Posted on 12/23/2011 11:24:45 PM PST by thecodont
A Beverly Hills real estate broker is waiting for escrow to close on two upscale properties, but that won't happen until after Christmas.
So what is a powerhouse agent to do to generate some quick spending money for holiday shopping?
This one hocked her diamond Patek Philippe watch at a Beverly Hills pawnshop for cash. She'll reclaim her $15,000 timepiece when the deals close, said Jordan Tabach-Bank, chief executive of 73-year-old Beverly Loan Co.
"Never before have we seen so many affluent people needing cash," he said. "People are in a cash crunch. You can't go to the bank for a loan for holiday shopping."
So that might explain why a Beverly Hills financial manager pawned his wife's six-carat diamond engagement ring so he could reward his staff members with Christmas bonuses this year. And why an elderly woman decided to outright sell her $80,000, circa-1920s emerald and diamond bracelet to the pawnshop so she could buy Christmas gifts for her children and grandchildren.
(Excerpt) Read more at latimes.com ...
http://www.freerepublic.com/focus/f-news/2156614/posts
Frugality became the name of the game in my house.
I love pawn shops.
When the price of gold drove up even the most basic jewelry, pawn shops were the place to go.
Found a fabulous necklace for my neice (opal, diamond, and ruby) for her birthday. Was thrilled to find an opal ring for Christmas!
Gorgeous pieces for a fraction of what you would pay at the mall.
Also snagged a gorgeous full-length racoon coat at the consignment shop for Christmas at a tenth of what I would have paid for it new.
Folks are having a hard time adjusting to the "new" normal. It's old hat to me and mine.
Hmmmm,
Could be a thread or even a category.
I have absolutely no idea how pawn shops work.
A pawn broker will loan you a small loan equivalent to a fraction of whatever personal collateral you are using to secure the loan.
They are short-term loans, to which you’d pay interest on them, and if you pay back the money before the term is up, you get your collateral back. If you fail to pay it back in time, the pawn broker is then free to sell his collateral to whomever is willing to buy it for whatever price he can get for it.
You can also bring in items to sell outright. You don't get nearly what you would in a private sale, or anything close to the "new" price, because it's used.
Let's take a watch. You paid $5K new. Used, it's worth about $2,500. They might give you $1,700 for it, because they need to cover their overhead and make a profit, too.
So, that beautiful ring at the mall that costs $400 will run about $150 at the pawn shop, just because it isn't "new." The good news is that it will appraise for it's full value for insurance purposes, so if it gets lost or stolen you get the FULL value, $400.
When my favorite pair of gold earrings got damaged (don't ask, still angry at hubby over it!), I wanted to replace them. The mall was offering fragile junk in my price range; the private gold stores had much better quality but I couldn't justify the cost. Found a weighty pair of stunning gold earrings for only $110. Good quality at a great price - winner!
Consignment clothing runs the same way. You spend $4,000 on a fur coat and wear it for a year. You offer it to the consignment shop for $800. After a month, the price drops to $600. After two months, the price drops to $400.
Handbags that sell for $1,500 are close to $300 at consignment. Silk suits for $1,000 are $200 at consignment.
You get the best deals when you buy post-season. Seasonal clearance is about 10% of what you would pay new, so that $1K suit is now $100. Works great if you buy classic looks that stay in style, don't fluctuate in weight very much, and are open to what's available instead of getting caught in the "must have this type/color" trap.
I've made no secret on FR that my family got hit with staggering medical debt (yes, even with insurance). Thankfully, that crisis has passed. I learned from it how to still look like a champagne lady (even on a beer pocketbook). Even though we now have money to spare, my thought is - why? Getting a great deal is just as important as the item, itself.
It was very helpful with the kids. I have 3, and they grow out of clothes in just a few months. I can hit a children's consignment shop and pick up an entire seasonal wardrobe for only $150, versus the $500 per kid I used to spend.
Frees up money for other things, and was VERY helpful when times were dreadfully tight.
I have found coin shops are a great place to find cheap jewelry,that way you aren’t paying for huge advertising budgets, brightly lit showrooms, huge number of employees and other such expenses. Just remember there is no such thing as a “new” diamond.
