which you could sell them for a fair price.
Find the right Power shop
How do you decide which shop to go to, in view of the number of establishments? It is not that difficult. Find out how long and what their clients are thinking about them. Established brokers are more likely to provide quality and fair price service. They want to keep on coming back to their customers. NPA membership could be another way to determine how they conduct their business, as it reflects their ethical standards commitment.