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People stilll sell/loan to pawn shops?

bestdaybestday Posts: 4,274 ✭✭✭✭
While checking out coins at the counter in local pawn shop , a man came into the pawn shop.. he was looking to sell a 1927 Saint PCGS 65 .. he was offered a $900 loan or a buy at $1050.00 ... .Almost wanted to say to seller go to a coin dealer 3 miles away .. but wasn't my business

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    SonorandesertratSonorandesertrat Posts: 5,695 ✭✭✭✭✭
    Yes, this sort of thing happens all the time. There are pawn shops all over town in Tucson, where I live. Unfortunately, some of the coin dealers in town aren't much better than the pawn shops as far as ripping off walk-in sellers is concerned.
    Member: EAC, NBS, C4, CWTS, ANA

    RMR: 'Wer, wenn ich schriee, hörte mich denn aus der Engel Ordnungen?'

    CJ: 'No one!' [Ain't no angels in the coin biz]
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    TwoSides2aCoinTwoSides2aCoin Posts: 45,324 ✭✭✭✭✭
    Originally posted by: bestday
    While checking out coins at the counter in local pawn shop , a man came into the pawn shop.. he was looking to sell a 1927 Saint PCGS 65 .. he was offered a $900 loan or a buy at $1050.00 ... .Almost wanted to say to seller go to a coin dealer 3 miles away .. but wasn't my business


    Correctly, you bit your tongue but I shall say no more for fear of being accused of spam.
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    OverdateOverdate Posts: 7,320 ✭✭✭✭✭
    Most recent eBay sale was $1684. What should be considered a fair buying price by a B&M?

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    TopographicOceansTopographicOceans Posts: 6,535 ✭✭✭✭
    I pawned some coins about 15 years ago. I don't remember what they were, but he offered me about 50% of value for a $1000 loan and not much more to buy them.

    The vig was high but I came back and got them out of hock otherwise I would have taken a 50% loss.

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    291fifth291fifth Posts: 25,256 ✭✭✭✭✭
    Originally posted by: TopographicOceans
    I pawned some coins about 15 years ago. I don't remember what they were, but he offered me about 50% of value for a $1000 loan and not much more to buy them.

    The vig was high but I came back and got them out of hock otherwise I would have taken a 50% loss.




    Pawn shops want to do a pawn that will be redeemed. The money is made on the interest they charge on the loan.
    All glory is fleeting.
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    They will low ball the offer but then try to sell for 50% over retail. I have never had any luck at pawn stores talking them down even to retail.



    It takes a lot to bite your tongue..
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    BAJJERFANBAJJERFAN Posts: 31,694 ✭✭✭✭✭
    Originally posted by: Overdate

    Most recent eBay sale was $1684. What should be considered a fair buying price by a B&M?




    What might be fair based on eBay sales might be considered a lowball rip by PCGS guide price of around $1950.
    theknowitalltroll;
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    BillJonesBillJones Posts: 36,020 ✭✭✭✭✭
    Originally posted by: CSOTUS
    They will low ball the offer but then try to sell for 50% over retail. I have never had any luck at pawn stores talking them down even to retail.

    It takes a lot to bite your tongue..


    Pawn shops are not coin dealers for the most part. I don't who buys their stuff in the end, but my experience has been that it is impossible to get even a fair deal from them. Some of the ones I visited when I was dealer were like junk yard dogs.


    In their defense that is a local one here that gave my father-in-law some good advice on a silver tea set he had. That shop was recommended to me by a very honest local coin dealer. Their statements were backed up by some advice I got from Heritage.


    As for the use of pawn shops, many people have no credit or bad credit and don't have much of a choice. I'm guessing most of us here are okay financially. Unfortunately the same can't be said for most of America these days, especially the younger people.

