Pawn Shop my new thrift store?

[insontis]

No. But I'll definitely add it to my list of routine stops!

Well, I had a more enjoyable read typed out until I accidently hit SOMETHING on my keyboard and was unable to recover it. For those who enjoy my long, suspenseful posts, maybe next time. For those who like it short, sweet and to the point, you win this time.

Made two purchases at a pawn shop that I've only browsed in before.

The first, a 14K dainty chain that was priced $40. Weighed it, 3.3 grams. Scrap is weigh double that amount at $79. Hoping to sell for 3x spot.


The second, a piece that I believe has value in resale. A dainty 10K figaro style bracelet. Priced $20, worth $17 in scrap at 1 gram. I'm fairly confident I can at least get 2x what I paid.


I'm pretty sure neither of these pieces were in there last week when I browsed around. I wonder if they had someone new price them. Either way, after spending $60 on pieces that are worth $96 in scrap and around an estimated $200+ in resale.. I'm feeling like I could go back there again.

 

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[vpnavy]

Nice buy. Thanks for sharing...

 

[insontis]

Thanks!

The necklace is stamped Italy ACI 14K on the tag and 585 on the lobster clasp. Bracelet is marked 10K, Italy, and PGDA.

Next time I go back (maybe tomorrow? :P ) I will have to check out the heavier pieces. Heck, I'll drop $175 on a chain/pendant worth $300 in gold - I'm crazy, I'll do it!!

I also need to be looking out for valuable makers marks. I hardly have any idea as to what makers hold additional value, but I am always learning.

 

[jerseyben]

Something is wrong here.

I have never ever heard of a pawn shop selling gold below spot, let alone 50% below spot price.

I am NOT suggesting that you made it up but something is not quite right here. Did you test the chains?

 

[insontis]

Something is wrong here.

I have never ever heard of a pawn shop selling gold below spot, let alone 50% below spot price.

I am NOT suggesting that you made it up but something is not quite right here. Did you test the chains?

I did not test them at the store as they test everything with electronic tester that comes in. I did magnet test out of habit and inspected closely for damage. Hallmarks are clear & known makers.

The chain that was below spot I really feel like was a mistake on their end. I asked to see a bunch of other pieces that were priced low ($30 10k rings, etc), but they were just over spot. I still might go back for a nice 10K wg triple CZ ring they had for $30. Looked real nice, but still not sold on potential resale.

 

[McKinney_5900]

Good luck. I have several pieces my dear ol'Mom left me...she was a thrift store fiend yet all I have discovered so far is that it is not worth the effort after testing the early majority here at home. Momma believed every label saying it's possibly gold or silver, even on the outside of the box. Everyone was raised "by a momma."

 

[insontis]

After hearing that I started to second guess myself, but I just tested each with 10K acid and both hold firm.

 

[insontis]

Good luck. I have several pieces my dear ol'Mom left me...she was a thrift store fiend yet all I have discovered so far is that it is not worth the effort after testing the early majority here at home. Momma believed every label saying it's possibly gold or silver, even on the outside of the box. Everyone was raised "by a momma."

I have to say that I was not taught "by a momma". :P This is a hobby that I'm being self taught, combined with countless feedback from individuals on TreasureNet. I've made my fair share of mistakes early on (I remember buying silver plate before knowing ANY sterling marks). Now I'm very picky and if I am not 99% sure that it is genuine based on close inspection, magnet test, and makers marks, I won't even consider buying it. I don't mind really cheap gambles on pieces that COULD be, but most of the time COULD be pieces are not worth the spare change.

I still make mistakes and can be fooled as anyone can, but I make a point to not fall victim so easily.

 

[McKinney_5900]

I must clarify. Mom's stuff didn't have an actual metal stamp saying a "K rating", but the box did. I would be all over buying it if it did show a stamp. Where did you find the stamps on these tiny rope chains?

 

[insontis]

I must clarify. Mom's stuff didn't have an actual metal stamp saying a "K rating", but the box did. I would be all over buying it if it did show a stamp. Where did you find the stamps on these tiny rope chains?

The necklace is stamped 585 on the tiny opening piece of the lobster clasp and 14K on the metal "tag" piece connecting the chain to the lobster clasp.

The bracelet is stamped 10KT on both the spring clasp and the "tag" piece.

