The Gold Standard - Loans w/cards as collateral
 

I want to welcome one of our newest advertisers, The Gold Standard.. Their company gives loans against baseball cards among other things as collateral. So now all of you guys that are short on funds have a way to get some if need be. I am not a financial advisor but I would always be careful with loans. It is a solution for some and might be a way to keep cards and still get badly needed cash.

http://www.goldstandardny.com/baseba...lectables.html


.

Interesting idea, but I would pass.

An online pawnbroker, essentially.

It's an interesting idea, but didn't PSA try this years ago?

For whatever reason, it didn't work for them.

I kind of remember that also. Maybe PSA offered to high of % of card value and did not charge enough interest.

To any broke member I would offer up to 20% loan value and interest would start at a very low 2% per day.:eek::D;)

im assuming they can offer more than the average pawnbroker on cards if they have more knowledge.

I helped a friend (?) accepting his 1956 Topps set as collateral for a personal loan with an agreed upon repayment date. When that date came without the payment, I upgraded my set with cards from his, as a form of interest on the loan. He ultimately repaid the loan in full and got his somewhat lower grade set in return. When he was unable to pay, he was informed of and accepted the "interest" addendum to the original contract. It all worked out in the end, but I wouldn't recommend it.

i also have lent friends $$$$ keeping their cards as collateral. I felt comfortable because regardless of whether they paid or not...I'd get my $$$ back. Luckily they paid...and they got their card back in the same condition as given to me.

Never a good idea to lend money to friends!!!!

Frank Bucks to the rescue.

Card collateral
 

OMG, Frank is a card usurer

First, let me say I know nothing about the company or its terms. However, in general, the key is the interest rate being charged. We are in basically a zero interest rate environment. If the loan is not a high percentage of the card's market value, it is basically a riskless loan for the lender. As such, an interest rate anywhere near 10% is excessive and should be avoided.

Hmmmm, we have some guys here in Philadelphia who offer the same thing I think...

http://photos.imageevent.com/piojohn...d/image_14.jpg

Or, you could just keep your cards in hand and get a loan from Western Sky at the low APR of 89%. Essentially, you can borrow enough from them to buy a beater Goudey Ruth, but you have to pay back a PSA 8.

Although technically okay according to most dictionaries, I would be leery of any company or eBay seller that has the word "collectable" in it's name or in its literature as opposed to "collectible". Even the amazing Net54 spell-checker underlines "collectable" in red because it thinks the word is bogus!

Excellent ...................

Attachment 207480

Does anyone out in NY area know of this Pawn Shop? 4 months at 4% payback terms. Sounds about right for a Pawn Broker.

We are nice guys. Not your typical Pawn Shop. If you need cash and have items that you are not ready to sell we can be a great alternative. We have many clients with high value items that trust us and use our services.

Ben the budding entrepreneur :D.

Priceless

How do validate the cards are not stolen? This seems like the perfect place to try and pawn a stolen card.

Do you have something in place to flag people who have pawned x number of items and never came back for them, or to flag people that repeatedly pawn the same high dollar cards?

I suspect this is a new revenue stream for your business and it's strategy?

cavete norrower

I clicked on the link to check out your site. I could not find your interest rate listed any where. What rate do you charge for these loans?

Wow....just wow.

If you don't pay, they will come after you with smokelessjoe's Antique Baseball Bat. :eek:

I would assume they just keep the card but I find it very concerning to say the least that they don't even list a rate on the site.

It probably varies.

This thread is turning into a classic :D.

It's an adjustable rate, depending on how many fingers you let them brake.

I'm seriously not sure what's sadder....the existence of such a service, the people who would use it, or the fact that they're being let to advertise on this board. This service being hobby-related is tangential, at best.

I can see how it could be beneficial to people in certain situations. Pawn shop loans have been around for a while and help those without the credit to obtain traditional financing.

However, I would think that if things are so tight you need to borrow against your collection it may be time to simply let go of part of your collection.

Ding ding ding.

You would think the loss you would take on ebay if have to sell quickly wouldnt be worse then the interest you have to pay..who knows.

I would guess the loan to value ratio isn't going to be terribly favorable to the borrower in this kind of situation.

If I had to guess I would say 70-80% of VCP. Maybe less.

This guy would have been the perfect pitchman. May he RIP:

Sweet! I've got a ton of 80s cards I want to pawn off, I'll come back for them. ..I promise.

Good intentions???
 

Maybe they are good guys. There is a pawn shop close by me that is not sleezy or bad. But then there is "Family Pawn" down the street where the only "family" is the two Italian cousins behind the counter, and lots of other cousins beating payments out of customers. I am not stereotyping, because they really are Italian. But don't be fooled, there is nothing "family" about it.