    Retired dealer and avid collector of U.S. type coins, 19th century presidential campaign medalets and selected medals. In recent years I have been working on a set of British coins - at least one coin from each king or queen who issued pieces that are collectible. I am also collecting at least one coin for each Roman emperor from Julius Caesar to ... ?
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    TigersFan2TigersFan2 Posts: 1,442 ✭✭
    Back around 1998 or so, I was in a coin shop. An elderly lady came in with 5 or 6 Mercury Dimes asking if they were worth anything. The owner told her they weren't worth much and proceeded to buy them from her for face value. At the time, the silver melt value was about 4x face. I spoke up and said they're worth more than face. The owner told me to leave his store. Maybe it wasn't my place to have spoken up. I've never gone back to that coin shop since because I know the owner (if he's still living as he was old then) isn't honest.
    I love the 3 P's: PB&J, PBR and PCGS.
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    OverdateOverdate Posts: 7,320 ✭✭✭✭✭
    Originally posted by: BAJJERFAN
    Originally posted by: Overdate
    Most recent eBay sale was $1684. What should be considered a fair buying price by a B&M?


    What might be fair based on eBay sales might be considered a lowball rip by PCGS guide price of around $1950.

    Maybe, but there have been 7 sales on eBay below $1700 in the past three months. All but one were true auctions, the remaining one was a Best Offer.

    Given these data points, what would be a fair offer from a B&M or pawn shop, enough to cover overhead plus make a reasonable profit? I would consider $1050 a bit low but not an extreme rip.

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    RichieURichRichieURich Posts: 8,653 ✭✭✭✭✭
    Well, pawn shops still exist, so someone must be selling/loaning them stuff. Otherwise they would be out of business.

    An authorized PCGS dealer, and a contributor to the Red Book.

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    roadrunnerroadrunner Posts: 28,374 ✭✭✭✭✭
    Originally posted by: Overdate

    Most recent eBay sale was $1684. What should be considered a fair buying price by a B&M?




    Last time I checked, th majority of the generic gold coin dealers work on a 3-5% margin for most slabbed common gold. Sometimes it's as low as 2.5% and other times up to 7.5%. Considering that any coin shop can pick up the phone and sell a slabbed MS65 Saint to Heritage or Rarcoa on their typical 5% spread suggests a fair buy offer from the B&M would be 5% under the big boys. That would enable the shop to get 10% on a retail sale. They are very liquid coins most of the time. And that's why their spreads tend to be the tightest in the rare coin market (ie close to bullion spreads). But, I have no doubt that most B&M's would like to work on 15-30% when it comes to generic gold. image



    The big boyz current high wholesale price on MS65 Saints is approx $1600. A fair buy would be $1500-$1525. Less than $1400 from a B&M would be a rip.



    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
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    BAJJERFANBAJJERFAN Posts: 31,694 ✭✭✭✭✭
    Originally posted by: roadrunner

    Originally posted by: Overdate

    Most recent eBay sale was $1684. What should be considered a fair buying price by a B&M?




    Last time I checked, th majority of the generic gold coin dealers work on a 3-5% margin for most slabbed common gold. Sometimes it's as low as 2.5% and other times up to 7.5%. Considering that any coin shop can pick up the phone and sell a slabbed MS65 Saint to Heritage or Rarcoa on their typical 5% spread suggests a fair buy offer from the B&M would be 5% under the big boys. That would enable the shop to get 10% on a retail sale. They are very liquid coins most of the time. And that's why their spreads tend to be the tightest in the rare coin market (ie close to bullion spreads). But, I have no doubt that most B&M's would like to work on 15-30% when it comes to generic gold. image



    The big boyz current high wholesale price on MS65 Saints is approx $1600. A fair buy would be $1500-$1525. Less than $1400 from a B&M would be a rip.







    I would have said that $1400 would be fair from a B & M tho I would not be a seller for that.
    theknowitalltroll;
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    bestdaybestday Posts: 4,274 ✭✭✭✭
    Originally posted by: RichieURich
    Well, pawn shops still exist, so someone must be selling/loaning them stuff. Otherwise they would be out of business.


    They interest pawn loan take under a $ 1000, is 20 % a month in Illinois ... the seller took the loan rather than sell
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    OverdateOverdate Posts: 7,320 ✭✭✭✭✭
    One just ended at $1602 on eBay. Free shipping.