 

[jerseyben]

After hearing that I started to second guess myself, but I just tested each with 10K acid and both hold firm.

Glad to hear.

For 3 years I was friends with the owner of a local we buy gold place. Never once in 3 years did he sell me a single item below spot. You got very lucky. I would scope that place out and see what else they are selling way too cheap.

 

[Omega]

How do you expect to get more than spot for them?

 

[Back-of-the-boat]

How do you expect to get more than spot for them?

Find gullible buyer.

 

[insontis]

How do you expect to get more than spot for them?

They are both in excellent condition. I don't sell nice pieces of jewelry at/below melt prices. The way to look at it is, how much would someone pay for this item brand new? Then consider that there are still few out there that would pay that amount even for a used piece of jewelry in excellent condition if they thought it was cheaper than some other outlet. Think of it like this.. a jewelry store can charge way over spot for pieces and still finds buyers. On eBay, the potential customer base is much larger than that of a brick & mortar. I can undersell a jewelry store's prices and still make money over spot. People are just looking for what they perceive to be a good deal.

 

[dumpsterdiver]

I worked at a pawn shop around 96-98. If it was something the shop could not sell in the case I probably offered about 1/2 spot (broken stuff and ugly stuff). Something that would sell in the store about 3/4 of what it would walk out the door. I also factored in if it was a sell or an actual pawn. If I believed an actual pawn (loan) I could give you above spot and the shop would earn 20% interest in 30 days. This circumstance was very rare.

Where I worked the shop did not actually receive spot value. So if I offered half of spot we got about 75% of spot once we had enough to sell. At that time it could still go up or down. Pawn shops that make a lot of money do so more on evaluating if the seller is actually pawning or selling the item. The business was based mostly on customer evaluation. Most money was made on interest(loans). Many of these cash for gold places have changed the dynamics of that system. So to me I could easily see a pawn shop selling gold below spot. We didn't always like who we were selling scrap gold to either. If its a busy shop there is also some value to just turning it over. Its was a different mindset than cash for gold.

The pawn shop can also has an equally hard time selling rare and valuable jewelry at the store as the average person would selling it.

 

[tamrock]

Something is wrong here.

I have never ever heard of a pawn shop selling gold below spot, let alone 50% below spot price.

I am NOT suggesting that you made it up but something is not quite right here. Did you test the chains?

They have kids working in those chain pawn shops. I once purchased a gold watch in one. It was $38.95 and it should have been $380.95 the ticket even said so many grams of gold on it. I'm sure some kid enter the decimal point in the wrong spot in to the computer. An other time they had a Hamilton 992 Railroad watch in a box with the Zales jewelers logo on it. It was $65. bucks. As I was looking it over I asked is that the best price and the kid said yes, as it just came out as dead pawn, he went on to tell me the watch wasn't an old one because it was sold thru Zales jewelry. I said fine, I still like it, so 65 bucks? I guess I can do that. It had a perfect Montgomery double sunk dial also. Still there was an other time I see this 1/2 ct diamond ring in a chain pawn shop. I gave a bit over $600. for it as it was pawn shop correct pricing for a ring of that type, but what set this ring apart was that it was very high end made and a brilliant diamond was set in it... It had all the C's from what I could tell. They paid no mind to the genuine Cartier signature inside the band. I sold that ring for $2500. and that guy got a smoking deal, but it was a quick flip for me. Big chain pawn shop help are booboo's and easy prey at times. Its the private owned shops you won't find the good scores in. Those kids working the chain stores care little at watching the bottom line. Even some of the store managers goof up. I'm not sure what happened here, but big chain pawn shops are one of my favorites to shop, especially the ones found in College towns with college kid help.

 

[dumpsterdiver]

