Hi all, just had a little experience I just had to share with SS members. On Saturday I found that i had lost my wallet and we all know the dramas that involves. I needed a couple of hundred urgently and had no one i could call on to help. I wracked my brain and came up with this brilliant idea of ringing the local friendly pawnbroker. So I rang this guy, told him my situation, and explained that i could repay on Monday when the banks opened. He asked me what I had of value so I explained that I had some silver that he could hold as collateral, to which he replied "Oh we don't touch silver" and pretty well dismissed me offhand. So I hung up the phone and thought that this guy must have got the wrong idea, so I rang again and explained that it wasn't just any old silver but Perth Mint and other bullion. He started to show some interest then so i said how much bullion would you need to lend me $200 until Monday to which he replied "How much have you got?' Well obviously I am not going to divulge that information so I offered to bring in a PM 1kg bar, to which he replied "Well silvers not worth much only about $25 an ounce" I corrected him on the spot price and explained that this bar is worth about $700 as there are 32 oz in a kilo. He seemed to think about it for a minute and came up with this beauty "Tell you what i will do mate, you bring in two of those bars, together with your drivers licence, birth certificate and current utilities bill and I will give you $200. Then come back on Monday with $300 cash and you can have your bars back. This was the first time I had any reason to go near a pawn shop and will definitely be the last! I know you guys have probably never had this need but is this normal practice? Any experiences i would love to hear them. Cheers Rick
I think you need to ring dept of fair trading about his interest rates . Im pretty sure they have some parameters to work on & that seems excessive
Thanks renovator i just laughed it off obviously found the cash elsewhere. The point i was trying to make was why so much collateral for a few dollars and also the fact he new nothing about good old fashioned silver.
That does seem a little extreme, they could have made a few easy bucks but $1400 collateral and 50% interest on the loan is terrible. You think gold and silver items would be fairly common in these shops.
Well 50% interest is relative, 50% interest p.a isn't insane for a pawn shop.... but 50% over two days is equal to compounded 49708038956397064122028592714823% p.a (1.50^180, i let him off for 6 days)
Really good pawn shops will only charge 10%. Some are even known to charge 5% for a loan of less that 7 days. Shame your stuck in the west and not here in good old SA.
This is for all members too. Next time ask the SS membership for help. a bank transfer is all you need as long as you have the same bank as the SS member for the instant transfer. $200 is not much Just mail your passport and dont leave town. We know most each other here and we value what we have in common. A little help sometimes is not a big ask. Cheers, LD
Boneyard i keep my licence in my glove box as it is only a E licence which is paper and deteriates in my wallet
That is a really nice thought/gesture. I, for one, would be happy to come to the party with a modest amount for someone I have traded with or spoken to. As you said, the large majority of us have the same thing in common and we all know the minority with whom we would be very wary. Cheers B
the max is 30% per month that they can charge I believe ( or part here of ) i.e. 1 day you still get charged the full 30%
Sus. Really sus. Hock Shop + birth certificate + driver's licence + utilities bill = (identity theft and/or home invasion) - 0.000001 Seriously - this guy wanted to eyeball your home address after you've already told him you have kilo PMs? (Shudder) Your story illustrates the wisdom of preppers when they say keep a couple of grand in the hand.
I wonder if you went to a coin shop that buys back silver of the would have held your bar until Monday for a 200 dollar loan? They would have known the silvers worth and it could have been a no lose situation for them.
i think we should set up a section in the forum where people can pawn their metal to help out people in need of a cash money.. anyone ??
Legality etc If I need cash bad, I'd just honestly sell a couple ounces at spot or lower for f2f! (I've seen it done by a few members on the forum)
