Selling vs. Pawning

One of my favorite TV shows is Pawn Stars and I just found out that it is one of the most, if not the most, popular TV show on Cable TV.

Whenever someone comes into the shop with something, the consumer is asked if he wants to pawn it or sell it. Everyone says sell it on this show. On another pawn shop show on another network many say "pawn it."

So what's the difference?

The difference comes down to this: do you want the item back? If you don't then go ahead and sell it. But before you sell it in a pawn shop, have a good idea about what it really is worth -- including what you could sell it for elsewhere. Pawn shops buy items that they know they can turn a profit on later, and the quicker the turn around (the quicker the sale) the better the price you will get when you sell something to a pawn shop.

Pawn shops make loans on item depending on the item's value, and what they can sell it for later if the borrower doesn't pay off the loan to redeem the item. Pawn shops also charge a high interest rate, so if you are going to pawn something borrow no more than you really need because that loan money is very expensive loan money.

And by all means, shop around for loan rates among pawn shops-- some can discount.

And by taking the minimum loan amount, you have a better chance of having the money later to redeem your item and get it back.

Recent reality TV shows like "Pawn Stars" have brought a lot attention to the pawn industry. While the mainstream media attention may be new, the industry is not. In fact, the history of pawn shops dates back more than 3,000 years. Great ideas here for either pawning or we'll just sell it.

Many years ago on my Vegas trips I would be sure to visit Pawn Shops for Great deals ( I would buy computers, cameras, electronics, cd's, and dvd's )> Now that most of them sell on Ebay the prices have gone up and the plentiful deals are now few and far apart.

I would be very careful about buying anything of value on eBay unless it was guaranteed in some sort of way. When I was an active coin collector I only bought coins that were certified by PCGS (Professional Coin Grading Service) and were being sold by companies and sellers who I knew to be reliable.

I would never try to buy something of "value" on ebay otherwise. And that is why I see things such as Rolex watches sell for so little on ebay... because "buyers" do not trust what's being offered.

Honestly, would you spend $8,000 on a Rolex that should be selling for $12,000 ?? Unless I knew that the seller was the jeweler down the street from me, I wouldn't touch it.