They have kids working in those chain pawn shops. I once purchased a gold watch in one. It was $38.95 and it should have been $380.95 the ticket even said so many grams of gold on it. I'm sure some kid enter the decimal point in the wrong spot in to the computer. An other time they had a Hamilton 992 Railroad watch in a box with the Zales jewelers logo on it. It was $65. bucks. As I was looking it over I asked is that the best price and the kid said yes, as it just came out as dead pawn, he went on to tell me the watch wasn't an old one because it was sold thru Zales jewelry. I said fine, I still like it, so 65 bucks? I guess I can do that. It had a perfect Montgomery double sunk dial also. Still there was an other time I see this 1/2 ct diamond ring in a chain pawn shop. I gave a bit over $600. for it as it was pawn shop correct pricing for a ring of that type, but what set this ring apart was that it was very high end made and a brilliant diamond was set in it... It had all the C's from what I could tell. They paid no mind to the genuine Cartier signature inside the band. I sold that ring for $2500. and that guy got a smoking deal, but it was a quick flip for me. Big chain pawn shop help are booboo's and easy prey at times. Its the private owned shops you won't find the good scores in. Those kids working the chain stores care little at watching the bottom line. Even some of the store managers goof up. I'm not sure what happened here, but big chain pawn shops are one of my favorites to shop, especially the ones found in College towns with college kid help.

I was a "kid" when I worked at a private owned shop. If you would have shown me a high end Cartier diamond I would have been 50% on the side it was from Zarconia and 50% on the side it was worth a fortune. My main job was to pick up lunch and to intervene before my boss punch someones lights out. He once turned down a sale of a jewelers bar of platinum because the guys pissed him off. A mistake on a piece of jewelry was not a big deal because there were high end guns, guitars, electronics, etc. before the internet you couldn't always know. a fake diamond, a gun that wouldn't shot straight. i think the internet sort of killed the classic pawn shop in a way.

 

[tamrock]

I was a "kid" when I worked at a private owned shop. If you would have shown me a high end Cartier diamond I would have been 50% on the side it was from Zarconia and 50% on the side it was worth a fortune. My main job was to pick up lunch and to intervene before my boss punch someones lights out. He once turned down a sale of a jewelers bar of platinum because the guys pissed him off. A mistake on a piece of jewelry was not a big deal because there were high end guns, guitars, electronics, etc. before the internet you couldn't always know. a fake diamond, a gun that wouldn't shot straight. i think the internet sort of killed the classic pawn shop in a way.

That's why I enjoy watching Hard Core Pawn. It's great entertainment watching folks who could give a $hit about people skills.

 

[insontis]

They have kids working in those chain pawn shops. I once purchased a gold watch in one. It was $38.95 and it should have been $380.95 the ticket even said so many grams of gold on it. I'm sure some kid enter the decimal point in the wrong spot in to the computer. An other time they had a Hamilton 992 Railroad watch in a box with the Zales jewelers logo on it. It was $65. bucks. As I was looking it over I asked is that the best price and the kid said yes, as it just came out as dead pawn, he went on to tell me the watch wasn't an old one because it was sold thru Zales jewelry. I said fine, I still like it, so 65 bucks? I guess I can do that. It had a perfect Montgomery double sunk dial also. Still there was an other time I see this 1/2 ct diamond ring in a chain pawn shop. I gave a bit over $600. for it as it was pawn shop correct pricing for a ring of that type, but what set this ring apart was that it was very high end made and a brilliant diamond was set in it... It had all the C's from what I could tell. They paid no mind to the genuine Cartier signature inside the band. I sold that ring for $2500. and that guy got a smoking deal, but it was a quick flip for me. Big chain pawn shop help are booboo's and easy prey at times. Its the private owned shops you won't find the good scores in. Those kids working the chain stores care little at watching the bottom line. Even some of the store managers goof up. I'm not sure what happened here, but big chain pawn shops are one of my favorites to shop, especially the ones found in College towns with college kid help.

So I believe I figured out where the goof up was. They had this piece marked with a price tag stating only that it is "jewelry" and had a barcode. The receipt, on the other hand, lists details for the specific item. Here is where the answers almost seem more clear and then make you go.. what?

The receipt says that the item was a jewelry necklace. It says that it is 10K. Also, it states the item weighs 2.2 DWT.

So let me break this down piece by piece. The information that they put into their system states the necklace is 10K, despite it acid testing as 14K and hallmarked on the clasp & tag. Even at 10K with my scale this piece is worth $56, which would mean it would be sold at 71% of spot.

The weight they have listed for my piece (2.2 DWT) puts it at about .1 grams more than mine. Who is correct? I hope theirs for more than one reason. 0.1 grams isn't much of anything, but it is another $2.40 in 14K.

So assuming my scale is off by that little bit (unless they rounded 2.12 DWT up to 2.2), I actually paid $40 for $82 worth of gold.

 

[diggummup]

Nice finds. The pawn shops around here are all out of their minds, when it comes to prices on anything.