Thanks for the suggestion!
I understand that those are stereotypes, reinforced by popular culture on t.v. and in the movies, but isn't there a kernel of truth in them?
Regards,
Any given trade has its more crooked members, but a lot are honest dealers.
I don’t work in the pawn industry, but I do work in a similar trade, dealing in scrap, second hand jewelry and bullion, and I know for a fact that we are honest and scrupulous, despite the overall reputation of the business. I also know that we are not alone in our honesty...
“So that might explain why a Beverly Hills financial manager pawned his wife’s six-carat diamond engagement ring so he could reward his staff members with Christmas bonuses this year.”
At least he has his priorities right!
The last thing he wants is something stolen in his shop--and I've seen him scare off a couple of people he suspected weren't on the up and up.
If he buys something stolen, he's out his money if he finds out--the police come and get it. Firearms have to be checked through NCIC, and the cops come and get them if they're hot.
If he doesn't check them and gets caught, he's out of business (license revoked).
Not the mob, he's just a guy making a living, and providing a short-term loan service or place to convert odds and ends into cash.
I enjoy going in there to browse, and have picked up a couple of decent band instruments for the grand kids at a reasonable price, and lots of other odds and ends you just won't find in a shop otherwise.
It is as much an opportunity to learn about things you might not otherwise see, and I think that is the root fascination with shows on TV like 'Pawn Stars', too.
“You spend $4,000 on a fur coat.... after two months, the price drops to $400. Handbags that sell for $1,500 are $200 at consignment”.
Okay, YOU and I need to go shopping together! I will buy you lunch and everything! I am the type of person that gets a natural “high” if I can get what I need/want for way, way less.
When you go to a Pawn shop, you better know what you are taking there , and what you are buying.
If you know as little about Jewelry as I do, you should stay home. They may be as honest as the day is long, but they are going to have an asking price, and if you know Jewelry you will probably not go for the asking price.
Pawn shops are bargaining places, and if you cannot recognise the bargain, it probably isn’t one.They are there to make money, and the prices are not written in stone.
I do kow tools and most tools I see in the pawn shop are way overpriced, I can assume their jewelry is too.,
When you go to a Pawn shop, you better know what you are taking there , and what you are buying.
If you know as little about Jewelry as I do, you should stay home. They may be as honest as the day is long, but they are going to have an asking price, and if you know Jewelry you will probably not go for the asking price.
Pawn shops are bargaining places, and if you cannot recognise the bargain, it probably isn’t one.They are there to make money, and the prices are not written in stone.
I do know tools and most tools I see in the pawn shop are way overpriced, I can assume their jewelry is too.,
I just cannot imagine, even if I was wealthy, spending thousands on a timepiece. I have one diamond, my engagement ring, and I have no desire to ever own another. Can’t be bothered with spending money on gold and such.
I know a little about jewelry. What would make me wary is if they stated a ring (for example) is gold. Usually, there is a stamp inside or on a piece of jewelry stating 14 k or 10 k. What I don’t know is what the stamp for gold plated would be? Of course, I can’t tell a “good” diamond vs an “inferior” quality one. I have been in one pawn shop my entire life and you are right... the merchandise was overpriced.
I just can’t bring myself to go into a pawn shop because of so many items sold because of sad times. Seems like bad vibes. I have enough bad karma that I don’t need to purchase more.
I don’t believe in a purse costing more than what cash will ever be in it. Last purse I purchased was $2 at the church garage sale. It’s perfect. Pockets galore.
I did all my kid’s shopping and wardrobes at garages. An entire year’s wardrobe could be had for $20 (no shoes). They’re teens now so are too above garage sales these days but it’s their money and not mine.
There are two in my city. Both are immaculately clean, brightly lit, professionally run, friendly staff, and handle everything from lawn equipment to jewelry.
I know jewelry.
Maternal grandparents were old money. Received lots of jewelry as gifts over the years. Can spot fakes a mile away. Fake stones, gold overlays just by the color, etc.
If the one place you went to was no good, try another. Like any other industry, you have a few bad apples - don't let it spoil your opinion of the entire bunch.
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