I worry though, that despite good intentions to build a business, and offer pawn services here there might be some members who are a "bit" more addicted than others, and thus more apt to fall prey, all over a hobby, and cardboard nonetheless. As opposed to gold and silver etc, cards really are a "house of cards" when the economy is down with no physical value.

I will add my + 1 to the sentiment that there is more going that needs to be fixed in your life if you can't emotionally sell your cards outright if in debt or serious trouble. To each his own, but I don't quite understand the depth of despair I see on the board occasionally when someone is left without a certain card, because of a cancelled deal, or feels incomplete until they can add a certain card to their collection. It is sad really....

as you said...cards are not like gold or silver and there can be a crash due to the economy or some other reason so isnt it the pawn shop you would be more worried about as they may of now gotten collateral not worth what their loan amount is?

If you're not stereotyping then why mention that they are Italian at all?

Signed,
Dan BRETTA <---Italian

Unless they want to go out of business very quickly it will be less than half your guess.

I know nothing about the new advertisers. I do have 3 friends that each own(ed) a pawn shop with close to 50 yrs combined experience. They loan about 20-30% value and charge 1% interest per day. I am told if they loan a higher % of value the payments aren't made and they just bought store inventory. They say they want some stuff to sell but make most of their $ from interest. If they get stuck with something they can only sell it once but if they keep the pawn value % low enough they can resell(loan interest) it to the original owner many times. The 1% per day interest is pretty standard now days, it is what the large chain store pawn shops are offering on tv commercials.

Reminds me of the constant references to the Cincinnati Wagner guys as black. Yes, it's true, but why is it relevant?

Oh this thread......
 

....I love the smell of popcorn in the morning......

...

At least according to this source, there are usury statues in many states that restrict the rates pawnshops may charge. They are still ridiculously high, but in many states much less than 1 percent a day.

http://www.pawnshopsonline.info/stat...s-comparisons/

For example, New York is 4 percent per month.

New York

SECTION § 46. Rate of interest. Notwithstanding any general or special statutes, local laws and ordinances to the contrary, no collateral loan broker shall ask, demand or receive any greater rate of interest than four per centum per month, or any fraction of a month. Statute Reference

Maybe I'm wrong but don't they themselves make it an issue by claiming "racism" because the hobby community won't recognize the card as real?

That makes sense on the loan to value. I suppose someone is much less likely to let a card go when they've only received less than a third of what it's worth.

I thought pawn shop rates were typically about 10% per month.

I think for someone that has certain cards worth money that are not replaceable this would be a good option over selling them at a reduced price and regretting it later. At least this way you can get a few $$ for what you need and can pay it back over a few months rather than a payday loan at 20%+ per $100 due in 2 weeks or less.

Why even have to caveat the fact that you are not stereo typing. Your going to be perceived as doing so, or not doing so whether you do, or don't :cool:

As a non Italian I take offense to the fact that I may have to caveat every time I may or may not make a stereo type about Italians that some people, or all people may or may not take offense to.

:cool:

Oh, nevermind

Speaking as someone who grew up in North Jersey and whose last name ends in a vowel, I can personally attest that the stereotype certainly existed at that time. As with all stereotypes, the actions of the few get painted by the broad brush, but to me, it is what it is. Beyond being a sterotype in my neck of the woods, it was moreso a badge of honor...sad though that may be.

Tom C

I honestly was not offended by what he wrote...I heard it a lot as a kid, and I still hear it today with people who think it's hilarious. I just think it's funny when people say they are not stereotyping after making an obvious stereotype.

Man that Asian lady sure is a bad driver...I'm not stereotyping because she really is Asian.

That is essentially what he said.

I guess I was wrong. Apparently it did work for them because, according to Bloomberg, they're still in business - Collectors Finance Corporation.

I think you guys have a lot of misconceptions about this service.

According to Bloomberg, it's (Collectors Finance Corporation) used mostly by dealers looking to free up some cash, which makes sense if they have a lot of cash tied up in inventory and are looking to make a significant purchase.

You have to show valid id and I'm pretty sure that they report to local law enforcement. Therefore there would be a record of who pawned the item.

In my house that is not a stereotype it is a fact.:D:eek:

its probably a stereotype that many long time card collectors have asian spouses.....

When did this become a thing? :confused:

My Asian wife uses headphones, but she can't type.:p

officially derailed
 

Wow. I believe we have derailed just a bit... pawn shops to stereotypes. And everything in between. Great day for a mid-day coffee and some popcorn. I for one am thoroughly enjoying this thread.

just look around at the National next year and you will see.....and yes my spouse is asian.....not sure if im a long time collector yet though..so maybe i join that club later..

I only saw one Asian woman at the National this year, and she was with me. :D

I'll have to be more observant next time; I was too concerned with T206s.

