I have a question, hope this is the correct category. I frequently see gold jewelry for sale with a low, "resibo" price. I understand that the person who pawned the jewelry is trying to sell it including some kind of commission for the pawnshop. What I'd like to know is how this works and why the person who pawned the jewelry is interested in selling it for the pawnshop? Thinking this may be a way to get a Christmas gift for someone but would like to understand the situation. I would think this a relatively safe purchase as the pawnshop has already done a professional appraisal prior to accepting the jewelry as collateral on the loan. I've watched this for a while but am completely clueless as to how this works and what, if anything, the owner gets out of selling the item they pawned. Thank you in advance for any light you can shed on this.
Question is non-specific but I will try. Most just pawn the gold in the expectation to make monthly interest payments to retain ownership of said item. Rarely it is sold to the pawnshop but of coarse it happens but most can get more for said item via a private sale. Pawnshops would generally only give out scrap value of the item (gold) at day of market value. Best to ask when the item came to the pawn shop and you will clearly know what the pawnshops top payout was for said item. Remember your in the Philippines so said item may have been pawned for (one apple and a chocolate bar) The due diligence on any item a pawnshop would do on a gold item is about the distance a Grasshopper can can jump the Pacific Ocean. Item in many cases likely would burn your fingers. I submit you buy new and never venture to a pawnshop for any reason............ it's generally a bad lane to go down. If you do decide to deal with a some-what large purchase of said gold item.......... take an image, description and time the pawn shop took said item in and drop it off at the Police station near you.............. your much more likely to get a reward. Point being........buy new, the recipient will be more pleased in the long run and your comfort zone is assured..........Cheers! P.S........... If you do buy from a pawnshop. low ball tremendously as they do. These are buyers times.....not sellers!!!
I get that you believe that most of the jewelry at pawnshops (like Palawan Pawn) is stolen but if that's the case why would the people who pawned the jewelry try to resell it once it's been pawned? I see lots of items listed on various seller pages by people who apparently pawned jewelry but want to help the pawnshop sell it And regarding the value, I would believe that a pawnshop would pay intrinsic value of the gold, whatever the market currently is. Because otherwise the seller would just go to a different pawnshop. Therefore, buying at the raw value (what the pawnshop originally paid), plus whatever interest is still a good deal. Is this calculation incorrect?
If you are going to buy gold or jewelry here you better know how to tell if it is actually authentic yourself. If you don't you will end up getting scammed. Also remember that diamonds are an extremely common rock that are in no way rare. Their value is artificially inflated. Never buy diamonds, especially as an "investment".
I canceled the diamond ring I wanted to give my gf at Christmas, maybe something for the kitchen is a better investment, ooohhh wait I need to consider if sex or food is most important to me
People who are trying to sell items they have pawned do not have enough money to redeem it. Therefore if they can sell it and redeem it from the pawn shop they can make a bit of money between the sale price and the pawn value. Most of the jewelry in pawn shops is not stolen either, the items are pawned because of cash needed to pay hospital bills/medicine.. The police make regular rounds of pawn shops looking for stolen jewelry.. Often they look like regular buyers. It would shock you to see how many wedding rings are pawned, i doubt those are stolen.
Must depend on the amount of interest accrued - if it has been there a long time then it may have accrued so much interest it now represents poor value. I want to buy gold here but, as @Rye83 pointed out, how to be sure it is authentic? I think there might be more than a few scammers around. Seems they don't want people here holding gold in any quantity.
I said "many cases" and named no shop. You may want to Google (Women gets 12 years for buying stolen necklace, Philippines.) To assume there is not a % of stolen articles in relation to the pawn business (not to mention all scams related to buying the pawn tickets and or re-selling) is being reckless IMHO. And "no" I will not entertain a debate on this one......Cheers!
Normally any interest is already calculated into the money the pawn shop will give for an item.. most also have a fixed term for redemption say 3 or 4 months. After this time the pawn shop will sell the jewelry to big time buyers who melt it down and make jewelry out of it..I know a large jewelry shop here who buys gold by weight and can make you nearly anything you like.. Chains, rings, bracelets.
