The Gold Standard - Loans w/cards as collateral

[Leon]

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


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[Brian Van Horn]

Interesting idea, but I would pass.

[Peter_Spaeth]

An online pawnbroker, essentially.

[vintagetoppsguy]

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

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

[bnorth]

Originally Posted by vintagetoppsguy

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.

[1952boyntoncollector]

Originally Posted by Peter_Spaeth

An online pawnbroker, essentially.

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

[frankbmd]

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.

[ullmandds]

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!!!!

[Exhibitman]

[Peter_Spaeth]

Originally Posted by frankbmd

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.

Frank Bucks to the rescue.

[ALR-bishop]

OMG, Frank is a card usurer

[oldjudge]

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.

[wonkaticket]

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

[mechanicalman]

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.

[h2oya311]

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!

[mybuddyinc]

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

mr-burns-picture.jpg

[T205 GB]

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

[GoldStandard]

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.

[Brian Van Horn]

Originally Posted by bnorth

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.

Ben the budding entrepreneur .

[conor912]

Originally Posted by GoldStandard

We are nice guys. Not your typical Pawn Shop.

Priceless

[Kevin.Shenker]

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?

[Exhibitman]

[baseballart]

cavete norrower

[pokerplyr80]

Originally Posted by GoldStandard

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.

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?

[CobbvLajoie1910]

Wow....just wow.

[DHogan]

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

[pokerplyr80]

Originally Posted by DHogan

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

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.

[Peter_Spaeth]

Originally Posted by pokerplyr80

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.

[Brian Van Horn]

This thread is turning into a classic .

[conor912]

Originally Posted by pokerplyr80

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'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.

[pokerplyr80]

Originally Posted by conor912

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.

[conor912]

Originally Posted by pokerplyr80

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.

[1952boyntoncollector]

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.

[Peter_Spaeth]

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

[pokerplyr80]

Originally Posted by Peter_Spaeth

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.

[Brian Van Horn]

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

[t206fix]

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

[marvymelvin]

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....

[1952boyntoncollector]

Originally Posted by marvymelvin

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?

[slidekellyslide]

Originally Posted by marvymelvin

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.

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

Signed,
Dan BRETTA <---Italian

[bnorth]

Originally Posted by pokerplyr80

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

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.

[Peter_Spaeth]

Originally Posted by slidekellyslide

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

Signed,
Dan BRETTA <---Italian

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

[MikeGarcia]

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

...

[Peter_Spaeth]

Originally Posted by bnorth

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.

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

[PolarBear]

Originally Posted by Peter_Spaeth

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

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?

[pokerplyr80]

Originally Posted by bnorth

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.

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.

[T205 GB]

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.

[Kevin.Shenker]

Originally Posted by slidekellyslide

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

Signed,
Dan BRETTA <---Italian

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

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.

[Exhibitman]

Oh, nevermind

[btcarfagno]

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