Collecting for about 30 yes and married for close to 20 . The only thing I know for sure is the longer I have been married/collecting the more I realize how little I know about them.

You know if "Married......with Children" ever has a reunion show, the baseball card finance may be a good plot line.

Relax people
 

Just relax people. I guess I should have mentioned I am "married to the mob" per se. The inlaws joke about themselves and their cousins all the time.

And why does Wonka get a pass with his picture of three mobsters, and mechanicalman with his link to the "native american" loan company.

Double standard I guess, but really my bad for underestimating some of your needs to intellectualize my act of stereotyping my own family.

And Shenker your "brief history" on net54 is replete with "complaints" followed by "but I am not complaining", and "questioning" long time collectors assessment of your card, followed by "but I am not questioning". Stand back and watch awhile before you jump in...

But...I am not complaining...just saying..

Back to the topic at hand please...

Some "stereotypical" traits that might apply to a few of us Baseball Card collectors:

- We are a predominantly male group...who collects photographic images of other males. I wonder what mainstream society would say about that.

- Most of us (myself included) would benefit from shedding a few pounds.

- We typically have no problem spending a fair amount of money on a piece of cardboard, and quickly justify the purchase. However, spending the same amount of money on something practical for ourselves (such as a pair of new shoes) involves much more thought.

- Baseball Card collectors (unfortunately) spend more time thinking about cards than sex. Seriously, consider it...other than your teenaged years, what did you think about more frequently?

- We sometimes think of cards as an, "investment." Gentlemen, this is a hobby. Wall Street would probably laugh at this in 2015. Thirty years ago, maybe not so much.

Just my thoughts.

Best regards,

Eric

I think I get a pass because I didn't reference the ethnicity of the lenders. I was just highlighting the usurious rates of Western Sky, irrespective of ethnicity. the quotes are yours, not mine.

You are entitled to your opinion just like everyone else. I am not sure how different this is than when I have paid an auction house a percent a month to pay out a large lot I won at auction. I got a good deal and it worked out great, interest and all. I don't think this collateralized sportscard loan is for most of us, but for a dealer, or even a collector, it could be a way to do a deal they couldn't otherwise do.

Great post, Eric. So sad and true at the same time.

I love pawn shops because I can get great deals on the things I like. However, let's be honest, pawn shops are in business to advantage of people in dire straits. Nothing more, nothing less. If you have ever been in a pawn shop, the people in there selling or getting loans are people that are just trying to pay there car payment, $'s for food or clothes for their kids. It's Leon's board and he can sell advertisements to whoever he wants.

Personally, I wouldn't have started a thread about them but that is me and it's not my board.

Mark

Yes right, out of all of the loan companies you could have chosen you chose the one that is 100% owned and run by native americans with a native American spokesperson. Absurd to say you didn't reference the lenders. The ad and your use of it speaks for itself.

Wall Street guys are in signfiicant part the ones buying the high end investment type cards. Not all cards are good investments, but some probably are.

Having been married to the same woman for 30 years, I find that cards offer greater variety.

Yup. You got me. There were 326 google images I found of lending companies charging an 89% interest rate, but I specifically chose the one that would hijack the thread and advance my anti-native American agenda. That was my goal all along. Ban me now.

You said to relax, dude, and I agree with you. No need to mention other posts that, like yours, had no negative intent. My name is Sam Swartz, per the rules.

Hey Sam, I suggest a ceasefire. Lets get back to the BST and buy some cards. Everyone move along, nothing happening here. I never attack, just bite back a bit when provoked, and you were unfortunately in the crossfire. Also feeling a little cranky and "Blue" about my Jays losing today.

All good, man. I just joined this board to learn about cards, buy some off eBay, and distract myself from work. Sorry about your Jays. At least they're in the playoffs. You can probably guess my team did not.

My wifes comment after going to the one baseball card show she's been to -

"I don't think I've ever seen so many fat middle aged white guys in the same place before"

And that's coming from someone who married one and works in computers.

Steve B

I've lived the "thug life" for so long nobody would dare question my posts Brad! :)

http://photos.imageevent.com/piojohn...d/image_15.jpg

My brother in law Franco and best friend Dino just spit up beer through their nose after seeing your post. Is that really you holding the pineapple??

You do you. The market will dictate...just not my style.

No that cat has way more swagger than me....I can only wish to be that hardcore. :)

Not something I would want to see. :eek:

There is a lot of give and take on the board. I didn't say anything when you posted your unauthorized ad on the front page. I don't say much about a lot of stuff that goes on. You are a good member and I wouldn't say anything about it but since we are talking about ads I figured I would throw it out there. Maybe some day I can make the show you are VP of Publicity for.