Trend: Pawn Shops Going High End
According to a report by the Asbury Park Press, as the TV show Pawn Stars is increasing the awareness of pawnshops and their benefit, a greater number of pawnshops are going upscale. Top quality goods such as Rolex watches, branded gold jewelry, Persian Rugs, and even Ferrari cars are being bought and sold within pawn shops.
Also, high end items are being utilized as collateral in pawn loans to help individuals and families weather their financial storms. Per the Asbury Park Press report, unlike past recessions that hit the lower stratum of consumers, the current downturn has hit people at all levels.
Asbury reports that the current economy has even led business owners to leverage their Rolex watches and other items to make payroll or pay other important bills. Gone are the days in which many business owners can go to traditional banks and ask for a short-term loan to accommodate their financial needs.
Some experts have speculated that the pawnshop industry is a much needed band aide until the banking system is corrected by the powers that be. Government regulators have sought to keep pawn lenders honest by creating interest rate ceilings. Additionally, the Patriot Act and Internal Revenue Service have enacted stricter reporting requirements for pawn lenders.
The result for failure to pay back a pawn loan is the loss of the item utilized for collateral. According to Asbury, 85 percent of all Americans that take out pawn loans pay them back in full.
For those who want to sell jewelry, sell gold, and other items for top dollar, the most reputable pawn brokers understand the worth of particular commodities and are willing to pay their value. The key to finding high end brokers is to find those with positive customer reviews (via the Internet) and those with extensive reseller channels.
Finally, Asbury points out that there are pawn dealers who focus on specific items in today’s economy. For instance, some specialize in Rolex watches, others in antiques and art, and others in gold and diamonds. Of course, there are those that specialize in all high end items as well. There is something for everyone…all it takes is a bit of research to find the right option for a particular need.