Pawnshops have been around for thousands of years. It has been around from ancient Greece through the times of the Roman Empire. The laws governing pawn broking have been around since those ancient times and continue to be with us. Pawnshops were more than places where poor people went to lend money. Kings and queens funded their fiefdoms and their crusades by pawning their valuables for cash. The industry became more established outside of Europe at the turn of the 19th century. Once it got established in the United States, it grew rapidly. The rapid growth of the pawn industry was fuelled by the manufacturing industry paying low wages to its workers. Pawnbrokers became the go to places for workers needing a leg up during difficult months, when their monthly wages could not meet their needs. Pawn loans were the original payday loans.
Things have changed over the last century the financial industry introduced credit unions, and facilities for quick small loans. It is almost impossible to secure a short term loan for amounts below $1,000 to be paid off over 30-90 days. The paperwork alone would cost the institution a lot of money
Pawn shops do more than facilitate cash loans using valuable items as collateral. Pawnshops also make money by buying and reselling goods at a profit. The most interest a pawnshop can charge on a loan is 30%. Interest rates are high because the pawnbroker carries the risk of losing money if the person who took out the loan does not redeem the item by paying the loan back and the interest on it. However, this is a risk mitigated by the fact that the pawnbroker can sell the items to recoup his money.
Jewellery is popular with Pawnbrokers. When using jewellery as collateral for your pawn loan, You should bear in mind, the Pawnbroker will offer you a value based on the gold content and not so much on the value of the stones. Keep in mind that the purpose of a pawn shop Geelong is to lend money against an item whose value will largely be greater than the loan. The amount paid for the jewellery you leave behind as collateral is low to encourage you to return for your items. Pawnbrokers often don’t include the diamonds in their valuations.
Pawnbroking is more of a cottage industry in Geelong. If the pawn shop is small, it might not receive a lot of diamonds. This means handling precious stones like diamonds might be uneconomical. The stones would need to be separated from the gold setting and assessed by someone who has experience in gemology. Most Pawnshops have staff that is experienced in evaluating gold or silver but not many have verified gemologists who can grade and evaluate diamonds.
Many gemstones are small and have little to no intrinsic value. Even big commercial stones are hard to resell. Pawn brokers are not diamond experts.
It may seem like a pawn shop Geelongsells all kinds of things from guns to fur coats but that might just be that particular pawn shop. A lot of Pawnshops are selective of what they will accept and what they won’t. However, generally speaking, most pawn shops do not accept things like designer clothing or purses, those sell well in thrift stores. They also may not accept art or books unless it’s a popular, first edition book book that has been signed by the author. Again, there are better places for one to sell such things for good money. unless they are very valuable, such as a first edition or a signed copy of a popular book. Items should be in full working order when you bring them to be pawned. The point is that Pawnbrokers will accept anything they know they can resell.