    If I were a B&M owner I would be reluctant to offer as high as $1400.

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    rickoricko Posts: 98,721 ✭✭✭✭✭
    Pawn shops are doing a brisk business in this economy (despite what the media may be

    saying). At least in this area.... would not buy any coins at pawn shops ... way too much of

    a rip. Cheers, RickO
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    keetskeets Posts: 25,351 ✭✭✭✭✭
    we are a Coin Shop and a Pawn Shop. we assess value and offer a flat 50% on a Pawn and will typically buy at 80%. those are Industry standards as far as I know, but every business has its own way of doing things.



    current GreySheet is $1,950, so we would do a loan at $975 or a purchase at $1,520 as long as the coin looked OK to us.
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    keetskeets Posts: 25,351 ✭✭✭✭✭
    I went back and reread some of the replies and it is obvious many of you guys have had bad experiences at Pawn Shops. you try us some time.
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    BAJJERFANBAJJERFAN Posts: 31,694 ✭✭✭✭✭
    Originally posted by: ricko

    Pawn shops are doing a brisk business in this economy (despite what the media may be

    saying). At least in this area.... would not buy any coins at pawn shops ... way too much of

    a rip. Cheers, RickO




    Perhaps you might think about putting an ad on CraigsList and offer a $1200 loan on a coin like in the OP and give them 30 days to redeem it for $1300.
    theknowitalltroll;
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    USMarine6USMarine6 Posts: 2,138 ✭✭✭✭✭
    I have a good relationship with 4 or 5 pawn shops in my area. They always leave me with some meat on the bone.
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    bestdaybestday Posts: 4,274 ✭✭✭✭
    Originally posted by: keets
    we are a Coin Shop and a Pawn Shop. we assess value and offer a flat 50% on a Pawn and will typically buy at 80%. those are Industry standards as far as I know, but every business has its own way of doing things.

    current GreySheet is $1,950, so we would do a loan at $975 or a purchase at $1,520 as long as the coin looked OK to us.


    That is about 20% back of bid ...a going rate at B&Ms...Some take 25 % off Bid.... what is your loan rate below $1,000..
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    Cougar1978Cougar1978 Posts: 10,127 ✭✭✭✭✭
    Yes people still use pawn shops. A guy in my coin club runs a coin / pawn shop plus has an ebay store to flip shop purchases. The 1150 offer above seems close to 97% of melt. I was offered this at a coin shop one time on some mod commem MS70 gold coins "we pay 97% of melt on gold as the refiner pays 98%." I passed on the offer and sold the coins on ebay. The business of a pawn shop is making money off "loans" or flipping material for an instant profit. If selling, one needs to shop around and know how to play the game on the selling side of the ball.
    Investor
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    keetskeets Posts: 25,351 ✭✭✭✭✭
    what is your loan rate below $1,000..



    5%.



    the problem at Pawn Shops isn't the Pawn Shop, it's the fact that most people don't have an understanding of what goes on. in the clearest explanation, a Pawn is a SHORT TERM collateralized loan, meant for a couple weeks or a few months, not to be extended for years.



    we have many "books" in our business, customer loans that are so thick that's what they look like. the worst is a guy who pawned his Harley --- his loan payments already exceed the value of the bike yet he keeps making them and still needs to repay the entire loan!!!



    ignorance can be cured, stupidity can be fatal.
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    SonorandesertratSonorandesertrat Posts: 5,695 ✭✭✭✭✭
    " If selling, one needs to shop around and know how to play the game on the selling side of the ball."

    This advice goes well beyond pawn shops, and must include various types of dealers and auction houses, Ebay, the BST, etc.
    Member: EAC, NBS, C4, CWTS, ANA

    RMR: 'Wer, wenn ich schriee, hörte mich denn aus der Engel Ordnungen?'

    CJ: 'No one!' [Ain't no angels in the coin biz]
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    TwoSides2aCoinTwoSides2aCoin Posts: 45,324 ✭✭✭✭✭
    Not to go too far off topic, but I'd bid $14.30 more today. image

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