Gold and Silver Pawn Shops: What You Need to Know

The short term loans are used by individuals and families to bridge the financial gap and meet many immediate needs including paying utility, rent and hospital bills as well as buying food and gas. On some occasions, they have even helped small business owners meet their payroll expenses.The National Pawnbrokers Association (NPA) in Texas, which advocates for the rights of its members before government, says these loans "provide a safety-net to over 30 million unbanked or under-banked Americans".

The advantages of short-term loans:• They provide cash when there is nowhere else to turn • You do not require a credit check • They never negatively affect a customer's credit • You can retrieve your gold and silver in the stipulated time and reuse them for future loansNot many are aware that pawnbrokers have a code of ethics which requires them to serve customers with honesty, integrity and professionalism. They must also obey laws enacted by the local, state and federal governments. Below are some points of interest shared by the NPA.Interesting facts:• According to the 2010 U.S. Economic Census, there were approximately 8,600 pawn establishments • 81% of these stores are independently owned small businesses or small regional chains • Pawnbrokers and their transactions are governed by more than 13 federal statutes and regulations, including consumer protection • Other aspects of transactions, including the interest rate, loan duration and grace period, redemption method, record-keeping, etc. are governed by state and local lawsThey are more than just trade-in shopsSome shops go beyond lending money for your jewelry and coins. They also buy and sell precious metals, collectibles and other items of value, including your electronics. If you have unused jewelry or old coins sitting in your drawer, get them valued at an established broker in your area. You could be sitting on a small fortune and not know it. Some stores even provide jewelry repair services and could restore your broken items to look like new again, after which you could sell them for a fair price.

Finding the right pawn shopGiven the number of establishments, how do you decide which shop to go to? It's not that hard. Find out how long they have been around and what their customers say about them. Established brokers are more likely to provide a fair price and quality service. They want their customers to keep coming back to them. NPA membership might be another way to determine how they conduct their business as it reflects their commitment to ethical standards.

This is the type of store that will offer their customers money for a variety of different items. The money that they offer is normally a fraction of what the item(s) are worth. The pawn shop has existed since Ancient Greece but they had different rules on how they operated them. Usually when you pawn an item, you will have one or two months to pay back the money owed to get your stuff back. You will also have an additional fee or charge. If you do not pay back what you borrowed in the specified time the pawnbroker will have the right to sell your item, but they cannot sell it before that date.

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